Nicole DeTommaso’s Post

In some sectors, private equity has a reputation for loading companies with debt, and those companies eventually implode under the weight. But we haven't seen this so much with tech-oriented private equity firms. Rather, venture capital money can be more dangerous to a tech firm than PE capital. That's because VCs looking to hit home runs will come in and make drastic changes to the model, trying to force it to grow, grow, grow. 9 out of 10 of VC portfolio companies implode this way, but the one that succeeds returns the fund. Compare that to PE investors who are looking for a 30% return out of the company every year. Generally, what they're looking to do is help the company work smarter and faster, rather than make drastic changes. #founders #privateequity #pathtoexit

Money Does Both ... Talk and Walk Navigating the funding spectrum of a start-up involves distinct phases, each with unique requirements. Initially, family and friends investments are common, characterized by informal agreements and trust-based loans or equity. As the business grows, angel investors become pivotal, requiring detailed business plans and compelling pitches demonstrating market potential and strong management. Next, securing venture capital necessitates rigorous due diligence, comprehensive financial forecasts, and evidence of traction. Venture capitalists often seek substantial equity and board representation. Further along, preparing for an IPO demands stringent financial audits, regulatory compliance, and the readiness to disclose detailed company performance. Successful IPO or sale culmination requires strategic planning and long-term growth vision to attract public investors or potential acquirers, ensuring robust exit strategies and liquidity for stakeholders. PEG has relevant experience in each of these scenarios. With A Bias for Action, we can leverage experience into success for founders, investors and company boards.

It's a common misconception among private market investors that capital calls are unexpected. Similarly, some founders expect that capital calls are a source of immediate access to funds. In reality, capital calls require a complex interplay of careful timing, financial planning, and communication. Executed properly, capital calls can create tremendous benefits for everyone in the Venture Capital ecosystem. This BIP Ventures article explains how capital calls work and how VC funds use them to remain agile and able to help founders and investors capture opportunities. You'll learn: ☑️ What capital calls are ☑️ What role they play for VC funds, founders, and investors ☑️ Why capital calls are critically important and beneficial ☑️ How investors, founders, and VC managers can use capital calls to their benefit ☑️ Questions that HNWIs and founders should ask before aligning with a Reg D fund Get the information here 🔗 https://buff.ly/4c4xbeL #VentureCapital #Investing #CapitalCalls #PrivateEquity #HNWInvestors #StartupFunding #VCInsights #InvestmentStrategies #Founders #WealthManagement

Secondaries accelerate the democratization of private equity. Here’s how: With Stableton, we are democratizing access to the most successful pre-IPO companies - Or more concretely, all the Top 20 global tech unicorns in one portfolio. Historically, acquiring shares in a pre-IPO company has not been easy. Investing as part of a capital increase meant building connections with these companies for years and investing tens to hundreds of millions of dollars. ➤ Secondary transactions are the solution to this problem. Put simply, a secondary transaction occurs when an existing shareholder of a company decides to sell to another shareholder. 𝗧𝗵𝗲𝗿𝗲 𝗮𝗿𝗲 𝗺𝗮𝗻𝘆 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝗳𝗼𝗿 𝘀𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝗶𝗲𝘀 ▪ Employees are asset-rich, but cash-poor and can get liquidity from their shares ▪Non-traditional investors such as family offices or banks change course or need liquidity ▪Existing VC funds run out of their fund lifetime ▪VC funds want to distribute cash so they can raise their next fund Meanwhile, the buyer gets exposure to a company and sector of the economy that would otherwise be out of reach. 𝗧𝗵𝗶𝘀 𝗶𝘀 𝘄𝗵𝘆 𝗜 𝗰𝗮𝗹𝗹 𝘀𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝗶𝗲𝘀 𝗮 𝗱𝗲𝗺𝗼𝗰𝗿𝗮𝘁𝗶𝘇𝗶𝗻𝗴 𝗳𝗼𝗿𝗰𝗲 Secondaries allow for better portfolio management:  ➤ Secondaries facilitate rebalancing and risk management by enabling diversification Secondaries allow for better liquidity:  ➤ They create opportunities for new investors to enter established companies and provide liquidity options for existing investors Secondaries allow for better transparency and portfolio valuation:  ➤ The vast amount of secondary market trades bring transparency by providing more data points on valuations. As a result: 𝗦𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝗶𝗲𝘀 𝗮𝗹𝗹𝗼𝘄 𝗳𝗼𝗿 𝗯𝗲𝘁𝘁𝗲𝗿 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀 (such as ours): ➤ Such as passive, low-cost, semi-liquid, or open-ended ➤ Appealing to the wealth channel, direct clients, and institutional investors alike. As such far more investors can participate in private market investments. Here is a recap of what we do at Stableton: We provide easy access to the Top 20 global pre-IPO tech companies through a passive strategy with zero performance fees. And because we manage our portfolio through secondary transactions, our fund can be semi-liquid (with 3x the liquidity of ‘traditional’ semi-liquid funds) something almost unheard of in private market investment. You can learn more in the Stableton Navigator newsletter: https://lnkd.in/eG6ufZtT #secondaries #investing #democratization #marketaccess #preipo

I’m excited to share that I’ve successfully completed the Private Equity and Venture Capital course! 💡📈 This experience has given me in-depth insights into the dynamic world of private funding, deal structuring, valuation methods, and the strategies that drive the growth of innovative businesses. Understanding the intricacies of private equity and venture capital has not only broadened my financial acumen but also equipped me to analyze entrepreneurial ventures and strategic investments with greater clarity. Eager to apply this knowledge in real-world scenarios and keep building my expertise in the ever-evolving domain of finance! 🚀 #PrivateEquity #VentureCapital #FinanceLearning #ProfessionalGrowth #ContinuousLearning #InvestmentStrategies

It's a common misconception among private market investors that capital calls are unexpected. Similarly, some founders expect that capital calls are a source of immediate access to funds. In reality, capital calls require a complex interplay of careful timing, financial planning, and communication. Executed properly, capital calls can create tremendous benefits for everyone in the Venture Capital ecosystem. This BIP Ventures article explains how capital calls work and how VC funds use them to remain agile and able to help founders and investors capture opportunities. You'll learn: ☑️ What capital calls are ☑️ What role they play for VC funds, founders, and investors ☑️ Why capital calls are critically important and beneficial ☑️ How investors, founders, and VC managers can use capital calls to their benefit ☑️ Questions that HNWIs and founders should ask before aligning with a Reg D fund Get the information here 🔗 https://buff.ly/4c4xbeL #VentureCapital #Investing #CapitalCalls #PrivateEquity #HNWInvestors #StartupFunding #VCInsights #InvestmentStrategies #Founders #WealthManagement

Accel-KKR Closes First Strategic Capital Fund For Secondary Investments In The Software Market, At Over $2.2 Billion https://lnkd.in/gWMwM9CA Your go-to for local business news. Follow citybiz Accel-KKR #AccelKKR #Strategic #Capital #Fund #Secondary #Investments #Software #Market #Citybiz #Citybizco #Citybizlist #CitybizNews

United States $90 billion global software investor Insights Partner has raised $12.5 billion for the 13th flagship buyout co-invest Fund XIII and the structured equity fund (Opportunities Fund II).  Insights Partner flagship funds invest $5 million to $500 million in a company from the earliest institutional investment to IPO.  The opportunities fund provides companies with financing solutions via structured preferred equity investments.  Insight Partners was founded in 1995 by Jeff Horing & Jerry Murdock.  Read - https://lnkd.in/g6ETN5ZH follow Caproasia | Driving $28 trillion assets in Asia. For top institutional investors, professional investors, financial advisors, private bankers, family offices, investment bankers, leaders & CEOs United States global software investor Insights Partner ($90 billion AUM) has raised $12.5 billion for the 13th flagship buyout co-invest Fund XIII and the structured equity fund (Opportunities Fund II).  Insights Partner flagship funds invest $5 million to $500 million in a company from the earliest institutional investment to IPO.  The opportunities fund provides companies with financing solutions via structured preferred equity investments.  Insight Partners was founded in 1995 by Jeff Horing & Jerry Murdock.  Jeff Horing, Co-Founder and Managing Director at Insight Partners: “For 30 years, Insight Partners has been more than an investor—we have been a partner to software leaders, helping them scale transformative ideas into global powerhouses. Fund XIII is a testament to the trust we’ve built with our founders, Limited Partners, and team. As we celebrate this milestone, we remain focused on shaping the next era of innovation and growth in the software industry.” Deven Parekh, Managing Director at Insight Partners: “Fund XIII and Opportunities Fund II represent our unwavering belief in the power of software to transform industries and lives. These funds not only solidify our position as a global leader in software investing but also reflect our commitment to supporting founders with flexible capital, operational expertise, and enduring partnerships. We are grateful to our Limited Partners for their long-standing support of our vision. Looking ahead, we are excited to build on 30 years of success, continue to expand our presence in global markets, and drive innovation across the software ecosystem.”

Day #85 Private equity strategies Overview: The private equity asset class is subdivided into four sub asset classes. These are venture, growth, buyouts and mezzanine. Each sub asset class involves the use of different financial instruments and involves investing in companies at different stages of their development. Growth capital Equity investments in companies that are mature but want to expand, restructure, enter new markets, or acquire other companies Venture capital Funding for startups that are in the early stages of their lifecycle and have the potential for rapid growth Real estate A group of investors pool their money to invest in properties Leveraged buyout An investor uses significant debt to acquire a controlling stake in a company. The investor uses the company's future profits to pay off the debt. Distressed buyout A private equity firm buys a troubled company for less than its market price Secondaries Also known as continuation transactions, secondary funds buy assets or interests from primary private equity funds. Other private equity strategies include: Strengthening the management team Acquiring new businesses Shaping business strategy Developing and launching new products Streamlining and improving operations Optimizing capital structure #Private #equity #strategies #Privateequitystrategies

From leaver provisions to ratchets, in the first article published by our Private Equity group we consider some of the key differences between private equity and venture capital transactions. A subtle yet significant nuance that is crucial to understand.   Click here to read more; https://lnkd.in/eTsRPwHH