It’s easy to see why LPs love the US mid market at the moment.
In an uncertain world, investors like the lower levels of leverage and the well-established focus on operational value creation. There’s a good selection of experienced, proven managers. And returns have been consistently strong.
Of course, the fact remains that once too much capital floods into a particular area, returns typically start going down. So the recent suggestion by Cambridge Associates that the US mid-market is now facing a capital overhang of $58 billion – with LPs still flooding in – may be a worrying sign. Macroeconomic and political concerns are also weighing heavily on investors’ minds.
Our special supplement looks at why the US mid-market has been flourishing – and what might threaten its popularity with LPs.
|Click here to download the US mid market supplement|