PPB in the News: Unlock Alpha in Mid-Market Private Equity
March 16, 2025
Why Mid-Market Private Equity Outperforms
Mid-market private equity (MMPE) offers significant advantages for investors, typically delivering stronger returns than large-cap private equity. This outperformance stems from several factors, including more favorable valuations, greater opportunities for operational improvements within target companies, and the ability to capitalize on niche market growth.
Frank Burke and Jack Gray share their thoughts into these benefits in the context of unlocking alpha in the private equity market.
Insight from Frank Burke, Chief Investment Officer and Jack Gray, Associate Analyst at PPB Capital Partners
Key topics covered:
- MMPE’s potential for higher returns compared to large-cap private equity due to better price discovery and value creation.
- The ability of MMPE managers to significantly impact portfolio company revenue and profitability.
- The large number of investment opportunities available in the middle market, contributing to diversification.
- How MMPE can serve as an effective means for diversifying client portfolios and generating uncorrelated alpha.
- The idea that the middle market in private equity is often overlooked and undervalued, leading to unique investment opportunities.
