LP enthusiasm for US mid-market buyouts on the rise
In the post-2021 deal environment, investing in the US mid-market has drawn more attention, including among limited partners.
Survey after survey has attested to a greater LP appetite for mid-market strategies. A Coller Capital survey done in 2023 found 82 percent of institutions saying they expected mid-market buyouts to offer good opportunities to general partners in the next two years. Eighty-one percent said the same of lower mid-market buyouts.
This year’s institutional survey by Probitas Partners had a similar finding. US mid-market buyouts topped a long list of global private equity sectors of interest, followed by US small-market buyouts.
In addition, several LPs have recently shifted their focus toward smaller managers, among them California Public Employees’ Retirement System, New York State Teachers’ Retirement System and Teacher Retirement System of Texas.
Another measure of this sentiment is seen in the recent close...