Along with increasing buy-side activity in middle-market private equity, recent analysis from Capital IQ shows middle-market private equity exits are also on the upswing, and the number of terminated M&A transactions, including private equity-backed transactions, is declining. 

Terminated M&A deals declined by over 80% in the third quarter from the prior quarter, while terminated private-equity-backed deals have fallen for five consecutive quarters.  

That is all welcome news, as it indicates a recovery in M&A markets and private equity beginning to sell down longer-tenured portfolio companies, which have been difficult to bring to market during the past two years.

Global buyout funds produced 1,700 exits from portfolio companies between the start of the year and the end of the third quarter, a 10% improvement over the exit count from the same period a year ago, according to an S&P Global Market Intelligence analysis of Preqin data. It is a sign exit activity may be picking up after a two-year lull that slowed the return of cash to investors

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