How Club Deals Are Reshaping Middle-Market Buyouts

Lucas and Luna break down the rise of club deals in middle-market M&A—where multiple private equity firms pool capital to acquire larger targets. Using the 2025 acquisition of a $2.1 billion industrial coatings company by a three-firm consortium as a case study, they explore why clubs form, how they split governance and carry, and the hidden risks of co-investor conflict. Lucas explains the mechanics of 'tag-along' rights and 'drag-along' provisions in club agreements, while Luna questions whether these structures really deliver better returns or just dilute accountability. The episode also touches on how club deals affect management teams and portfolio company governance. A specific, numbers-driven look at a growing but under-discussed trend in private equity. #ClubDeals #MiddleMarketM&A #PrivateEquity #Buyouts #CoInvestment #PEGovernance #IndustrialCoatings #TagAlongRights #DragAlongRights #Consortium #MergersAndAcquisitions #LBO #DealStructure #Business #Finance #FexingoBusiness #BusinessPodcast #AcquisitionTalk Keep every episode free: buymeacoffee.com/fexingo