View this email online 

Rainier Partners, Pfingsten Partners and Southfield Capital show lower middle market alive and well

Good morning, dealmakers. MK Flynn here with today’s Wire.

As I sip my morning coffee, I’m pleased to see a bunch of lower middle market deals percolating nicely.

This is a year when smaller deals count for a lot. More on that thought, below.

Proving the point, you’ll find news from Rainier Partners, Pfingsten Partners and Southfield Capital, below.

But not all is calm across the deal landscape these days. A recent report identifies M&A dispute hotspots. We’ll take a look at the findings.

But first, let’s dip into the lower middle market.

Outperformance potential

I came across an interesting conversation about the lower middle market on EisnerAmper’s Trends Watch. It featured Michael Trihy, director/portfolio manager, Bow River Capital, talking with Elana Margulies Snyderman, director, Eisner Advisory Group.

Upgrade to the premium version of the Wire to read all about it.

To that end, check out these lower mid-market deals reported this morning by our Iris Dorbian. 

Under the rug

Rainier Partners, a Seattle-based PE firm backing lower middle-market services businesses, has made a majority investment in SCI Flooring, a floor covering services provider with customers in the Midwest.

Lights, camera, action

Environmental Lights, a portfolio company of Pfingsten Partners, has acquired Carlstadt, New Jersey-based City Theatrical, a maker of LED lighting products, control technology and accessories for theater, stage, TV, film and live event applications. 

Name recognition

Franchise FastLane, which is backed by Southfield Capital, has acquired Denver-based Raintree Franchise Growth, a firm specializing in brand development for franchisors. 

Dispute hotspots

Growing regulation and financial market volatility are fueling M&A disputes in an uncertain deal market, finds Berkeley Research Group’s Mid-Year M&A Disputes Report 2023.

Subscribers to the premium version of the Wire may read all about the findings.

That’s a wrap for today. Buyouts’ Chris Witkowsky will be with you tomorrow for Wednesday Wire, and I’ll be back on Thursday.

Happy dealmaking,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

The global head of the private equity group at Cerberus Capital, Robert Warden, stepped back earlier this year from the leadership role, sources told Buyouts.

New Private Market’s annual Impact 50 list shows that the public pension funds of Republican states including Texas, Florida and Missouri are backers of some of the world’s biggest impact fund managers. It is a sign that despite the ESG backlash from these states’ political leadership, their treasuries and investment teams are nevertheless subscribers to sustainability-focused investment propositions.

Arctos Partners is aiming to apply its expertise in partnering with sports teams and franchises to the alternative asset management industry with the launch of a strategy that will address a wide range of GPs’ financing needs. (Private Equity International)

San Antonio Fire & Police Pension Fund may commit up to $85 million annually to private equity through 2029, according to its latest pacing plan. (Buyouts)

A former Goldman Sachs executive has founded PlumTree Capital to provide finance solutions for SMEs in the UK and Europe. (Private Debt Investor)

Golub Capital Private Credit Fund, a non-traded business development company, broke escrow on 30 June 2023 with about $650 million in net proceeds. (Private Debt Investor)

The New York bankruptcy court has ordered the sale of SVB Securities and related assets of the SVB Financial Group estate for over $81 million, according to court documents and New Generation Research. (Private Debt Investor)

Harmonix is currently trying to raise capital for its third fund, having recently closed a modest “roughly $20 million” second fund. The La Quinta, California-based firm invests in life sciences, healthcare and deep-tech infrastructure companies primarily based in the US. (Venture Capital Journal)