Because they lack the visibility of large-cap publicly traded companies or the well-known narrative of struggling small business owners, middle market companies are often ignored.
Yet, when the nation is in dire need of economic recovery, ignoring the middle market may be a mistake. Private equity investors, consultants, lawyers, and many others working with middle market companies are increasingly joining the chorus: if you want growth — and opportunity — look to the middle.
What is the middle market?
By general consensus, ‘middle market’ refers to companies with annual revenues between $5 million and $1 billion.
The sector is a huge piece of the economy, generating approximately $6.1 trillion in annual revenue — 40 percent of GDP. It’s also the nation’s bread and butter, employing 24.6 million people, more than all of the S&P 500companies combined, according to recent Deloitte research .
While diverse, they also tend to have two things in common: they are predominantly US-based and private, or family, owned.
How do you invest in middle market companies?
Because the are so often closely held, mid market companies are often out of the purview of the investing public.Page 1 of 4 | Next Page