RA Capital

Throughout 2024, market participants have been anticipating a return to more dealmaking as macroeconomic conditions have improved. However, M&A and IPO activity have remained lethargic as would-be targets hold out for a more friendly exit environment. As a result, we are faced with questions such as “What will be the catalyst that reinvigorates investment activity?” and “How long will it take for capital market activity to substantially rebound?” Please join our panelists, Eliot Peters and Joel Weinstein, for our webinar on Wednesday, November 20th - "Are We There Yet?" We will dive into the latest M&A and capital markets trends and discuss how investors are currently approaching the market as they navigate the evolving macroeconomic environment. Link to Register: https://hubs.li/Q02W-VYj0 #mergersandacquisitions #ipo #privateequity #privatedebt

During our webinar earlier this quarter, we highlighted accounting firms in the Institutionalization of Everything™. Like many other industries that were traditionally privately held, institutional money has found these businesses and has made a quick mark on the industry. The recurring nature of the revenue and the race to become more efficient with technology have attracted large private equity firms to buy firms of all sizes, including two of the top ten firms in the United States. From what we have heard, there is more consolidation to come in this industry and private equity firms are looking to put their dry powder to work. Stay up to date on our insights surrounding capital markets by following us on LinkedIn and visiting our News & Insights page for webinar recaps and more at https://hubs.li/Q02TsyNj0.

We frequently hear from business owners who are approached with an unsolicited “offer” to acquire their company and are looking for advice on how to proceed with the offer. While these unsolicited “approaches” may present an opportunity to explore an exit to a seemingly enthusiastic counterparty, they often favor the prospective buyer and cause chips to be left on the table for the seller. How you engage with these unsolicited parties can be critical in determining the ultimate value a business obtains in a transaction process. To learn more about how RA Capital’s expertise can help you evaluate an offer, read our latest piece, “There is No Such Thing as an Unsolicited Offer for a Private Company.” #mergersandacquisitions #privateequity #investmentbanking https://hubs.li/Q02SDLYR0

In the current market environment, many are inquiring how prospective sellers are approaching the market amid an M&A backdrop characterized by compressed valuations and elevated interest rates. While dealmaking has remained stubbornly low since the current rate-tightening cycle, one group in particular stands out as continuing this trend. Private equity firms have been very reluctant sellers, especially with recent vintage funds. While this speaks to private equity’s perception that market conditions have been less than ideal for a sale, it also suggests much fewer early winners in recent funds. In fact, funds dating back as far as 2018 and beyond still have a significant amount of exits to complete. Stay up to date on our insights surrounding capital markets by following us on LinkedIn and visiting our News & Insights page for webinar recaps and more at https://hubs.li/Q02PmtXK0.

Thank you to everyone who attended our recent webinar, in which Eliot Peters and Joel Weinstein held an insightful discussion about the status of capital markets and how dealmakers are navigating the current economic environment. The theme “thawing ice” applied to several areas of the capital markets. In the VC world: despite terms remaining extremely investor-friendly, there has been a plateau of just how investor-friendly terms have gotten and the beginning of a retreat back to the norm. A further opening of the IPO market could be one of the catalysts to see this trend normalize. Stay up to date on our insights surrounding capital markets by following us on LinkedIn and visiting our News & Insights page for webinar recaps and more at https://hubs.li/Q02MVV4Y0.

Last quarter, we shared our views on how persistent interest rates are tempering investment activity across capital markets. While overall activity is still below recent record-breaking highs, deal volume is beginning to heat up as prospective investors gain greater confidence that conditions for dealmaking are improving. It remains to be seen how this will impact activity in the immediate future, however we anticipate broader deal activity will begin to rebound over the course of the second half of 2024 and into 2025. Please join our panelists, Eliot Peters and Joel Weinstein, for our webinar on Wednesday, August 21st - "Thawing Ice." We will dive into the latest M&A and capital markets trends and discuss how investors are currently approaching the market as they navigate the evolving macroeconomic environment. Link to Register: https://hubs.li/Q02KggDp0 #mergersandacquisitions #ipo #privateequity #privatedebt

Have you heard about the rise in continuation funds? In our Q1 webinar, we explored some of the trends that are leading to a dramatic increase in the use of these vehicles. The lack of private equity exits in 2023 and 2024 has led to a significant increase in the use of continuation funds. As traditional private funds near their planned end, continuation funds allow managers to retain promising portfolio companies rather than selling them prematurely at potentially discounted prices. Essentially, private equity sponsors sell these companies to a special-purpose sister fund which allows them to extend the horizon of their investment. The use of these funds increased more than 7x from 2020 to 2023. Through Q1 2024, continuation funds have outpaced 2023 by nearly 2x over the same period. While a sale to a third party signals a more robust market, these structures allow private equity firms and their investors to “let their winners run” and will likely continue to be part of the M&A landscape going forward. Stay up to date on our insights surrounding capital markets by following us on LinkedIn and visiting our News & Insights page at raca.com/insight. If you are interested in a replay of this webinar, please visit https://hubs.li/Q02z0-JG0

We recently sent Nick Marcu and Sam Melcer to attend the annual international professionals meeting for the “Juniors” in Birmingham, England with our international partners. The meeting provided another great opportunity to build connections and have insightful discussions on M&A trends in each firm’s local market. A special thanks to Transcend Corporate (UK) for hosting the event as well as to our other partners who participated: Scouting Capital Advisors (Italy), Network Corporate Finance (Germany), Excalibur Capital (Poland), Presser & Co (Australia), Largilliere Finance (France), and Quore Capital (Netherlands). We look forward to seeing everyone for our next meeting in Dusseldorf in September!

Thank you to everyone who attended our recent webinar where Eliot Peters and Joel Weinstein held an insightful discussion about the status of capital markets at the start of 2024 and how dealmakers are navigating the current economic environment. This quarter, we discussed how a reduction in risk spreads in the credit markets has improved loan activity despite interest rates being forecast to stay elevated for longer. As a result, private equity firms are starting to return to the loan markets to finance both dividend recaps and acquisitions. Stay up to date on our insights surrounding capital markets by following us on LinkedIn and visiting our News & Insights page at raca.com/insight. For a replay of this quarter’s webinar, click here: https://hubs.li/Q02z0-JG0

RA Capital Advisors LLC was excited to sponsor the 9th Annual LevitZacks’s/Aspiriant “Post-Tax Day” Golf Tournament last week. It was great to see all the familiar faces pass through the ninth tee box of the Rancho Bernardo Inn Golf Course on what turned out to be a beautiful Thursday afternoon. The day was a well-deserved break for our tax friends and was in support of a good cause to benefit the CalCPA scholarship fund. 🏌♂️ ⛳