Mezzanine activity for the LTM period ending March 31st increased approximately 54% YoY from 241 deals to 371 deals. Compared to the previous quarter (Q4 2021), deals including mezzanine debt decreased from 129 to 59 in Q1 2022. The decrease in mezzanine deal activity correlates with the decrease of private equity sponsored deal volume, which decreased nearly 26% from 1,840 deals in Q4 2021 to 1,366 deals in Q1 2022. Out of the 59 mezzanine deals that closed in Q1 2022, 28 deals were sponsored buyouts, 12 were minority financings, 15 were sponsor-backed add-ons, and 4 were recapitalizations. The most common industries in total M&A activity for the quarter were IT, Services, Healthcare, and Financial, respectively.
