Mid-market private equity activity in the US improved in the third quarter, according to a report issued by BMO Harris Bank.
Deal activity picked up, particularly in healthcare and software sectors, buoyed by debt markets that are clearly open for business.
"It was a good quarter, punctuated by a fairly vibrant August and September, which are not traditionally the most active months of the year," says Dennis Robleski, group head for BMO Harris Bank's sponsor finance group. “While market activity is up, it's important to keep in mind that this is an improvement from what has been a relatively low level of activity over the first seven months of 2013."
The data reflect the state of the market for mid-sized companies, typically those with less than USD50m in EBITDA, and they are drawn from the group's internal transaction review process. The report covers various points of interest for private equity sponsors, companies and other intermediaries, including use of loan proceeds, loan pricing, available leverage, and financing structures of recent middle market transactions.
