What’s worrying mid-market leaders: Abundant capital and finite deals

We gathered seven C-suite executives from mid-market firms to find out what is currently on their minds.

LPs are looking for “continuous collaboration” and “constant communication” with GPs, according to a panel of CEOs, CFOs and assorted mid-market leaders. We gathered (virtually) seven prominent C-suite executives and asked them about the biggest challenges they face and the issues that keep them up at night.

What is the biggest challenge for the next few years? Almost unanimously, the answer to this was the amount of capital competing for deals. “Since the great recession, a winning PE strategy has been to buy great companies for whatever it takes to prevail and then benefit from expanding multiples on exit,” said Littlejohn & Co president Brian Ramsay. “This approach has become a very crowded trade, however, and PE buyers have started to stretch their definition of ‘great’ to include companies with more complex stories.”

How is the LP-GP relationship changing? They are not just clients, they are now partners.

What’s keeping the leaders up at night? It varies from the risk of “somebody doing something stupid” from a compliance perspective, to worries about dramatic political shifts.

We’ll bring you some more tomorrow. In the meantime, here is some more detail on the Oak Hill’s minority stake sale to StonyRock Partners.

Email prepared by Toby Mitchenall.