Lower Middle Market Weekly Outlook

Good morning, all. Despite some recent headwinds, private equity had a strong start to 2014. According to a report released by Cambridge Associates, the asset class outperformed the public markets in the first quarter. In terms of data: “The firm’s Private Equity Index, comprised of 1,137 funds, returned 3.1% during the quarter, besting the lower-than-2% returns of the Nasdaq Composite index and the S&P 500.” The public markets, however, beat PE in the 1-year, 3-year, and 5-year time frames.

In other news, small business owners are feeling pretty optimistic about the future.

Transactions:

• MTS Health Investors acquires majority stake of myNEXUS
• Bloomer Plastics acquires Blown Film Manufacturer
• Good Technology acquires Macheen
• Prudential Capital invests in MediGain
• Abaco Energy Technologies to acquire Basin Tools
• Fortress Investment Group buys Omnisure Group
• Sentinel Capital acquires Hollander Sleep Products
• Escalate Capital Partners invests in Kareo
• Catalyst Investors buys stake in Reputation Institute
• StoneCalibre completes NetPlus acquisition
• The Jordan Company buys Gulfstream
• Greybull Capital buys Monarch
• Crescent Capital invests in P+L Systems

Events:

•  Thursday: Webinar on Best Practices for Executing a Business Development Strategy

Opinions:

• Private equity index gains 3.1% in first quarter
• A death-rattle for ‘two-and-20’ in private investing
• Edinburgh is right size for middle market investor
• Does PE deserve a spot in your middle-class portfolio?
• Closing IPO window could spur more reverse mergers
• PE titans open cloistered world to smaller investors
• How to profit from M&A through arbitrage
• What it will take to change the culture of Wall Street
• Private equity secrecy, revisited
• More price warnings on hospital-led mergers
• Sharp rise in GP mergers as smaller practices struggle to stay above water
• Mid-Market Pulse sees strong outlook for health care
• PE investments helping public pensions
• Buyout deals’ leverage levels are high, but so are cash cushions
• Global PE firms’ investments in Africa more than doubled in first half
• Regulators to give more guidance on leveraged loans
• Breaking away: Younger PE pros spin off
• IPOs: To go public or not to go public, that is the question
• Corporations conduct more M&A as confidence in economy grows

This week in history…Black Tuesday, the worst day in the history of the stock market (1929).