Flat Rock Capital

Continued Growth of the U.S. Middle Market

The U.S. middle market corporate sector nearly doubled in size since 2011 and led the U.S. out of the last recession. These firms represent a growing investment opportunity for credit investors. Despite comprising less than 1% of all commercially-active firms, middle market companies employ more than one quarter of all U.S. workers and generate more than one quarter of all revenue produced by U.S. businesses. Between 2011 and 2017, while the overall number of commercially-active firms declined, the number of middle market firms nearly doubled, as did revenues and employment at these firms. More than half of the new jobs since 2011 have come from middle market enterprises alone. Trends and optimism among middle market executives remains strong heading into 2018, with growth rates far exceeding those of large and small cap peers.

About the Author

Robert Grunewald is CEO and Founder of Flat Rock Global, LLC.
Mr.Grunewald has over 25 years of experience with middle market finance, BDCs and asset management. Within the finance industry, he has participated as a lender, investment banker, M&A advisor, private equity investor and hedge fund manager. Flat Rock Global, LLC is an alternative asset manager. The firm develops yield-driven investment strategies focused on asset classes deemphasized and currently underserved by the banking sector. Flat Rock Global expects to launch its initial fund, Flat Rock Capital, in early spring, focused on making first lien, senior secured loans to middle market companies.