Bloomberg Surveillance · Friday, August 28, 2026
Mitch Berlin noted that significant valuation gaps between buyers and sellers are hindering large private equity deals, primarily due to high borrowing costs. However, activity in the middle-market PE sector remains robust, as these firms have maintained consistent engagement throughout various market conditions.
“You are right. There's still about $ 2 trillion in dry powder that's waiting to be invested.”
“The issue there is the valuation gaps between the buyer and the seller.”
“To justify the deals with the cost of capital being so high, The seller has to sell a lower rate, but the seller isn't willing to do that.”
“And so you're still seeing a gap around big PE deals between the bid and the ask there.”
“I do see a lot of activity in middle market. Middle market PE never took their foot off the gas, and that's been consistent through COVID up until now.”