Continuous Improvement in a More Expensive World

Middle-market companies have rebounded in the near term with earnings growth, but as the cost of capital has increased, there is much that private equity backers can do to push profitable growth in their manufacturing businesses.

As uncertainty continues to cloud the U.S. macro picture, there was a rare piece of good news recently about the performance of the backbone of the economy – private middle-market companies. In the fourth quarter of 2022, companies in the Golub Altman Index (which includes between 110 and 150 companies in the Golub private lending portfolio) saw 9% earnings growth and 11% revenue growth over the same period in 20211.

In this article, Gary Hoover, VP of TBM’s Global Private Equity Practice, outlines the most important steps private equity firms can take to improve productivity and reduce working capital.

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