RT Journal Article SR Electronic T1 Private Equity Investing JF The Journal of Private Equity FD Institutional Investor Journals SP 47 OP 58 DO 10.3905/jpe.1999.319952 VO 2 IS 3 A1 Timothy G. Kelly YR 1999 UL https://pm-research.com/content/2/3/47.abstract AB Although not subject to easy quantification, the middle market offers a number of characteristics that should continue to make it the desired placed to invest when considering private equity investments on the basis of capitalization. These characteristics include greater earnings potential as a result of installing better and more sophisticated management, implementing improved “best practices” management techniques, and improving business fundamentals as a means to position the company for, and allow the company to undergo, aggressive growth opportunities. Opportunities exist to generate returns of greater than 20% net through a well-managed middle market fund investment program. The magic mix combines talented sponsors with proven track records of generating above-average investment returns, a market that offers attractive buying opportunities and pricing to middle market buyers, and a fund-raising environment with larger funds competing aggressively for a limited number of larger transactions.