Middle market update

PB icon
Content hub / Article / PitchBook / Middle market update

Download PitchBook’s Report here.

Middle market PE activity was strong through the first half of the year, according to PitchBook’s newly calculated Middle Market Report. Both deal value and overall volume are on pace to match or exceed last year’s numbers, both of which were records. The back half of the year has been strong historically and we anticipate the same case in 2019.

One metric that’s set for a decrease is fundraising. $41 billion worth of MM funds have closed through the first half of the year, which is on pace to underperform 2018’s $97 billion. What’s more, that tally is across 39 funds, which is well off the 111 raised last year and the 138 funds raised in 2017. Unless something changes, the middle market might see fewer than 100 PE funds close on an annual basis since 2013. Indicative of the slowdown, the number of first-time MM fundraises dropped to just three in H1 2019. Last year there were 19 such rookie funds, which is a stark contrast to the current fundraising environment. That said, the string of big fundraising years going back to 2016 means more than enough money is floating around to see much of an impact from one down year.

Contact Alex Lykken
Making sense of private credit defaults

Webinar

Making sense of private credit defaults

What does private credit default data really tell us? Join our exclusive webinar featuring experts from KBRA, Moody's, Fitch Ratings, and S&P Global to find out.
Register
Credit Journal-Private Credit

Report

Credit Journal-Private Credit

Fitch Ratings’ latest Credit Journal series is a subject-specific, curated compilation of in-depth research and commentary. This edition explores the growing world of private credit, including non-bank lending across business development companies.
Download
PitchBook's US PE Middle Market Report

Report

PitchBook's US PE Middle Market Report

The middle market is off to its best start to a year since 2021, but its share of PE keeps slipping.
Download
Private Debt Investor New York Forum

September 15-16, Hudson Yards, New York

Private Debt Investor New York Forum

Bringing together the investors, managers and advisers shaping the next phase of the market — 200+ allocators and $10.6 trillion of LP capital expected. Benchmark strategies, hear from leading LPs, and cut through market noise over two unmissable days.
Learn more

Latest news

    PE middle-market pooled IRR and TVPI by TEV size bucket

    The lower end of the middle market has generated better returns on average and does not come with significantly more left-tail risk

    Read More

    Accordion inside maturity

    Read More

    Investors exit retail loan funds in July

    Investors in leveraged loans have been pulling money from retail funds in recent weeks, with redemptions outpacing investments by $253.3b…

    Read More