Middle Market Deals...a Convergence of Capital!

Middle market companies are attracting disparate investors these days, and the Capital MatchPoint was right on target when I wrote we're seeing an influx of these types of capital providers on the site. Traditional roles are being reversed. What's happening here?
The convergence of private equity firms and venture capitalists is a very new phenomenon. Traditionally, private equity firms have funded larger deals and, with credit harder to locate, these firms are looking for smaller propositions, while venture firms are seeking out more mature deals, as they are now perceived to be less risky although more capital is likely to be needed. This makes good sense to diversify and lean away from having front end loaded investments with a murkier time to exit.
Meanwhile, private equity firms that were making money investing in leveraged, traditional and established companies are now having to look for returns from deals that need more upfront capital invested in high growth companies. While this happens, both the private equity and venture firms are now becoming competitors. The upshot? The amounts paid for M&A!
The view? Both private equity firms and venture companies need to work with each other as well as compete against each other. Both have capital to spend, the capital markets are tight and the potential beneficiary looks like the middle market segment particularly in the pharma, telecom and high tech areas.
The Capital MatchPoint saw this trend developing as more and more investors have subscribed to the site that fit these investment criteria almost perfectly. Capital needs meet capital providers! http://www.nuquestinc.com/