Lower Middle Market Investments in Private Equity

Abstract

Private equity firms are responsible for some of the largest, generally exclusive investment strategies for pension funds, endowments and foundations, family offices, and other institutional investors. In order to generate returns known for being significantly higher than public investments, private equity general partners use a variety of strategies. However, such returns don’t come easily. This article will concisely overview and evaluate lower middle market investments ($25-100M) in private equity, and the management’s process. The research consists of an internship with a leading firm in the lower middle market investment category for private equity as well as independent research. Different strategies of private equity firms will be covered, but it is important to note that each strategy covered remains relative, and depends on the process followed by each individual firm.