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.
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.
Q2 2017
Reviewing the 12-month period ending March 2017, mezzanine transactions were down 8% from the prior year from 580 to 533. For comparison, overall M&A activity was down slightly for the same period, with less than 3% of transactions completed YOY. In the first quarter of 2017, 104 transactions were completed and 72 (69.2%) involved a sponsor, which is on par with prior quarters. Overall, 13.5% of new platform private equity investments for this period had a mezzanine component. Finally, the Industrials sector was the most active for the quarter ending March 2017, followed by Services, IT, and Healthcare.
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.
Canal Holdings provided senior subordinated debt and preferred equity to support the November acquisition of Micorp Custom Auto & Truck, LLC (“Micorp”) by Monhegan Partners. Micorp, located in Auburn, MA, wholesales and installs automotive aftermarket accessories.
Ironwood Capital made a mezzanine debt investment in Farmington, CT-based Turbine Technologies Inc. (“Turbine”) in August. Turbine manufactures aerospace and industrial gas turbines
In June, AGR Partners made a growth capital investment in Almark Foods, a Gainesville, GA-based provider of egg products to retailers, convenience stores, restaurants and salad manufacturers. The deal was structured as subordinated debt with equity warrants.
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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SPS Presentation SBIA Southern PE Conference Mar 2017
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SPS Presentation Buyouts Insider Deal Sourcing Webinar July 2016
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AM&AA 2016 Winter Conference State of the Market Panel Presentation Jan 2016
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SPS Presentation Summit for Middle Market Funds Oct 2015
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Buyouts East-Boston ACG Mar 2015
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SPS Presentation 2014 M&A Market Participants
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SPS Keynote Presentation Capital Roundtable BD Conference Nov 2014
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