2022-09-24-PitchBook-2022年二季度美国私募股权中间市场报告（英）-2022.9-25页_25页_6mb

Q2 2022 US PE Middle Market Report Summary

Overview

• The Q2 2022 US middle-market private equity (PE) sector experienced a slowdown in deal activity amid inflation, interest rate hikes, and supply chain disruptions. Despite reduced activity, the market remains relatively robust compared to historic standards, supported by ample dry powder.

Deal Activity

• Deal count and value increased slightly from Q1 2022 but were below Q2 2021 peaks. Add-on strategies surged, accounting for 73.0% of deal value, driven by scaling opportunities in fragmented markets. Key sectors included IT, healthcare, and energy.

Fundraising

• Fundraising slowed due to LPs reaching allocation limits and reduced capital flow from exits. Middle-market funds secured strong step-ups (91.4% of funds closed larger than predecessor size), but first-time managers faced challenges in a crowded market.

Exits

• Exit activity declined, with no public listings in Q2. Sponsors-to-sponsor and corporate acquisitions became primary exit routes, with high median exit values indicating sustained deal activity despite macroeconomic headwinds.

Performance

• PE portfolios saw markdowns (e.g., Blackstone and KKR reported ~7% declines), but middle-market performers relatively better due to diversification and less dependence on public comparables. Middle-market companies demonstrated resilience with revenue growth outpacing inflation.

Expert Insights

• Antares Capital: Emphasized stability in direct lending and opportunities in less-cyclical sectors like software and healthcare.
• Baker Tilly: Advised on risk mitigation through reduced leverage, operational improvements, and strategic capital allocation amid inflation and recession fears.

Conclusion

• The market faces ongoing challenges from inflation and interest rates, but sponsors with strong credit cultures and diversification can capitalize on opportunities in pricing power and operational efficiencies.