Middle Market Weekly Outlook

Most seem to agree that last week’s stock market volatility isn’t likely to affect mid-market M&A activity, which has been on the rise.

Meanwhile, the pressure is on private equity. “Private equity’s fees practices are unfair, sometimes illegal, deeply opaque, and tilted too far in favor general partners at the expense of investors,” reports Chief Financial Officer.

Transactions

• Sycamore to buy department store chain Belk
• Thomas Brave to buy majority stake in DigiCert
• LDC exits Bifold Group investment
• CI Capital sells KIK to Centerbridge
• Providence sells IRONMAN
• Building Materials Corporation of America buys Quest Construction Products
• Levine Leichtman acquires Regional Rail

Opinions

• LPs step out of the shadows
• Here are 5 ways to win over LPs
• Private equity fees paid by universities are worth a closer look
• Private equity funds have changed their hostile ways
• M&A activity isn’t likely to decline
• Sliding revenue equals more M&A
• Higher interest rates will eliminate M&A and buyback-driven growth
• The middle market is safe for now
• Pressure mounts over private equity fees
• Transportation is a hotbed of M&A activity
• Will the market rout halt M&A?

This week in history… FDR’s Revenue Act, also known as the “Wealth Tax Act” is passed into law. The plan increased taxes for the rich and lowered taxes for small businesses. Those unhappy with the plan labelled FDR a Communist and a traitor to his own (very comfortable) class. (1953)