June 2022 Middle Market Monitor

Economic indicators revealed uncertainty in May, as the unemployment rate remained constant at 3.6% and the labor force participation rate increased. The Consumer Confidence Index decreased as the United States continues to experience record-high inflation led by oil prices which rose 9.5% in the month of May. The S&P 500 fluctuated significantly through the month but rallied at the end of the month to end with a slight gain. Most major indices made new 52- week lows during the month, despite finishing close to unchanged. Earlier in May, the Federal Open Market Committee instituted an interest rate rise of 50 basis points to fight soaring inflation. On a month-over-month basis, total middle-market M&A activity and leveraged buyouts increased slightly. Due to large amounts of capital chasing deals and a limited supply of high-quality companies in the market, the outlook for middle market M&A transactions remains optimistic for the foreseeable future.