NEW YORK--(EON: Enhanced Online News)--The capital markets are eager to provide liquidity to middle market companies in growing sectors of the economy, according to Neil Wessan, Group Head of CIT Capital Markets at CIT Group Inc. (NYSE:CIT) cit.com, a leading provider of financing and advisory services to small businesses and middle market companies. This view, and others, are presented in “Capital Markets and The Middle Market” (cit.com/wessan), the latest in a series of in-depth executive video Q&As featured in the award-winning CIT Executive Insights video series (cit.com/executiveinsights).
“If you think about the sectors in our economy that are really utilizing capital—energy, healthcare, transportation—that’s where I think for us there’s a great opportunity.”
Capital Markets are Open for Business
“If I had to use a word to describe the current state of the capital markets in the middle market, I would just say open—you know, open for business,” said Wessan. “There’s tremendous liquidity in our market right now. It’s a very fluid market, available to almost anyone who wants to raise capital today.”
He adds, “If you think about the sectors in our economy that are really utilizing capital—energy, healthcare, transportation—that’s where I think for us there’s a great opportunity.”
Economic Uncertainty and Regulation Concern Executives
Middle market executives continue to grapple with economic uncertainty and the current regulatory landscape, comments Wessan. “In terms of what keeps the middle market CEO up at night, I think most of it has to do with the general economy. There’s no real clear path right now and I think that is the biggest frustration.”
On the regulatory front, “Middle market companies are dealing with the same issues that the larger companies in the market place have to deal with, except they don’t have the same resources,” explains Wessan.
Pickup in M&A Activity on the Horizon
Commenting on the outlook for M&A activity, Wessan says, “The reality is that there’s still a gap between the buyers and sellers, especially focused in the middle market.”
He continues, “I think it’s going to be somewhere between 12 and 24 months before that gap is eliminated. I think what will happen is eventually buyers will start bidding up and that’ll close the gap. But it’s going to take a while."
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About CIT Capital Markets
CIT Capital Markets is a leading provider of financial products and services to corporate institutions around the world. The group raises capital for CIT clients and distributes loans and other debt and equity products to investors. With access to state-of-the-art technology and a commitment to superior execution, it provides the highest possible level of service and industry knowledge. cit.com/capitalmarkets
Founded in 1908, CIT (NYSE:CIT) is a bank holding company with more than $35 billion in financing and leasing assets. It provides financing and leasing capital and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and vendor finance. CIT operates CIT Bank (Member FDIC), its primary bank subsidiary, which, through its online bank BankOnCIT.com, offers a suite of savings options designed to help customers achieve a range of financial goals. cit.com