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Capital Markets & Fundraising Report 2025

Equity & Debt Financing Trends for Mid-Market Companies

Detailed analysis of capital raising activity, investor appetite, valuation trends, and financing structures for mid-market companies across growth equity, mezzanine debt, and private credit. This report examines shifting investor preferences, emerging deal structures, due diligence intensity, and success factors for companies seeking growth capital in a challenging environment.

Jan 18, 202522 min2.4 MBPreview 9 pages
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Market Analysis

Capital Markets & Fundraising Report 2025

Equity & Debt Financing Trends for Mid-Market Companies

Jan 18, 2025

Executive Summary

Growth equity fundraising declined 24% YoY by deal count but average check sizes increased 18%, reflecting investor shift toward later-stage, profitable companies with proven business models.

Key Findings

1Private credit emerged as preferred financing source for growth companies, with deal volume up 34% YoY as traditional bank lending contracted.
2Median pre-money valuations for growth equity declined 28% from 2021 peaks but stabilized in H2 2024, signaling market recalibration.
3Revenue-based financing and structured equity gained traction (23% of deals) as alternative structures addressing valuation uncertainty.
4Due diligence timelines extended 45% versus 2021, with heightened focus on unit economics, customer retention, and path to profitability.
5Companies with professional-grade financial reporting, KPI dashboards, and CFO-level leadership raised capital 38% faster than peers.

Table of Contents

Market Overview & TrendsPage 4
Growth Equity LandscapePage 10
Private Credit & Debt FinancingPage 17
Valuation Dynamics & PricingPage 24
Investor Due Diligence FocusPage 30
Deal Structures & TermsPage 36
Success Factors for FundraisingPage 42
2025 Outlook & PredictionsPage 48

Methodology

Analysis of 420+ growth equity and private credit transactions across technology, healthcare, and business services sectors. Data sourced from PitchBook, Preqin, BAM fundraising engagements, and proprietary investor surveys. Includes quantitative analysis of deal terms and qualitative assessment of investor preferences.

Data Sources

BAM Fundraising Advisory, PitchBook, Preqin, SEC Form D filings, investor surveys, company pitch decks and data rooms.

About the Author

贾(J

贾晨洁 (Chenjie Jia)

Director, Capital Markets

BAM's research collective synthesises market intelligence, governance benchmarks, and transaction casework to inform institutional decision makers.