Platform Preferences Are Drifting Upstream

In last week’s PE150 micro-survey, we asked: “What is your firm’s preferred enterprise value (EV) range for new platform investments today?”

Here’s how the responses broke down:

• 36% of respondents prefer deals below $100M EV
  

• 16% are targeting $100–250M EV
  

• 23% favor the $250–500M EV band
  

• 25% are looking at platforms above $500M EV

What this says about the market: Platform strategies are diverging. The majority of GPs are no longer clustering around the $100–500M middle—only 39% of respondents selected that range. Instead, preferences are consolidating at the edges: either go small and agile, or big and built-out.

The 36% preferring sub-$100M platforms reflects where value creation is still hands-on: fragmented sectors, flexible pricing, and room for add-ons. These deals often benefit from less competition, more proprietary sourcing, and faster closing cycles—especially in verticals like healthcare services, industrials, and niche tech.

On the other side, the 25% now focusing on $500M+ deals signals something equally strategic. These firms are looking for resilient platforms that can anchor multi-asset theses, attract strategics, and support leverage even in a tight debt environment. Scale buys pricing power, margin insulation, and more exit optionality. Many of these buyers are large-cap sponsors, sovereign-backed funds, or multi-strategy platforms leaning on cross-fund capital.

The real surprise? The collapse in interest for the $100–250M EV zone, now the smallest cohort at just 16%. Historically considered PE’s “Goldilocks zone,” this range may be getting squeezed by two pressures: 1) too big to benefit from small-cap inefficiencies, and 2) too small to justify complex structuring, co-investment, or continuation vehicles.

Why this matters for GPs and LPs: The barbell is real—and it has implications. LPs allocating to middle-market buyout strategies should dig deeper into fund size, sourcing model, and platform design. A $250M fund playing in the $50–75M EV range has a very different risk/reward profile than a $3B fund deploying $500M into a single asset with bolt-ons in mind.

For GPs, the bifurcation suggests fewer “safe” bets in the middle. You’re either hunting small and building with discipline, or chasing scaled opportunities with institutional backing. In between, competition is high, valuations are sticky, and returns may be less differentiated.

Bottom line: The era of one-size-fits-all platform strategy is over. As capital costs, exit paths, and sourcing channels evolve, GPs are adapting their strike zones accordingly. And if this week’s survey is any indicator, 2025 will be a barbell year for buyouts.