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2015 Middle Market Private Equity Outlook


January 2015

An abundant supply of capital and competition to identify and close quality investments frames CohnReznick’s “2015 Middle Market Private Equity Outlook.”  While the industry is poised for the challenges that accompany a competitive deal-making environment and heightened regulation, the outlook for this year exudes expansion. 

Driven in part by new perspectives on longstanding issues as well as new insights on game-changers, CohnReznick presents trends, opportunities and challenges on this next 12-month horizon that will propel PE firms to undertake substantial shifts in strategy in order to better compete.

In brief, we foresee competition for quality deals and steep valuations to be continuing forces of pressure for middle market private equity firms. We anticipate that these are some of the topics that may influence the strategic direction of private equity during this year:

  • Enhanced interest in single investor funds – Demand from large limited partners, including pension funds, endowments, and insurance companies is driving the creation of single-investor funds designed to capitalize on lower management fees,
  • A shift to European-style diligence – Pre-sale due diligence, driven by investment banks and savvy sellers, is speeding up the deal process for private equity funds and dramatically altering the manner and pace in which deals are closing, and
  • Emphasis on middle market investments Private equity is expected to focus resources on middle market acquisitions and value building due to the explosive growth potential of that segment.


The 2015 Middle Market Private Equity Outlook underscores strategies that middle market PE firms can adopt in order to best compete for deals and optimize the value of their portfolio. It also identifies and analyzes the activity drivers, opportunities, challenges, and key issues that will make a difference to executives in the following key industries: construction, hospitality, manufacturing and wholesale distribution, technology, retail and consumer products, and healthcare.


This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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