Lower Middle Market Weekly Outlook

Happy Martin Luther King, Jr. Day, all. It should be a quieter day with the markets closed.

If you feel like new firms and new funds are being announced nearly every day, you’d be right. In 2014, 765 new funds closed on $266 billion in new capital — the highest number since 2000. While this was good news for those seeking capital, some are worried about the growing mountain of dry powder and returns.

In other news, the debate on the ethical nature of investing in pot continues.

Transactions:

• OpenText buys Actuate Corporation
• NGP Energy Capital closes $5.3 billion fund
• Pegasus Capital sells Climatec
• OMERS Private Equity sells Logibec
• The Riverside Company invests in Greenphire
• Quest Equity Partners invests in Boca Executive Realty
• RLJ Equity Partners buys Phase One
• Thompson Street Capital Partners picks up EchoStat Communications
• Risk International acquires Bartlett Actuarial Group
• Excellere Partners invests in TrialCard
• LBC Credit Partners backs recap of C&K Components
• Ex-KKR tech chief launches new PE firm
• Clearview Capital buys Xact Data Discovery
• Brazos and Parallel Investment execs launch new PE firm
  
• RLH Equity Partners funds Inspirage
• Breakaway Capital announces new $50 million lower middle market fund
• Pamlico Capital invests in Dexter + Chaney
• Inverness Graham acquires Identity Finder
• Gores Group acquires US Farathane Corporation
• Amway acquires XS Energy brand
• Triangle Capital Corporation invests in Nomacore
• Ziegler makes PE play with new investment arm
• Z Capital buys Carillon Hotel and Spa

Events:

• Tuesday: Northeast Private Equity Conference in New York

Opinions:

• Software industry M&A rises 14% in 2014
• Morgan Stanley seeks growth in private investments despite Volcker Rule restrictions
• As oil prices fall, banks serving the energy industry brace for a jolt
• 10 investment banks that stand to lose the most from oil’s decline
• Ten predictions for private equity in 2015
• Don’t neglect personal data security in M&A
• Mezz financing on the upswing with more construction
• Major pharmaceutical companies start 2015 with mergers
• “Speed dating” for health care deals at J.P. Morgan conference
• More middle market firms eyeing mergers as economy expands
• Why now is a good time to snap up energy assets
• Investment banks seek design talent to ‘pimp’ their products
• Buyer still rule in M&A, but market is shifting
• South African PE returns at 18.5%
• PE kings are bullish on 2015

This week in history… Western Union buys Atlantic and Pacific Company (1881).