Middle Market Weekly Outlook

There have only been a few IPOs this year, as investor sentiment falls. But the Wall Street Journal reports that one “typically quiet corner of the IPO market is at least somewhat busy: the so-called blank-check IPO.” These IPOs consist of special purpose acquisition companies, or SPACs, which use IPO proceeds and bank financing to buy and turn around other companies, which then “go public without ever going through the IPO process.”

SPACs were very prominent before the Great Recession as well. However, the volatile market means there’s a difference between the kinds of companies SPACs are investing in now, vs. those they looked at then. Read more.

Insights

• Why PE is partnering with corporate buyers
• Strong exists and high demand propel fundraising
• M&A bankers saying no to more junk
• Is PE still outperforming the public markets?
• Is private equity misunderstood?
• The valuation gap between buyers and sellers

Transactions

• Riverside Company to exit Diatron
• Northwest Venture Partners sells Clarus Commerce
• Lake Pharma Inc. buys Blue Sky BioServices
• Oskar Blues buys Cigar City Brewing
• Clearlake Capital invests in Globe Energy
• AEA’s Evoqua Water Tech to buy Audax-backed Neptune Benson

This Week in History… the United States makes a deal (in secret) to buy Alaska from Russia for $7.2 million. (1867)