The SPS Research Team published the Q4 2022 Mezzanine Market Perspective in February 2023. The report focuses on market trends and transactions in the mezzanine space.
At a Glance
Mezzanine activity for the LTM period ending September 30th increased approximately 12% YoY from 335 deals to 375 deals. Compared to the previous quarter (Q2 2022), deals including mezzanine debt slightly increased, from 86 to 87 in Q3 2022. The slight increase in mezzanine deal activity correlates with the slight increase of private equity sponsored deal volume, which increased 3% from 1,329 deals in Q2 2022 to 1,368 deals in Q3 2022. Out of the 87 mezzanine deals that closed in Q3 2022, 43 deals were buyouts, 26 were minority financings, 16 were sponsor-backed add-ons, and 2 were recapitalizations. The most common industries in total M&A activity for the quarter were Services, IT, Healthcare, and Industrial, respectively.