Private Equity Prepares to Ride Out Pressures in the US Mid-Market

In Private Equity International’s US Mid-Market Report, Jared Broadbent explains that opportunities in the US private equity mid-market sector persist despite the ongoing volatility the market is experiencing.   

While 2021 went down as the busiest year on record for US mid-market activity, a host of new geopolitical and economic uncertainties promise to create new headwinds for activity in 2022. Jared describes how the ongoing war in Ukraine, historic highs in inflation, and continued fallout from the pandemic have created a challenging landscape for private equity as valuations have decreased and rising interest rates have made it tough to finance acquisitions efficiently.

“Private equity managers are already dealing with reductions in profit due to increased labor and material costs. They’re also facing an increased cost of capital due to rising interest rates, while facing a reduction in deal values leading to smaller than anticipated exit values,” explains Jared.

To learn more about Jared’s forecast for the US private equity mid-market, read his article here (subscription required).