The middle market offers superior prospects for differentiated, value added investing than exists in the venture or large-deal market. Here are just two reasons why:

• Where Inefficiencies Exist, Opportunity Flourishes: Middle market companies with annual revenues in the $25 to $250 million range number 55,000-plus today. That's a big, and growing part of the U.S. economy. Yet, these companies attracted only 25% of all private equity capital. That leaves 75% of private equity chasing either start-ups with still unproven teams and revenue streams, or mega-enterprises with capital-intensive operations. For middle market investors like Gryphon, the environment could not be more ideal: Fewer firms and more companies add up to more reasonable valuations.

• Ripe for Value Creation. Optimizing the operations of a multi-national corporation can be a living nightmare. It's complex, costly and, in the end, not always profitable. In the middle market, smart equity teams like Gryphon can have a direct, immediate impact on the companies in which they invest. Upgrading IT systems, streamlining operations, correcting under-capitalized balance sheets-all are initiatives that a middle market company can plan and execute quickly. For investors, that means bigger returns sooner.