Fundamental changes in financial markets and the global economy in recent years have created many challenges for investors looking for reliable sources of growth and diversification. Amid a more muted outlook for public equities, the private U.S. middle market may serve as a diversified source of growth within investors’ portfolios.
Sizing up the opportunity in the U.S. middle market
The U.S. middle market has served as a driving force of the domestic economy for decades, representing one-third of private sector gross domestic product (GDP) and employing approximately 48 million people. The U.S. middle market continues to thrive in the post-pandemic era with strong improvements in overall company performance and increases in revenue and employment growth.
The middle market is highly diverse spanning across industries and within sectors that are critical to our national infrastructure, including manufacturing, construction, health care, capital goods and financial services. Nearly 80% of middle market companies are privately held, creating both opportunities and hurdles to accessing the return potential of investing in the middle market.
