Middle-Market Private Equity Exits Increasing

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.