Lower Middle Market Weekly Outlook

Good morning, all. The 114th GOP-controlled Congress kicked off last week, and immediately began trying to make further amends to Dodd-Frank. The proposed bill, introduced by Senator Fitzpatrick, did not pass during its debut — but is expected to make a reappearance in this coming week. While some find the suggested “technical corrections” extremely unappetizing, the bill could have implications for day-to-day life in the private capital markets. The fact that Dodd-Frank was one of the first actions is hardly surprising, given that 30 similar bills were proposed in the 113th Congress.

In other news, we are very excited to announce the redesign of Axial Forum. The new design is meant to focus on better readability, usability, and content discovery. We hope you enjoy it! If you have any thoughts (either positive or negative), please send them along to me at [email protected].

Transactions:

• The Beekman Group closes third lower middle market fund
• ABF Logistics acquires Smart Lines Transportation Group
• Franscisco Partners invests in eSolutions
• Pfingsten acquires Burton Saw
• Morgenthaler Private Equity buys Bowles Fluidics
• Harbour Point Capital formed to make healthcare investments
• Grey Mountain acquires stake in Sunbelt Transformer
• Two big bank mergers close to start 2015
• Skyway Capital Partners sells InStep Software
• BGC extends offer to acquire GFI Group
• Centre Partners invests in Sun Orchard
• Vitruvian Partners invests in CRF Health
• ICV Partners picks up SirsiDynix
• Genstar Capital buys Telestream
• RLJ Equity Partners adds-on Timberlake Membership Software
• J.W. Childs invests in Kosta Browne Winery
• NCK Capital buys Ogle School
• Monroe Capital provides unitranche financing to Incipio Technologies
• Lionbridge Technologies acquires CLS Communiation

Events:

• Tuesday: Private Equity Dealmaker’s Marketplace
• Thursday: Indiana 2015 Capital Markets Showcase 

Opinions:

• Where will PE investors find value in 2015?
• 2014 was a huge year for M&A and private equity
• KKR leads record sales by PE firms
• Valeant to focus on smaller, private deals in 2015
• PE-backed buyout deals and exits reached highest levels since 2007
• 5 things to know about the lawsuit at Charterhouse Capital
• Sovereign wealth funds went full steam ahead direct investing in 2014
• Coming soon: Private equity in 401K plans
• SEC probes PE firms over alleged bribes
• PE deals seen spurring leveraged loan surge
• Tech M&A deals have returned to their pre-crash levels
• Plenty of PE money flowed in regions outside the US in 2014
• Dick’s Sporting Goods is an attractive candidate for PE
• Preventing a hospital merger fail
• Banking revenue expected to disappoint

This week in history… Raytheon Corp. acquires Hughes Electronics (1997).