Reflections on 2011 and Prognosis on 2012

Mergers & Acquisitions As a member of the Association for Corporate Growth (ACG), I was asked last week to give my reflections on 2011 and my prognostications for 2012, to be published in the December issue of Mergers and Acquisitions Journal.

Here is what I submitted:

Jeffery Sweeney, CEO and Managing Director, US Capital Partners, ACG Los Angeles

Our business at US Capital Partners grew about as expected and seems not to be correlated with the general economic trends, at least as reported in the popular media. This is because of our market segment in small-cap and lower middle market debt financing, which is underserved generally. 

Deal activity was stronger than anticipated, considering that borrowing in general was considered weak. We have a specialty in credits for smaller and lower middle market companies. The credit markets are quite fragmented in this space and are not quite as efficient as the middle market, so there are more opportunities for those who know what they are doing here and can reach the borrowers.

I generally expect market conditions to improve. I think we have had most of the bad news this year, dragging the general US and world economy. The election year will bring frantic pump-priming as usual, although it should have been in full swing by now. Additionally, the Euro zone will probably have its finance issues worked out by the end of this year, so that the deck is clear for growth in 2012.

US Capital Partners, LLC is a division of Breakwater Investment Management, LLC. Click here to see what Saif Mansour, founder and Managing Partner of Breakwater Investment Management, submitted.