Tracking the resiliency of mid-market investment banking deal flow

Investment bankers remain essential partners to help private equity firms source, structure, and execute deals, particularly for firms focused on mid-sized deals.

Our data show that the investment banking channel closes the most deals with private equity firms in the $50 - $250 million in enterprise value range. This channel is also incredibly resilient, even in challenging macroeconomic conditions.

TruSight has clear visibility on this important channel because of the market intelligence generated by our data team at Private Equity Info. For more than 25 years, the team at PEI has tracked more than 130,000 of private equity transactions and the investment banks and law firms that advise them.

Private Equity Info's market intelligence and transaction data powers TruSight's Intermediary Coverage deal sourcing service, which connects private equity firms to thousands of investment banks. Many investors already rely on their investment banking network, but few have the consistency, structure, or data to surface the right opportunities from the long-tail, week after week. With Intermediary Coverage, investors see more relevant deals, scale their mid-market coverage and receive curated deal flow.

What is PEI's data telling us about recent trends in the investment banking channel?

Looking at private equity platform investments, the initial acquisitions through which private equity firms establish a strategic foothold in a sector, gives us clear visibility about how this channel has shifted over time, which you'll find in this report.

For private equity firms, cultivating strong ties within the investment banking community is not simply advantageous, it’s essential as a generator of consistent, targeted deal flow. The majority of quality deal opportunities are still intermediated. Firms that maintain active, trusted relationships with bankers consistently gain early visibility into transactions, industry trends, and nuanced shifts in the marketplace.

Quarterly changes in intermediary-led platform investments

Quarterly data shows clear turning points in PE–IB engagement from 2018 through 2025, reflecting how capital markets, global trade policy, and investor sentiment shaped deal activity. 

Naturally, there are many additional intermediary-led platform transactions for which the advising bank is unknown. As a result, the figures in this study represent a verified subset of total market activity but are still representative of overall trends. Data reflects only platform investments where the investment bank is known.

The trends shown above follow the macroeconomic patterns we've tracked in many other data studies:

• 2020: COVID-19 disrupted global dealmaking: Pandemic shutdowns brought PE–IB transactions to a standstill, marking the steepest quarterly contraction
• 2021: Liquidity surge fueled record activity: Abundant credit, low interest rates, and pent-up demand produced the highest level of PE–IB collaboration
• 2022–2023: Inflation and rate hikes cooled valuations: Rising costs of capital led to fewer large-cap deals but sustained momentum in the mid-market, where firms adapted quickly to financing pressure
• 2024: Confidence returns amid stabilization
• 2025: Trade policy changes hamper deal activity

Mid-market resilience, even in a slowed market

The chart below, dating back to 2015, shows that mid-market private equity firms consistently lead PE–IB platform activity, maintaining deal momentum even during market slowdowns. Their adaptability and steady capital deployment make them resilient through volatile periods. 

Over the past decade, the number of banker-intermediated platform transactions in the mid-market segment consistently dominates deal volume year after year. 

Large-cap firms show sharper cycles, expanding rapidly in boom years like 2021, then pulling back as valuations and financing costs rise. Smaller funds remain steady, focusing on niche and regional opportunities. 

This sustained mid-market leadership signals where PE–IB collaboration is likely to remain strongest, in firms balancing deal volume with execution agility. 

Strategies to grow investment banking channels

Grow and maintain your network

In a market driven by trust, relationships remain fundamental. Intermediaries prefer to work with buyers they know and trust to close reliably. This is why TruSight has invested years in cultivating a network of more than 13,000 intermediary contacts. These relationships provide critical access to less broadly marketed deals that do not always make the rounds. They are the foundation of credibility and access.

Broaden the reach of your criteria marketing

To capture more opportunities, you need a scaled, systematic approach that goes beyond your immediate network. A proactive strategy ensures that you're not just waiting for deals to come to you, you're actively finding them, giving you a comprehensive view of the market. With TruSight's Intermediary Coverage, you can receive targeted deals from long-tail intermediaries through proactive criteria email marketing with high deliverability rates. 

Track recent deals in industries you cover to strengthen your outreach efforts

Having up-to-date data is invaluable for private equity firms that are hoping to stay connected with the investment banking community. No matter how strong your network is, bankers change roles, and firms change focus. The most reliable indicator? Seeing the deals that banks are closing. TruSight relies on its data team at Private Equity Info to keep up with recent transactions.

Outsource the long-tail

The path to high-velocity sourcing is not about hiring a massive, expensive business development team. It's about leveraging specialized, data-driven expertise to augment your existing capacity, allowing your investment professionals to focus solely on high-value analysis and closing deals. By partnering with TruSight, we function as an embedded deal engine, providing the relentless focus that your internal team cannot afford to spend. 

Want to discuss the data in this report and learn how TruSight can help your deal sourcing efforts? I'm always available for a call.