Firms Ready to Write Larger Checks for Equity Investments: Huntington's Davies

The video discusses the high valuations in the private equity sector, noting that despite these valuations, there is little pushback from firms due to the abundance of 'dry powder' or available capital. The discussion highlights the role of credit markets and direct lenders in facilitating larger deals. Concerns are raised about potential market shifts if profits don't keep pace with valuations, especially in cyclical sectors. The video concludes with an optimistic outlook for middle market activity in 2020, expecting it to mirror 2019, with certain sectors like fintech and healthcare pushing the edge.

In which sectors might investors need to focus more heavily to avoid cyclical risks?

What are the expectations for private equity activity in 2020 compared to 2019?