Middle Market Weekly Outlook

Yesterday, Andy Kessler penned an opinion piece in the WSJ about how “the glory days of private equity are over.” Although Mr. Kessler points to regulatory, tax, and macroeconomic developments as major challenges for the PE industry, he believes that the real reason private equity is nearing an end is because “It is fresh out of fat targets.”

But, does private equity really need “fat targets” to survive? His argument seems to overlook the importance — and size — of middle market private equity. Just because Airbnb and Uber are not viable PE candidates does not necessarily mean the investment strategy is approaching demise.

Transactions:

• Cronus Partners advises GK Software on its acquisition of retail technology business
• Victory Park Capital invests in KBP foods
• Global Infrastructure Partners to buy Competitive Power Ventures
• Princeton Capital acquires Capital Point Partners Investment Portfolio
• Platinum Equity to buy PrimeSource Building
• Highlander Partners acquires Lemon-X, combines with Juice Tyme
• Lincoln International represents Keystone Capital in sale of Vidaris and LPI
• Franklin company launches PE firm
• Former Blackstone exec launches fund to focus on Benelux countries
• NewSpring capital completes X5 Solutions acquisition
• Kinderhook Industries buys Superwinch
• Meridian General Capital buys Silver Spur Corp.
• Partners Group to sell Nobel Learning Communities
• Baird capital buys Clearwater Group
• Meridian General Capital acquires Silver Spur Corporation
• Northwestern Mutual acquires LearnVest
• Shock Doctor Sports and McDavid agree to merge
• Catterton leads $25 million funding round for Artsy
• Pervasip completes acquisition of Canalytix
• Seacoast Banking Corporation of Florida to acquire Grand Bankshares
• Wind Point Partners acquires Gehl Foods
• 3G Capital in talks to buy Kraft Foods Group
• American Securities recaps Aspen Dental

Events:

• Monday: Real Estate Investors Summit
• Tuesday: Rocky Mountain Corporate Growth Forum

Opinions:

• U.S. PE firms find a chilly reception in Australia
• Top 11 healthcare mergers and acquisitions in 2015 (so far)
• Private equity gearing up for exits
• Sellers taking on less risk in European M&A
• US M&A advisors eye European expansion
• Investment banks recruit for rise of big data analytics
• What’s in a PE firm’s name? Possibly legal action
• US M&A deals slip, PE activity up in February
• PE firms likely to hire people similar to themselves
• 10 power women shaping Africa’s PE market
• More Kraft-Heinz mega-mergers on the way?
• The biggest mergers and acquisition in oil stocks
• Private equity investment offers challenge for the tech sector
• Alternative managers falling behind on ESG
• Small is beautiful for Kraft, Heinz investment bankers

This week in history… The US government acquires Alaska for $7.2 million (1867).