More add-ons in the MM
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The ratio of add-ons in the middle market is increasing, according to PitchBook’s Q2 2022 US PE Middle Market Report. That’s been an evergreen trend for the past decade, but it appeared to go into overdrive in 2022. Add-ons now account for 73% of all middle market activity, up from 67.5% last year. One of the hallmarks of 2021 was a rush to buy new platforms—in the buy-and-build era, when LBOs increase, the add-ons aren’t far behind.