Lower Middle Market Weekly Outlook

Happy Presidents’ Day, all. Have you ever interviewed for a job 18 months before the supposed start date? Well, that is what is being asked of many junior investment bankers. According to an article from DealBook, some PE firms are courting these young bankers even earlier this year in an effort to overcome the hiring frenzy. Hearsay points to Golden Gate Capital as the catalyst for the particularly early start this year.

The hiring strategy is not the only thing changing for PE firms. David Bonderman also remarked last week that traditional fund structures are losing luster among many LPs. He explained, “A lot of people want to co-invest” and that “[t]hey want special deals.” Looks like the idea of proprietary deal flow no longer applies to just GPs.

Transactions

• Francisco Partners raises $2.88 billion for tech buyouts
• New Page Capital acquires Engineered Steel Products
• Levy Acquisition Corp in the lead to acquire Del Taco
• CVC Capital Partners acquires Wireless Logic
• Aquiline Capital Partners to invest in Engs Commercial Finance
• Altamont Capital Partners acquires Cotton Patch Cafe
• Spire Capital to invest in Lighthouse eDiscovery
• Vista Equity Partners buys Automated Insights
• Harbour Group buys Air Monitor
• Expedia to acquire Orbitz
• Thomson Street Capital Partners buys Infinity Behavior Health Services
• Kinderhook Industries acquires CSDVRS
• Nautic Partners to acquire IPS Corp
• Sequel Holdings acquires Lakeview Farms
• Vector Capital takes Saba Software private
• Huron Capital’s coffee platform acquires U.S. Roasterie
• Energy Spectrum Capital to invest in Santa Fe Midstream
• Edge Natural Resources launches new PE firm in Dallas
• Greenbriar Equity invests in Lazer Spot
• Clearlake Capital to buy FrontRage Solutions
• Aequitas Capital funds Gladstone Analytics

Events

• Wednesday: 28th Annual Power and Gas M&A Symposium

Opinions

• What are the biggest challenges for mid-market companies in 2015?
• PE feels squeeze from junk loan crackdown
• A $10 billion-plus LBO this year? The capital is there
• Salix is once again a potential takeover target
• Leadership lessons in investment banking
• K.K.R. profits fall 89% on turmoil in energy sector
• Predictive analytics: A case for private equity?
• 5 things happening in emerging markets private equity
• Why now is the time for Asian private equity
• How PE gave this beauty brand a $100 million makeover
• What PE execs said about oil prices
• The role of PE in M&A as seen in the Rite Aid deal
• EBITDA: A closely watched metric that can be more art than math

This week in history…XM and Sirius announce a merger of equals (2007).