Lower Middle Market Weekly Outlook

Good morning, all. Hope you had a spooky Halloween weekend. For companies seeking growth, the benefit of private equity backing was confirmed (again) last week. The National Center for Middle Market learned in a recent survey that PE-backed companies grow revenues faster than non-backed companies. Thomas A. Stewart, the center’s executive director, told the WSJ that “the fruits of these investments have fueled stronger results in both top-line growth and job creation for PE-backed middle market companies.”

Last week, however, also brought some bad news for private equity firms when the SEC announced it would be taking a magnifying glass to IRR reporting.

In other news, the Madison Square Garden is considering splitting into two.

Transactions:

• Altamont invests in HUF Worldwide
• Platinum Equity invests in Grupo Terratest
• Warburg Pincus raises $4 billion for first energy fund
• River Associates Investments acquires TMI International
• Centre Partners backs Stonewall Kitchen
• Envisage Equity invests in Noble Environmental Technologies
• Aquiline seeks $1 billion for Fund III
• Monroe Capital provides $20 million facility to Cytovance Biologics
• Permira to acquire Metalogix
• Palladium Equity Partners sells Teasdale Foods
• MTS Health Investors acquires Celerion
• Francisco Partners completes acquisition of Vendavo

Opinions:

• PE-backed companies expand revenue faster than non-PE peers
• Richest are bullish on US as family offices open outposts
• 5 things about private equity dealmaking in Europe
• MCG Capital is winding down portfolio because of credit market
• Mergers and acquisitions: Begin with the end in mind
• Why strong growth in the middle market is good news for the economy
• Trends in middle market mezzanine finance
• Volatile markets cool the IPO market
• Secure all rights to your brand before pitching to strategic buyers
• In praise of the cockroach portfolio
• Debt fuels growth of buyout shops
• PE firms turning to add-on deals as valuations soar
• 5 moves to boost the valuation of your business
• Middle market tax burden rising, threatening job growth
• Private equity as an exit strategy
• Concerns over PE leave pension funds wary
• Big pension and sovereign-wealth funds are cutting out the middleman
• The consequences of saying “no” to a hostile takeover bid
• Private equity loves the shipping industry

This week in history… Charles Henry Dow is born (1851).