Middle Market Companies Actively Pursuing Growth Strategies
November 29 2016 - 8:30AM
Business Wire
CIT Executive Insights Video Discusses Results
of Annual CIT Voice of the Middle Market Survey
Mid-market executives are more confident about future growth and
are actively pursuing multi-faceted growth strategies in the coming
year. These are some of the observations from Jeff Kilrea,
Group Head and Managing Director, CIT Sponsor Finance, a division
of CIT Group Inc. (NYSE:CIT), a leading provider of
commercial lending and leasing services, in “Middle Market Economic
Outlook,” (cit.com/kilrea), the latest piece of market intelligence
in the CIT Executive Insights video series.
“Middle market executives indicated they expect to see a lot of
geographic expansion in 2017,” said Kilrea. “Alternatively, we
anticipate that we will see these companies look at other ways to
deploy capital, i.e. via new technologies and digital strategies,
as well as new product line extensions. Businesses are also
forecasting greater investments in marketing/advertising and the
workforce.”
Results from the annual CIT Voice of the Middle Market survey
indicate that middle market executives expect federal interest
rates will begin to rise; however, despite this, signs point to an
ample supply of capital for the middle market in 2017.
When asked about the prevalence of M&A versus private equity
investment in 2017, Kilrea said, “Acquisitions are just as probable
as investment in organic strategies. Private equity fund managers
see growth potential consistent with the middle market owners and
leaders. We expect private equity to look at select opportunities
in energy and energy-related services as oil prices stabilize. We
also expect the healthcare and technology sectors to be of interest
for PE firms. Private equity capital will continue to fuel sector
growth in 2017; however, the frothy deal environment may be a
precursor to a future downturn.”
Kilrea also points out that optimism is dampened somewhat by
concerns over obstacles, in particular: data security, changes in
the healthcare system, uncertainty in our tax policies, global
terrorism and cyber threats. There is also the “known unknown” in
this post-election year: How will federal policies affect American
business? However, he believes that business leaders are being
proactive should there be dramatic changes in the tax regulation
and/or governmental spending declines.
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About CIT
Founded in 1908, CIT (NYSE: CIT) is a financial holding company
with more than $65 billion in assets. Its principal bank
subsidiary, CIT Bank, N.A., (Member FDIC, Equal Housing Lender) has
more than $30 billion of deposits and more than $40 billion of
assets. It provides financing, leasing and advisory services
principally to middle market companies across a wide variety of
industries primarily in North America, and equipment financing and
leasing solutions to the transportation sector. It also offers
products and services to consumers through its Internet bank
franchise and a network of retail branches in Southern California,
operating as OneWest Bank, a division of CIT Bank, N.A. cit.com
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version on businesswire.com: http://www.businesswire.com/news/home/20161129005365/en/
CIT MEDIA RELATIONS:Matt Klein, 973-597-2020Director,
Media RelationsMatt.Klein@cit.comorCIT INVESTOR
RELATIONS:Barbara Callahan, 973-740-5058Senior Vice
PresidentBarbara.Callahan@cit.com
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