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.

2018 DOBR

The results of the 8th annual SPS DOBR indicate that PE firms see a median of 17.2% of their target market deal flow.

The 2018 edition includes 138 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. This year is the first where 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 first introduced last year are here to stay, allowing PE firms unparalleled granularity into their coverage of limited processes versus broad auctions, along with how to improve it going forward.

2017 DOBR

According to the 7th annual SPS DOBR, PE firms see a median of 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 2019

When comparing the LTM period ending March 31 to the same period last year, mezzanine activity declined 16.2%. Similarly, Q1’19 activity fell 11.8% from Q4’19’. The percentage of sponsor deals with mezzanine financing remained somewhat consistent at 6.5% in Q1, compared to 5.8% in Q4. Sponsor add-ons with mezzanine increased by 16.7% from Q4.

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

Northleaf Capital Partners arranged and provided both mezzanine and senior debt facilities in support of the acquisition of Emerald Textiles, an outsourced healthcare linen service provider.

Q2 2018

Patriot Capital provided mezzanine debt in support of Aterian Investment Partners’ acquisition of Vander-Bend Manufacturing.

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.

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