How Midsize Companies Can Access Capital in Turbulent Times

For the past year or more, all kinds of economic warning signs have been flashing for business leaders — rising interest rates, falling stock prices, the growing risk of recession. In times like these, cash is king. You might need it to protect yourself in a storm; or, you might want cash because you have a chance to play offense. But how will you line up those funds? Investments in middle market companies from private equity firms has drifted downward over the past 10 years while lending to middle market companies has fallen nearly 60% over the past year. What’s more, you cannot rely on commercial banks for your lending needs the way you probably used to do. Under the current circumstances, getting a good deal on new capital is not going to be like it was during the past “cheap money” environment. This article offers advice for mid-market companies trying to raise capital in uncertain times.