Economic Conditions

Middle market companies keep investing despite the noise.

While headlines on private credit have focused on high-profile defaults and concerns about late-cycle excess, the companies making capital decisions in this segment are leaning in, engaging with private capital partners, blending it with traditional bank financing, and using it to fund growth rather than to patch the balance sheet.

Multifamily investors have gotten their optimism back — and they are acting on it. Just one year ago, the multifamily sector faced higher interest rates, uneven availability of capital, record supply in some geographic markets, and an economic outlook that was changing daily.¹ Those factors tested underwriting assumptions and even though capital never completely left the sector, lenders and investors became much more cautious.

The construction of a new, $47 million Elwyn main school building is officially underway following a ceremonial groundbreaking Friday afternoon at the Middletown Township campus.

Structuring capital is never a simple endeavor, but P3s, in particular, require more strategic thinking to ensure the project is properly capitalized and can last for the duration of the partnership — often decades. It’s important to get it right, because P3 projects provide critical resources to a community, like student housing, new roadways, or government buildings that house essential services — but there is no large financial guarantor covering the debt. Building the right capital structure takes patience, experience, and understanding. KeyBanc Capital Markets' Infrastructure and P3 team has worked on numerous projects across sectors and understands the distinction and finesse required to close a deal.

A Synthetic Real Estate Lease (SREL) is a creative financing tool that combines the operational flexibility of leasing with the economic benefits of ownership.

As part of its mission-driven focus to Native America, KeyBank Native American Financial Services strives to remain on the forefront when it comes to the ever-evolving topic of Section 105(l) leases.

The country is undeniably experiencing an affordable housing shortage. The National Low-Income Housing Coalition estimates that the country is 7.1 million low-income units short of meeting current demand. But, increasing the affordable housing supply requires a complex capital stack, and gaps in funding can derail affordable housing projects.

Turbulence and volatility may have ruled the day in 2025, but 2026 is starting with the right ingredients for a potentially strong year of M&A for the middle market — companies with an enterprise value of $100 million to $1 billion. Improved economic fundamentals, the potential for lower interest rates, and a business-friendly regulatory environment are expected to help fuel activity this year — a welcome reprieve.

New survey data shows roughly half of middle market companies plan to pursue acquisitions by the end of 2025. But how are leaders timing mergers and acquisitions activity amid economic uncertainty, and what factors are most important as they prepare for growth and exit over the next three years?