Jennifer Pereira of Fengate argues that the lower mid-market remains resilient despite geopolitical tensions and fluctuating interest rates. Speaking at PEI Group's Women in Private Markets Summit, she emphasized that today's environment favors companies with strong fundamentals and disciplined operations.

Pereira noted that investors should prioritize cash discipline, pricing power, operational rigor, and leadership maturity when evaluating opportunities. These factors become particularly important as market volatility increases and traditional growth metrics face pressure.

The lower mid-market segment has historically shown stability during economic downturns, offering attractive entry points for private equity firms willing to focus on operational improvements rather than multiple expansion. This strategy allows investors to generate returns through fundamental business enhancement.

Her comments suggest that private equity firms targeting smaller companies may find better risk-adjusted opportunities compared to large-cap investments, especially when macroeconomic conditions create pricing dislocations and force operational excellence across portfolio companies.