Private Capital/Equity Trends for the Small to Medium Size Businesses

Private Equity Portfolio Company Exits activity falls way short of the past 5 year’s performance. Shy of recent years. The US PE middle-market firms exited 876 investments in 2018, the lowest since 2013 and a 14.9% decline from 2017. Exit value likewise hit a six-year low, falling 10.5% year over year to $187.6 billion.

Additionally, exit activity has been trending downward since 2014, with much of the reduction due largely to the lack of operational expertise that Private Capital provides, especially to asset light and people intensive service businesses.

The ability to create growth, a capability, and scalable business model, and wealth is, at the end of the day, a marriage of the founders & leaders’ skill, combined with capital sources that conterminously and collectively “adds value” to the business model and its stakeholders. At Ephor, capital that adds value beyond the $’s , we refer to as “Useful Capital” .

Additionally in our nearly 2 decades of advising, investing and developing transformation service business models, we have learned success is an outcome of an effectively planned and executed business strategy, coupled with the knowledgeable and experienced operational leadership, combined with the deployment of “Useful Capital”.

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