THE DEAL ANALYZES WHY MORE INSTITUTIONAL MONEY IS FLOWING INTO MIDDLE-MARKET DEALS

The magazine's second edition since its inception carries 33 ads in a 78-page issue

November 11, 2002--New York, N.Y.--The Deal, the newsweekly that serves the deal community with news, statistics and analysis, today features a special report on the middle-market buyout sector, a marketplace where there is more capital than ever chasing after deals.

In the introduction to Special Report: Middle Market, "Too much money?" senior writer Vyvyan Tenorio describes the allure of middle-market private equity funds for the institutional investors. Pension fund managers are enthusiastic about the sector's yields, which provide far better returns on their investments than those placed in public equity. Funds in the range of $250 million to $500 million have become increasingly attractive over the last two years.

Reporter Kelly Holman observes the current climate of the lending market in "The deal pyramid." Lenders, who provide the leverage for the deals to get done, have been more inclined to finance in "more predictable" or "safe" industries, one of them being the food sector. Holman writes, "Loan market professionals generally view syndications of food-related businesses favorably because of their consistent cash flows and other lower amounts of leverage." A spate of food-related private equity deals mentioned throughout the article provides support of the trend.

The Jordan Co. a private equity shop that recently closed a $1.5 billion fund, The Resolute Fund LP, in less than six months is the focus of a story by assistant managing editor Alison Rogers. "Traditional LBO shops are back in style," Rogers writes, "but not every fund sells LP spots as though they were hot concert tickets." Jordan's co-founder David Zalaznick told Rogers, "Most funds rely on senior partners to sell the fund... and we had six principals selling, not just two. As a result, we could cover more institutions in a shorter period of time."

The special report also provides insight into real estate funds that have proliferated in a tough environment in "Property opportunities." Reporter Jonathan Berke highlights several firms, ranging from highly targeted boutiques to more traditional outfits that are active in real estate investments in the U.S. and abroad.

The special report also carries a table ranking U.S. middle-market deal arrangers for the first nine months of 2002 and a chart listing private equity funds closings for the past 12 months

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The Deal is a diversified media company dedicated to providing must-read financial news, commentary, data and services to corporate and financial dealmakers, their advisers and investors worldwide. Through The Deal, The Daily Deal, TheDeal.com and Corporate Control Alert, the company gathers, reports and disseminates information that offers a detailed look at transactions, industry sectors and financial services, along with the personalities and players who are the central figures driving change in the global economy. Investors in The Deal, a privately held company, include majority owner U.S. Equity Partners, a private investment fund sponsored by Wasserstein & Co. LP, and Rustic Canyon Ventures, one of the largest venture capital funds in Southern California.