Looking Positive for Private Equity in Lower Middle Market in 2023

  • Private equity
  • 1/18/2023

The outlook for private equity in the lower middle market in 2023 is looking positive. With the global economy continuing to recover from the pandemic, there is an i...

The outlook for private equity in the lower middle market in 2023 is looking positive. With the global economy continuing to recover from the pandemic, there is an increased appetite for investments in this sector. Private equity firms are looking to capitalize on the opportunities presented by the lower middle market, which is characterized by smaller companies with limited access to capital.

The past two years have been a wakeup call for supply chains, yielding manufacturers located close to markets a competitive advantage.  In recent months availability has been less important than price.  We believe there will be strong demand for re-shoring and near-shoring in the coming years as companies seek to bring supply chains closer to customers.  Private equity is expected to flow to manufacturers having these competitive advantages.

The lower middle market is expected to benefit from the continued growth of the global economy, as well as the increasing demand for products and services from small businesses. This is likely to lead to increased investment in the sector, as private equity firms look to capitalize on the potential for growth.

In addition, the lower middle market is expected to benefit from the increasing availability of capital. Private equity firms are increasingly looking to invest in this sector, as they recognize the potential for returns. This is likely to lead to increased competition for investments, which could drive up valuations and lead to higher returns for investors.

Finally, the lower middle market is expected to benefit from the increasing focus on sustainability. Private equity firms are increasingly looking to invest in companies that are committed to sustainability, as they recognize the potential for long-term returns. This is likely to lead to increased investment in the sector, as private equity firms look to capitalize on the potential for growth.

Overall, the outlook for private equity in the lower middle market in 2023 is looking positive. With the global economy continuing to recover from the pandemic, there is an increased appetite for investments in this sector. Private equity firms are looking to capitalize on the opportunities presented by the lower middle market, which is characterized by smaller companies with limited access to capital.

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This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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