Data & Analysis

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.

2017 DOBR

The results of the 7th annual SPS DOBR indicate that PE firms see a median of 16.6% of their target market deal flow.

The 2017 edition was strategically revamped in several ways, including new statistics and market coverage charts. One prominent update to the 2017 edition of the SPS DOBR is its inclusion of market coverage details for Limited, Moderate, and Broad process deals. Including these market coverage statistics in the Report enables PE firms to determine if relevant intermediaries are inviting them to review opportunities with a minimum number of buyers, versus reviewing those broadly auctioned opportunities.

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.

2013 DOBR

The results show that, on average, PE firms see 23% 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.

Q1 2018

It’s official, there was an overall decline in 2017 mezzanine activity. For the 12-month period ending December 2017, activity was down 28% from 549 to 394. Comparing Q4 2016 with Q4 2017, transactions were down 52% from 154 to 74. Of the 74 completed mezzanine transactions in the fourth quarter of 2017, 69% involved a sponsor. Overall, 9.5% of new platform private equity investments for this period had a mezzanine component, compared to 17.6% of new platform PE investments in Q4 2016. Finally, the Services sector was the most active for the quarter ending December 2017, followed by Industrial, IT, Healthcare, and Consumer.

Q4 2017

Gautier Steel Ltd, headquartered in Johnstown, PA, initiated its Employee Stock Ownership Plan (“ESOP”) buyout with $12M in subordinated debt provided by Mosaic Capital Partners. Gautier is a niche producer of steel products. The transaction was completed in November of 2017 and was intermediated by Signet Capital Advisors.

Q3 2017

In September of 2017, it was announced that Marquette Capital Partners provided mezzanine debt and equity for the recapitalization of Market Fresh Produce. Market Fresh Produce is based in Nixa, Missouri, and is a leading fresh produce company with a “Farm to Fork” strategy. C3 Capital Partners also provided equity and debt for this transaction.

Q2 2017

Centerfield Capital Partners provided both mezzanine debt and equity in the acquisition by Corridor Capital of Indo-European Foods, Inc. (“Indo-European”).

Q1 2017

The February acquisition of BestMark, Inc. (“BestMark”) by Generation Growth Capital was supported by senior debt from Bell Capital Finance and mezzanine financing from ExMarq Capital Partners.

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.

June 2017

The June 2017 Edition highlights 4,600+ PE portfolio companies that were acquired between 2010 – 2014 that are potentially ready to exit!

Harvest Report: June 2017 Edition Summary

Harvest Report: December 2016 Edition Activity Update

December 2016

Companies reviewed: 3560+ PE portfolio
Originally acquired: 2010 – 2013

June 2016

Companies reviewed: 2,300+ PE portfolio
Originally acquired: 2011 – 2012

June 2015

Companies reviewed: 1,544+ PE portfolio
Originally acquired: 2010 – 2011

Our latest analysis, reports, and presentations on active intermediaries, deal sourcing, and mezzanine activity.

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