Monomoy’s 2H 2025 Business Development Update: A Market in Transition
Middle-market M&A in 2025 didn’t freeze — it shifted. Deal flow slowed, but more importantly, it moved in specific directions.
Our 2H 2025 Business Development Update, compiled from Beacon, our proprietary sourcing engine, tracks thousands of middle-market processes and shows a market becoming more selective and increasingly driven by non-traditional deal sources.
What the Data Shows
Deal composition changed significantly. Sponsor-to-sponsor activity declined while bankruptcy-driven and public company opportunities rose. Transaction size bifurcated: some EBITDA bands hit multi-year highs for deal flow while others saw elevated no-trade rates.
Sector performance diverged. Several industries reached four-year highs in deal flow. Others hit four-year lows. Execution remained challenging, with broken auction rates approaching historical highs.
Our forward-looking Deal Compass reveals where pipeline activity is building and where it’s contracting heading into 2026.
Perspectives: What Stood Out in the Data
Renn Iaboni, Monomoy Managing Director and Head of Origination, and Drew Davis, Investment Team Director, share what stood out most in the data and what it signals for 2026.
To further discuss our 2H Deal Flow report, Monomoy’s investment strategy or potential acquisition opportunities, please contact a member of our Business Development Team:
Renn Iaboni
Managing Director
riaboni@mcpfunds.com
John Miller
Director
jmiller@mcpfunds.com
Mary Winston Richardson
Vice President
mrichardson@mcpfunds.com
Will Prout
Associate
wprout@mcpfunds.com
This presentation is for informational purposes only and should not be treated as research or investment advice. Certain information contained herein has been obtained from published and non-published sources and has not been independently verified by Monomoy or its affiliates. The information contained herein is subject to revision and does not purport to be complete. This document speaks as of the date hereof or as of the specific date(s) noted herein, as applicable, and Monomoy undertakes no obligation to update any of the information contained herein. Statements contained in this presentation are based on current expectations, estimates, projections, opinions and beliefs of the investment team of Monomoy as of the date hereof unless stated otherwise. Such statements involve known and unknown risks and uncertainties, and undue reliance should not be placed thereon. Neither Monomoy nor any of its affiliates make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein should be relied upon as a promise or representation as to past or future performance. Certain information contained in this document constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual results may differ materially from those reflected or contemplated in such forward-looking statements. Any forward-looking events discussed in this presentation may not occur.
