Middle Market Weekly Outlook

Good morning, all. The Wall Street Journal reports on the current discussion surrounding private equity fee disclosure. States and cities are calling on the SEC to take action and require PE firms to be more transparent on the issue, and some buyout firms are already agreeing to make changes.

Meanwhile, a survey shows that mid-market companies are pursuing M&A as a growth tactic. Among the insights, 41 percent of 100 surveyed advisors, investors and buyers said M&A is the primary strategy being used by companies to grow in 2015. For 50 percent of corporate buyers, the key evaluation metric is a strong record of growth.

Transactions

• KPS recaps A&E for $275 mln
• Bregal Sagemount invests in Irth Solutions
• Behrman Capital closes $515 mln recap of DDC
• Blackstone, Corsair to buy First Eagle
• Bonduelle prepares bid for Green Giant
• LBC supports New Water’s recap of Pride Family Brands
• KKR to buy Gestamp Solar
• Brentwood-backed Sundance Holding competes dividend recap
• Veritas Capital to buy Alion
• Esterline sells Pacific Aerospace & Electronics to ShoreView
• SolaRight Lighting buys SolarCap Infinity
• North Castle Partners invest in SmartyPants Vitamins
• Accel-KKR invests in Banker’s Toolbox
• VW, Metzler sell LeasePlan

Opinions

• Mid-year M&A Update — is 2015 frontloaded?
• Private equity firms get drastic to improve diversity
• What’s your company worth? The art of valuation
• Asset managers are sizing up M&A
• Corporate matchmakers cash in on M&A boom
• How private equity firms use smaller, less regulated players on Wall Street to keep the party going
• Powder stays dry as private equity struggles to spend
• Responsible investing — in growth markets, it’s common sense
• Deal flow may slow in second half 2015
• M&A has chance to pass 2007 levels (video)
• Get ready for underperformance, private equity consultant says
• Frothy leverage markets move multiples
• States, cities to ask SEC to beef up disclosures for private equity firms
• Spending cuts fuel government contractor M&A
• M&A helps spur long-bond issuance
• Health insurers’ merger mania on hold?
• Mid-market companies are pursuing M&A as a growth tactic
• IRS targets tax dodge by private equity firms
• Invest less in stocks, more in tech and private equity
• US calls for clarity on private equity fees

This week in history…Hercules Inc., a specialty chemicals concern, pays $2.4 billion in cash to acquire industry cohort BetzDearborn Inc. The deal capped off Hercules’ quest to snag a large-scale partner who could bolster its product line (1998).