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.. This view, and others, are presented in “Capital Markets and The Middle Market”, the latest in a series of in-depth executive video Q&As featured in the award-winning CIT Executive Insights video series.

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."

To watch the full CIT video, click here.