Lower Middle Market Weekly Outlook

Good morning, all. Interest rates may be on the rise later this year — or so mid-market deal professionals think. According to a gathering in NYC last week, 40% of the polled mid-market executives believe “the Federal Reserve will start to increase interest rates in the third quarter.” Only 20% believe the rates would remain unchanged. The higher rates could offer a normalizing effect on the already-high valuations.

In other news, private equity is most popular among the alternative assets classes and Steve Scharzman is now the richest man in private equity.

Transactions

• Catterton invests in Sweaty Betty
• Linden Capital buys Flexan
• GPB Capital Holdings invests in ITeleagen
• Trinity Hunt Partners acquires Depositions Solutions
• Chesswood Group sells Case Funding for $4.4 million
• Clear Harbors to acquire Thermo Fluids for $85 million
• Centre Partners sells Distant Lands Trading for $160 million
• Summer Street recaps Dwellsworks
• Fortress Investment invests in Marathon Patent Group
• RCP Advisors acquires Atlas Diligence
• Boxwood Capital buys sweetFrog
• Genesis Healthcare combines with Skilled Healthcare Group
• Centerbridge recaps Boart Longyear
• Mosaic backs ESOP buyout of ETAK

Events

• Southern Private Equity Conference begins on Monday
• 7th Annual Healthcare Conference is on Wednesday
• TMA Distressed Investing Conference begins on Wednesday

Opinions

•  How giants should do private equity
• $7.3 billion cement deals show tolerance to M&A
• The new kings of nordic private equity
• Women in PE face a difficult balance
• Mid-market dealmakers expect strong year for PE
• A deal that could reverse Pfizer’s history of value-destroying acquisitions
• Low rates, M&A spur flood of pharma deals
• Family money puts its faith in European technology
• Harris-Exelis deal not expected to spark defense M&A rush
• Hospital system mergers make a lot of sense
• Metals slump to unleash surge in private equity mining deals
• Top challenges in the middle market
• Why PE investors should look at Zimbabwe
• Houston energy PE deals surged in 2014

This week in history… The Westinghouse Electric Corporation buys Country Music Television (CMT) and The Nashville Network (TNN) for $1.5 billion (1997).