When private equity makes the news, its typically large buyout firms. They buy mega companies, so unsurprisingly make for better headline material. But bigger funds are just the tip of the iceberg. Below the surface is a scaled and matured middle market.
Purchasing dynamics favor the middle market (MM). Large US buyout funds (defined as more than $2 billion fund size) manage $775 billion of dry power. That capital is chasing 4,500 large companies with greater than $500 million revenue. US buyout funds under $2 billion manage $300 billion of dry powder, and target 33 million companies with less than $500 million revenue. Standalone, the US MM is the third largest economy in the world...
Quote of the Week
“GPs are increasingly recognizing the importance of underwriting operational value creation as core parts of their deal theses.” – Global Private Markets Report 2026, McKinsey & Company.
Featuring Charts
Chart of the Week: Growth is King
Private equity returns are largely attributable to revenue growth. Source: McKinsey & Co, SPI by StepStone
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Chart of the Week: The Sweet Spot
The middle market punches above its weight. Source: State Street Private Equity Index as of 9/30/2025
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Chart of the Week: Private-Side Only
US companies that go public are opting to stay private longer. Source: Jay Ritter, University of Florida; Apollo’s The Daily Spark
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Chart of the Week: The Equity Premium
In the long-term private equity pays for more risk with better returns. Source: MSCI
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Chart of the Week: Inventory Check
Private equity remains an attractive option for investors through cycles. Source: PitchBook
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Chart of the Week: State of Returns
For over two decades private equity has outperformed public stocks in state pension plans. Source: Cliffwater
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Features
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Americas Private Credit 2026 Outlook: The Year of Maturity: Private Credit Goes Mainstream as 2021 Loans Come Due This Year Click here to read the full article. Although it is too soon to call 2026 the M&A rebound year the market has been patiently awaiting, positive trends from late 2025 are carrying over into the…
The Pulse of Private Equity – 2/23/2026
Healthcare PE deal activity Download PitchBook’s Report here. Healthcare devices & supplies was the primary driver of value growth, posting an annual increase of more than 270% YoY, supported by Hologic’s $18.3 billion leveraged buyout announced in Q4…. Subscribe to Read MoreAlready a member? Log in here...
Leveraged Loan Insight & Analysis – 2/23/2026
Software loans continue to come under pressure as investors reasses exposure to the sector Fears that AI could disrupt software companies have prompted a broad sell-off in that sector this year and the downward trend continued in the last week…. Subscribe to Read MoreAlready a member? Log in here...
PDI Picks – 2/23/2026
Volatility equals high return dispersion Private Debt Investor’s quarterly performance data shows spikes in internal rates of return – both in an upward and downward direction – in periods of turbulence. Over the last two weeks, this column has reflected on findings from our new proprietary quarterly performance reports. This week, we explore the topic…
Bloomberg: Leveraged Lending Insights – 2/16/2026
Primary Market Activity Cools Following Active January Click here to access Bloomberg’s US Leveraged Finance Chartbook After a robust start to the year that saw $168.2b in US leveraged loan launches during January, primary market activity has slowed considerably. Through Wednesday, February 18, just $25.9b of new deals have launched – marking the lowest level…
Middle Market Deal Terms at a Glance
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