How small and mid-market buyouts can help to unlock growth and resilience
In a new video interview, Benjamin Alt explains how small and mid-market buyouts are well positioned to be a positive contributor to portfolio resilience and returns in an era of uncertainty, and amid a cyclical slowdown in fundraising, deals and exits.
That we are living through a period of heightened volatility and uncertainty is well documented – as is the fact that private investors are facing a more complex market environment amid a period of slower fundraising and deals, and narrower exit options.
In this market context, small and mid-market buyouts, which are driven by fundamental value creation and benefitting from a number of both structural and cyclical tailwinds, could be well positioned to help unlock portfolio resilience and growth.
That was the insight shared by Benjamin Alt, Global Head of Private Equity Portfolios at Schroders Capital, in a new video interview. Specifically, Benjamin shared six key factors that support the value creation potential of small and mid-market buyouts:
- Attractive entry valuations: Small-mid buyouts typically transact at materially lower purchase price multiples, offering compelling starting points for value creation.
- Strong transformation and growth potential: Smaller companies often have greater capacity to innovate and transform when backed by experienced private equity partners with deep operational expertise.
- Lower financing risk: With significantly less leverage than large-cap deals, these transactions are less exposed to refinancing pressures and can demonstrate stronger durability through cycles.
- Breadth and diversification: Representing roughly 90% of global deal activity, the small–mid market offers a vast and diversified opportunity set.
- Healthier competition: Fundraising and dealmaking conditions remain more balanced than in crowded large-cap markets, supporting more attractive entry pricing.
- Access to local champions: Many small and mid-sized companies generate most of their revenues domestically, helping insulate portfolios from global trade frictions and geopolitical volatility.
Watch the video to hear all of the Benjamin’s insights – and read our white paper for more information on the structural and cyclical tailwinds driving this dynamic market segment: URL
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