Why Is Mid-Market Investing Back? Find Out with Maria Sanz Garcia, YIELCO Investments

Why It Matters

Mid‑market value deals offer investors higher upside with less competition, while operational focus and LP transparency become critical success factors in a volatile macro environment.

Key Takeaways

• Mid‑market value investing resurges amid high rates and low competition.
• Operational expertise, not market timing, drives returns in lower‑mid segment.
• YIELCO targets industrial, business services, consumer firms over tech‑heavy sectors.
• US offers scale; Europe provides fragmented niches with higher upside potential.
• LPs demand transparency and active dialogue with managers for fund success.

Summary

Maria Sanz Garcia of YIELCO Investments explained why mid‑market private equity is experiencing a resurgence at Super Return International. After two decades of large‑cap focus, YIELCO shifted to the lower‑mid market, attracted by cheaper valuations, cheaper leverage and the ability to create value through operational improvements rather than relying on market timing.

Garcia highlighted that today’s environment—rising interest rates, geopolitical uncertainty, and AI‑related risk—makes buying high and selling higher unrealistic. Instead, YIELCO seeks companies that can be bought at 4‑times EBITDA and sold at around 8‑times, emphasizing cost‑side initiatives, hands‑on operational teams, and managers who embed themselves in day‑to‑day roles such as interim CFOs.

The firm concentrates on “old‑economy” sectors—industrial, business services, and consumer—where competition for deals is softer than in software or high‑growth tech. Geographically, the U.S. offers a large, dynamic pool of targets, while Europe’s fragmented market yields outsized returns for specialist, regional managers. Garcia also stressed that limited‑partner relationships must be transparent and candid, with LPs expecting active dialogue and rigorous oversight.

For investors, the mid‑market presents a compelling blend of attractive pricing, operational upside, and lower deal‑flow competition, suggesting a return to the fundamentals of private‑equity 1.0. Success will hinge on partnering with managers who can execute deep operational turnarounds and maintain open communication with their LP base.

Original Description

After years of tailwinds, private equity is entering a new era. At SuperReturn International, Maria Sanz Garcia, Head Private Equity & Member of the Executive Committee, YIELCO Investments, shares why the mid-market is back in focus and what it takes to win in today’s tougher environment. Where are the real opportunities hiding right now? And what separates top-performing managers from the rest? From rising interest rates to shifting deal dynamics, this conversation explores how investors are adapting and why the next 12–18 months could redefine private equity fundamentals.

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00:00 Welcome and Introductions

00:27 Why Mid Market Now

01:46 Value Creation Playbook

02:35 Operators in the Trenches

03:37 Sector Focus and Old Economy

04:44 Europe vs US Deal Dynamics

05:53 What LPs Want From GPs

07:17 Why Now Is Exciting

08:29 Closing Thanks and Wrap