Lower Middle Market Weekly Outlook

Private equity fees came into the crosshairs again yesterday when Gretchen Morgenson of the NYTimes published a piece outlining how some large pension funds helped pay for Carlyle’s collusion suit settlement. She writes, “Carlyle agreed to pay $115 million in the settlement. But the firm didn’t shoulder those costs. Nor did Carlyle executives or shareholders.

“Instead, investors in Carlyle Partners IV, a $7.8 billion buyout fund started in 2004, will bear the settlement costs that are not covered by insurance. Those investors include retired state and city employees in California, Illinois, Louisiana, Ohio, Texas and 10 other states. Five New York City and state pensions are among them.”

In other news, articles this week will be focused entirely on different trends and themes in the following industries: Health Care & Life Sciences, Industrials & Manufacturing, Business Services, TMT, Energy, and Consumer. Each day will focus on two of the industries.

Transactions:

• Huron Capital Partners acquires Electronic Controls Systems and Green Total Solutions
• Mainsail Partners invests in PlayMaker CRM
• Edgewater Growth Capital Partners invests in Vertical Bridge
• The Riverside Co. acquires Spectrio
• American Capital exits Unwired Holdings
• Leeds Equity Partners acquires iModules Software
• Monroe Capital provides $35 million loan for Trident University recap
• Vista to buy NAVEX Global
• Janus Capital to acquire VelocityShares
• Triangle Capital Corporation invests in Merlin RAMCo
• Uni-World Capital invests in Drake Manufacturing Services
• Brentwood Associates picks up Z Gallerie
• Novacap buys Dialogic
• Sterling Partners invests in Results Physiotherapy

Events:

• Monday: National Summit for Middle Market Funds
• Monday: Midwest ACG Capital Connection in Chicago
• Wednesday: Understanding Acquisition Financing roundtable in NYC
• Thursday: Consumer Brands Conference in NYC

Opinions:

• Middle market dealmaking surges in first three quarters
• Spinoffs could set stage for next merger wave
• How will the market drop affect middle market M&A?
• Why PE will keep beating the S&P 500
• Is easy money driving company sale prices higher?
• SBIA: Small business lending surges in FY 2014
• As IPO markets stumble, PE buyers prepare to swoop
• 8 dos and don’t of selling your business
• M&A to continue for the construction industry
• PE giants playing from strength despite selloffs
• Middle market companies hit by tax hikes
  
• Corporate acquirers have big appetites for tiny companies

This week in history… Black Thursday, the first day of the  stock market crash that sparks the Great Depression (1929).