Lenders said they expect 2021 to be a “very strong” year for middle-market M&A in the afternoon keynote panel of Mergers & Acquisitions’ The Best in M&A Speak virtual event, where we announced the winners of the 2021 Top 10 Middle-Market Deals of the Year. Editor-in-chief Mary Kathleen Flynn moderated the panel, which included: Ted Koenig, CEO, Monroe Capital; Timothy Lyne, chief operating officer, Antares Capital; and Chris Taylor, CEO, Madison Capital Funding.
“Investment bank pipelines right now are at record levels,” said Antares’ Lyne. “Biden’s tax plan, as it relates to capital gains, is going to force more selling. Overall deal volume is really strong, company performance is very strong, and GDP is likely to be north of 6 percent. I am a little worried about the impact of inflation.”
“From a lending perspective, portfolios generally are pretty healthy,” said MadCap’s Taylor. “People are pretty confident in the portfolios they manage. The overall confidence levels, whether you’re financing the deal or actually the sponsors buying the deal, are probably higher than anyone would have anticipated a year ago.”
“It’s a relationship-based business that we all operate in, and the need to interact with people not only in our own firms but with each other is really important,” said Monroe’s Koenig. As the U.S. opens back up after more than a year of quarantine, lenders are eager to get employees back into the office by September.
For the full discussion, watch the video above. And click here for 2021 Top 10 Middle-Market Deals of the Year.
