The lower middle market has seen an increase in activity as the U.S. economy continues its recovery. And while a number of factors have brought attention to the lower middle market among limited partners (LPs), now it seems that inactive funds are contributing to that trend.

According to a recent article in Mergers & Acquisitions, many M&A professionals say that LPs are looking to make larger investments in fewer funds. The number of private equity firms with inactive funds is currently high, and will likely lead to some unhappy LPs.

With investors more cautious about returning to large funds, the stage is set for the lower middle market to experience an upswing in activity in the near term.

To read the article in Mergers & Acquisitions, click here.

Mergers & Acquistions