Strategic Insights

Knowledge is power

The deal sourcing community is fragmented.

PE firms see 18% of their target market deal flow, per SPS data cited in Bain & Company’s Global Private Equity Report 2017 Annual Report.

The DOBR is an annual industry standard comparing a Sponsor’s market coverage against all Sponsors and peer groups. These statistics provide detailed insight into a firm’s deal sourcing strategy and helps clients gauge their performance individually, as well as compared to the industry.

2019 DOBR
The results of the 9th annual SPS DOBR indicate that PE firms see a median of 18.8% of their target market deal flow.

The 2019 edition includes 144 qualified PE firms, segmented into 8 different peer groups, eg: Generalist, Quasi-Generalist, Sector Focused. These groups play a crucial role in contextualizing key takeaways, given the wide variety of deal sizes and industries that SPS clients invest in.  Over 50% of SPS clients have at least one dedicated BD professional, with top performers in all 8 peer group having one or more. The sell-side process metrics allow PE firms unparalleled granularity into their coverage of limited processes versus broad auctions, along with how to improve it going forward.

2018 DOBR

According to the 8th annual SPS DOBR, PE firms see a median of 17.2% of their target market deal flow.

2017 DOBR

The results show that, on average, PE firms see 16.6% of their target market deal flow.

2016 DOBR

The results show that, on average, PE firms see 18% of their target market deal flow.

2015 DOBR

The results show that, on average, PE firms see 19% of their target market deal flow.

2014 DOBR

The results show that, on average, PE firms see 19% of their target market deal flow.

The perspective focuses on market trends and transaction in the mezzanine space and is released quarterly. It also provides data pertaining to transaction activity on a quarter-by-quarter basis going back to Q1 2012.

Q2 2020

Mezzanine activity for the LTM period ending March 31st decreased 14.6% YoY from 357 deals to 305 deals.  Compared to the previous quarter (Q4’19), deals including mezzanine debt decreased about 4.2% from 72 deals to 69 in Q1’20.  The decrease in mezzanine deals correlates well with the decrease in private equity sponsored deals which fell 4.4% from 1,019 deals in Q4’19 to 974 deals in Q1’20.

Q1 2020

Mezzanine activity for the LTM period ending December 31st declined 20.1% YoY from 388 to 310 deals. Comparing Q3 ’19 to Q4’19, deals including mezzanine debt fell from 82 deals to 69, a drop of about 15.6%. The drop in mezzanine deals is somewhat correlated to the drop in total PE and M&A deals by year and by quarter.

Q4 2019

Mezzanine activity for the LTM period ending September 30th declined 11.9% from 370 to 326 deals when compared YoY.  However, after the past few quarters of consecutive slight declines in the number of deals, mezzanine activity increased in Q3’19 by 17.5% from Q2’19.

Q3 2019

Brookside Mezzanine Partners provided equity and mezzanine financing in support of Branford Castle’s acquisition of ABC Industries, a manufacturer of industrial and mining ventilation products. TCF Bank provided senior debt for the transaction, which closed in August. Capstone Headwaters was the financial advisor to ABC.

Q2 2019

Midwest Mezzanine partnered with MC Controls in May to acquire Dorsett Technologies, a provider of Supervisory Control and Data Acquisition systems used to monitor, secure and control water, wastewater, stormwater, and energy infrastructures. Bundy Group provided sell-side advisory services to Dorsett Technologies.

Q1 2019

Borgman Capital acquired cheese producer Gilman Cheese Corp. Tecum Capital Partners provided subordinated debt and equity in support of the transaction.

Q4 2018

Golub Capital supported The Riverside Company’s buyout of SureWerx (fka JET Equipment & Tools Ltd.), previously owned by Penfund.

Q3 2018

Q2 2018

Q1 2018

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

The SPS Harvest Report is an annual customized report detailing all PE portfolio companies that may be ready for exit. It is a great resource to proactively target relevant companies that may be in a position to sell in the near term.

July 2019

The July 2019 Edition highlights 5,600+ PE portfolio companies that were acquired between 2012 – 2016 that are potentially ready to exit!
Harvest Report: July 2019 Edition Summary
Harvest Report: July 2019 Advisors & Lenders Edition

June 2018

  • Companies reviewed: 5,300+ PE portfolio
  • Originally acquired: 2011 – 2015

June 2017

  • Companies reviewed: 4,600+ PE portfolio
  • Originally acquired: 2010 – 2014

December 2016

  • Companies reviewed: 3,560+ PE portfolio
  • Originally acquired: 2010 – 2013
Our latest analysis, reports, and presentations on active intermediaries, deal sourcing, and mezzanine activity.

All reports and downloadable content on the Sutton Place Strategies, LLC Website remain the intellectual property of Sutton Place Strategies. Sutton Place Strategies grants all users of its Website a limited, personal, non-exclusive, non-transferable, revocable license to access, display, and use such reports and downloadable content for noncommercial purposes only. Any republication of Sutton Place Strategies reports or downloadable content must include proper citation to Sutton Place Strategies or be explicitly approved in writing by Sutton Place Strategies authorized personnel prior to republication. All rights not specifically granted herein shall be reserved to Sutton Place Strategies.

To receive the Mezzanine Market Newsletter
Sign up here!