Merger, acquisition and leveraged buyout activity levels will continue
to rise in the U.S. mid-market, according to a new survey of middle
market dealmakers by GE Antares Capital, the leading lender for private
equity-backed middle market companies.
Over two-thirds of survey respondents said they expect the mid-market
M&A environment to expand over the next 12 months. This aligns with
recent data from the National Center for the Middle Market (NCMM), which
saw mid-market revenue growth in the first quarter of 2014 of 6.5%
compared to just .5% for the S&P 500.
“Liquidity is everywhere right now,” said John Martin, president and CEO
of GE Antares. “Middle market growth continues to outpace the overall
U.S. economy – and the demand for financing that growth, organically and
through M&A, is high.”
Survey respondents were generally positive about the trends in financing
conditions, however, more than one third of respondents said new banking
regulations have negatively impacted their businesses.
“While the survey reinforces what we are seeing in the market today, it
also points to the less than clear regulatory environment as it affects
the supply of financing,” said Martin. “This is something that middle
market companies and buyers will need to watch closely as they look for
new opportunities to invest.”
GE Antares’ survey was conducted April 29 at the ACG InterGrowth
conference in Las Vegas. The 81 respondents represent a variety of
investment professionals, limited partners, advisors, senior lenders,
junior lenders, intermediaries and private equity firms.
About GE Antares Capital
GE Antares is a unit of GE Capital. With offices in Atlanta, Chicago,
Los Angeles, New York, and San Francisco, GE Antares is a leading middle
market lender, offering a “one-stop” source for GE’s lending and other
services offered to middle market private equity sponsors. GE Antares
was recognized by Private Debt Investor and Private Equity
International as 2013 Lender of the Year, North America and Mid-Cap
Lender of the Year, North America, respectively. GE Capital also
provides middle market private equity sponsors with flexible financing
structures, along with access to GE experts and global business
intelligence. For more information, visit geantares.com.
GE Capital offers consumers and businesses around the globe an array of
financial products and services. For more information, visit www.gecapital.com
or follow company news via Twitter (https://twitter.com/GECapital).
GE (NYSE: GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in
energy, health and home, transportation and finance. Building, powering,
moving and curing the world. Not just imagining. Doing. GE works. For
more information, visit the company's website at www.ge.com
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140509005147/en/
Copyright Business Wire 2014