Q3 2024 US Private Equity Middle Market Report

The Q3 2024 US Private Equity Middle Market Report provides a detailed analysis of the current state of private equity (PE) buyout activity in the middle market segment. It outlines a significant acceleration in middle-market buyouts, which increased by 11.1% from the previous quarter, contributing to a year-to-date gain of 17.5% compared to the same period last year. The report discusses the challenges faced in exits and valuations, noting that while megadeals have seen a recovery, middle-market exits are lagging behind, with an annualized gain of only 5%. The document details the current inventory of middle-market portfolio holdings and the implications for future deal-making. Additionally, it examines the evolving financing conditions, highlighting the role of collateralized loan obligations (CLOs) and the impact of federal rate cuts on both large and small buyouts. The report concludes with insights into valuation trends, noting a slight recovery in EV/EBITDA multiples, while EV/revenue multiples continue to struggle.