Capstone Partners’ Post

Interesting read with some great data. What does it all mean for the distressed M&A/restructuring market? Your guess is as good as mine but seems like more of the same.

In the face of a challenging deal environment, an increase in corporate carveouts and alternative financing sources indicates a stabilizing deal environment in 2024. Learn more in our most recent middle market private equity M&A trends report. https://lnkd.in/gwfTAtFG

🔭 High interest rates and a lack of corporate mergers and acquisitions have led to a difficult 18 months for many #privateasset classes. What can investors expect in 2024? By Thierry Celestin, head of private assets at Lombard Odier Investment Managers.

Exciting Times Ahead for M&A in 2024! 💹 Economic uncertainty and higher interest rates have taken a toll on M&A volume, causing Private Equity to remain on the sidelines. However, with anticipated interest rate stability, and a release of pent-up demand, we can expect an increase in private equity activity. With companies eager to deploy cash, and the backlog of transactions, the stage is set for #M&A growth. #MergersAndAcquisitions #M&A #DueDiligence #BusinessGrowth #PrivateEquity #EconomicOutlook #FinanceTrends2024 https://lnkd.in/d4E6SABS

After M&A activity in 2022 hit an all-time high, activity has slowed 17% in 2024 compared to the same time period in 2023. But even though we have seen a slight uptick in activity in the second quarter, the RIA industry still experienced a greater decline than the broader M&A market. Is this trend here to stay? Find out in our latest update. https://lnkd.in/gJAB23Sz | #mergersandacquisitions #transactions #RIA #update

There are a number of middle market M&A transaction types, and each serves a strategic purpose. Get a concise overview of some of the most common here and why they’re executed.

“I think there was a point where you could either go towards more long-term capital or more liquidity in the secondary market,” says Adi Bhagwat, a managing director at Intermediate Capital Group. “And clearly people have voted with their feet. There doesn’t seem to be much appetite from LPs to say ‘O.K., lock me into a 15-year vehicle, because 10 years wasn’t long enough’. There are some who argue, however, that long-hold funds do have some advantages. Clifford Chance funds lawyer Patrick Meniru, says a long-hold fund, with a duration of 15 years or more, can help address “potential mismatches between a typical 10-year PE fund term and optimal asset hold periods,” taking the pressure off both portfolio company management and GPs to exit before the asset is ready for a sale. It can also, he adds, “mean lower advisory and transaction fees associated with a secondary process, especially if compared with sequential rollover processes into multiple continuation vehicles.” Brenda Rainey, who heads Bain’s Global Firm Strategy & Operations business, points out that for the moment, secondary deals account for a smaller proportion of the industry’s assets under management than long-hold funds.

Mergers and acquisitions are due for a comeback in 2024 after a slowdown in 2023, according to Morgan Stanley Investment Banking. Here are five trends to watch as the M&A market picks up again.

Mergers and acquisitions are due for a comeback in 2024 after a slowdown in 2023, according to Morgan Stanley Investment Banking. Here are five trends to watch as the M&A market picks up again.