Merger, acquisition and leveraged buyout activity levels will continue to rise in the U.S. mid-market, according to a new survey of middle market dealmakers by GE Antares Capital, the leading lender for private equity-backed middle market companies.

Over two-thirds of survey respondents said they expect the mid-market M&A environment to expand over the next 12 months. This aligns with recent data from the National Center for the Middle Market (NCMM), which saw mid-market revenue growth in the first quarter of 2014 of 6.5% compared to just .5% for the S&P 500.

“Liquidity is everywhere right now,” said John Martin, president and CEO of GE Antares. “Middle market growth continues to outpace the overall U.S. economy – and the demand for financing that growth, organically and through M&A, is high.”

Survey respondents were generally positive about the trends in financing conditions, however, more than one third of respondents said new banking regulations have negatively impacted their businesses.

“While the survey reinforces what we are seeing in the market today, it also points to the less than clear regulatory environment as it affects the supply of financing,” said Martin. “This is something that middle market companies and buyers will need to watch closely as they look for new opportunities to invest.”

GE Antares’ survey was conducted April 29 at the ACG InterGrowth conference in Las Vegas. The 81 respondents represent a variety of investment professionals, limited partners, advisors, senior lenders, junior lenders, intermediaries and private equity firms.