The Great Down Market Migration
Larger private equity firms with north of $1 billion in AUM are starting to bid aggressively on smaller deals. Small, founder-owned companies weren’t considered serious PE targets in recent years, but as funds face pressure to deploy capital and competition for solid middle market deals has become wildly competitive, funds and sponsors are looking for other options. This is causing a few game-changing second-order effects in this market, once characterized by its light competition among big sponsors.