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. Mezzanine activity for the LTM period ending June 30th increased approximately 19% YoY from 304 deals to 363 deals. Compared to the previous quarter (Q1 2022), deals including mezzanine debt increased from 65 to 78 in Q2 2022. The increase in mezzanine deal activity inversely correlates with the decrease of private equity sponsored deal volume, which decreased nearly 11% from 1,412 deals in Q1 2022 to 1,259 deals in Q2 2022. Out of the 78 mezzanine deals that closed in Q2 2022, 46 deals were buyouts, 14 were minority financings, 14 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.
