Tribe Impact Capital’s Post

Private equity is encountering significant challenges amidst a notable slowdown in dealmaking, leaving the industry with a staggering 28,000 unsold companies valued at over $3 TRILLION, according to Bain & Co's annual report. Implications: The evolving private equity landscape presents both challenges and opportunities, urging stakeholders to innovate and strategize effectively to exploit opportunities from alternative fundraising methods and IPO exits. Retrieved from: https://lnkd.in/eYGBbyVA Other Key Notes: - Last year witnessed a 44% decline in the combined value of privately and publicly sold companies, marking the lowest level in a decade. - The value of companies sold to other buyout groups plummeted by 47%, highlighting a stark contrast in asset valuation opinions. - With over 40% of unsold companies being at least four years old, there's growing pressure on private equity firms to prepare for sales, yet liquidity needs remain a challenge. - Amidst difficulties in selling assets, private equity is exploring alternative fundraising tactics such as net asset value financing and internal fund transfers. - Despite challenges, the secondaries market has experienced substantial growth, doubling in funds raised last year. Additionally, the IPO exit route is showing signs of resurgence. #PrivateEquity #Investment #Finance #MarketTrends #Strategy

In the era of rising interest rates, Private Equity firms are one industry that absolutely needs to recalibrate. A strategic shift from their traditional approach that creates value requires scanning across their portfolio of organisations, identifying digital capabilities and hotspots, and then building their own digital transformation accelerators. Revisiting Radko Diev's insightful piece: https://lnkd.in/eCHkh-2f #postshift #privateequity #digitaltransformation #digitalacceleration

What is the current climate, and market outlook, for Technology companies backed by Private Equity? This was the topic of a recent breakfast hosted by Odgers Interim. This article summarises how three PE investors - Hg, Bain Capital and Macquarie Group - currently see the market, and how they expect it to shape up in the next 18 months. We also discussed the key topics of value creation, the characteristics of a successful management team, exits and artificial intelligence - all of which will be shared in separate articles. Ross Gordon Natasha Pabari Victoria Haynes #privateequity #techPE #PEmarketoutlook

Happy New Year! Unlocking M&A potential in 2024 🚀 The year 2023 threw challenges at the global M&A scene with a 20% dip, hitting Private Equity and Venture Capital hard, according to Bain & Company. Now, PE firms juggle trillions in unsold investments, facing pressure from LPs for cash returns. What's next? Brace for a shift in strategy. 2024 holds the promise of overdue deals making a comeback, but with a twist. I'd expect more intricate transactions featuring structured financing, performance-based earn-outs, and corporate carve-outs. It's about optimizing capital structures and ensuring sustainable outcomes. As an M&A advisor, I'm excited about the opportunities this dynamic landscape presents. Ready for a year of strategic moves and innovative deal structures. #mergersandacquisitions #transactions #dealmaking #2024outlook #privateequity #venturecapital #financialtimes

🚦Mixed signals for businesses looking for private equity #investments.. Acording to the Financial Times article, The Carlyle Group doubled its fundraising in the second quarter to more than $12bn. It is planning to raise $40bn by end of 2024. Other notable investors like Blackstone and KKR announced similar positive fundraising results. On the other hand, we have been observing fluctuating stock markets and unstable macroeconomic environment, due to the recent negative news from the US and Japan. There is actually a good reason: Financial investors are getting ready to accelerate their investment/ #acquisition activity, in the light of expected interest rate cuts by Fed. Also ⤵: Note that Carlyle and others are focusing on large-sized transactions. Would that be relevant for small-medium businesses? I am not sure. We might see a more challenging environment for investors focusing on SMEs. Feel free to connect me for further discussion & collaboration! ---------------------------------------------------- ✅ ️Like and Comment to exchange ideas! ✅ Follow Erdemi M&A | Corporate Finance Advisory: With 12 years of international M&A experience, I provide buyside and sellside advisory services including identification of #investors & targets, #valuation & business planning, negotiations, due-diligence and integration management. Source: https://lnkd.in/eutYnzt3

2024 is setting up to outperform 2023 in the Lower/Middle Market M&A world. 🚀 Here's what to be paying attention to if you're an investor, a business owner, or an M&A professional looking to capitalize on 2024: CONTINUED MOMENTUM 📈 Building on the momentum from the second half of 2023, the outlook for Q1 of 2024 is dynamically promising. In recent discussions with our clients and partners, coupled with the surge of projects we're witnessing across our firm, a noticeable uptick in Q1 activity seems more than just plausible, setting a robust foundation for the year ahead. EMERGING OPPORTUNITIES 🌞 The M&A landscape for 2024 is bursting with potential. In numerous conversations with industry peers and through market observations, we're noticing a significant trend: a multitude of projects and businesses are gearing up for major moves in 2024. This signals a golden period for firms to dive into strategic acquisitions and mergers, leveraging the abundant and high-caliber possibilities that the market is presenting. CAPITAL DEPLOYMENT 💰 We've all been talking about it for a while, the market is currently sitting on a substantial reserve of 'dry powder' – unused capital that is eagerly awaiting deployment. As we move into 2024, we're poised to witness a strategic unleashing of this capital given the opportunities mentioned above. With such a considerable amount of resources at their disposal, firms have a unique opportunity to redefine their investment strategies and make impactful moves in the M&A arena. PRIVATE EQUITY MOVEMENT 🎩 This year marks a defining moment for private equity firms in the M&A domain. With strategic plans to revitalize and reorganize their portfolio companies and dry powder at their disposal, they are gearing up for impactful moves. This proactive stance is likely to catalyze significant developments in the sector, making private equity firms instrumental in orchestrating and influencing M&A activities. INTEREST RATE DYNAMICS 🎢 With the business world adapting to a higher interest rate environment, 2024 brings a breath of fresh air as many have "gotten used to" where we are at now. Additionally, as we move into an election year, expectations and some early signs are leaning towards a likely decline in interest rates, offering a more conducive environment for M&A activities, albeit not going down as fast as we saw them pop up. ELECTION YEAR "STABILITY" 🗳 Let's be real, election year and market stability don't go hand in hand, election years are synonymous with volatility. However, 2024 might be an exception. The predictability of the leading candidates suggests a more stable domestic political climate, reducing uncertainty for M&A decisions. What else is lingering out there?? ⁉ #mergersandacquisitions #transactionadvisory #privateequity #investmentbanking #businessowner

The latest Bain & Company 2024 Private Equity Midyear Report reveals key insights on the current PE landscape. After a two-year decline, the market is stabilizing, yet grappling with tentative momentum. Deal and exit counts are leveling off, with a slight uptick in deal value, while Limited Partners are pressuring GPs for increased distributions. Operational Excellence & Tech capabilities are emerging as crucial value drivers for PE firms. Firms leveraging technology to streamline operations and innovate are poised to stand out amidst elevated interest rates and macroeconomic uncertainties. At TechTorch, we emphasize the importance of integrating cutting-edge tech and operational improvements for PE firms seeking to boost performance and attract investors. Building a robust value-creation engine is key to navigating market fluctuations and ensuring sustainable growth. Let's connect to explore how transformative technology solutions can elevate your portfolio companies. Together, we can navigate the complexities of the current PE environment and unlock new levels of success.  https://atbain.co/4aJfHmo #TechTorch #ValueCreation #OperationalExcellence #EnterpriseTechnology ##PrivateEquityTrends #PrivateEquity #InvestmentTrends

Private equity funds are those investment classes which consists of capital that are not listed on the stock exchange. These funds aim to generate high return for the investors by either acquiring, improving, or selling the companies. Institutions like pension funds, insurance companies, and high net-worth individuals invest in private equity due to their complex nature. 1) Popular sectors for PE investments include technology, healthcare, consumer goods, financial services, and infrastructure. 2) Top PE firms include Blackstone Group, KKR (Kohlberg Kravis Roberts), Warburg Pincus, Bain Capital, Carlyle Group, Apex Partners, and many more. 3) The private equity industry has grown rapidly; it tends to be most popular when stock prices are high and interest rates are low. 4) Most of the PE firms and funds invest in mature companies rather than startups. They are not subject to any regular public disclosure requirements. There are generally two categories of private equity funds: 📌 Venture Capital- It is a form of private equity and financing that deals with the funding of early-stage startups and new businesses. They generally take a minority stake in the company. 📌 Buyout or Leveraged buyout- It is a strategy that combines investment funds with borrowed money. The main purpose of this fund is to buy companies and make them profitable. #privateequity #funds #investments #buyout #venturecapital #cxoinsights #centerofexcellence #leveraged #growingindustry

Private equity has gone through many changes. In the 1980s, PE firms focused on breaking up companies through highly leveraged buyouts. In the 2010s, they began to focus on making large operational improvements to their portfolio companies. The trend of acquiring companies, restructuring their operations, and improving efficiency to generate market-beating returns for their investors is expected to continue – with one notable new twist. A shift towards specialization has emerged that is challenging the wisdom of the traditional generalist approach of PE firms. Bob Kersten of BrandingBusiness looks at the advantages of this more focused approach to a crowded market, and the branding implications for greater differentiation and effectiveness. #privateequity #PEfirms #marketdifferentiation #specializationtrend #brandstrategy #valueproposition #messagingstrategy #brandidentity #marketpositioning https://bit.ly/3yF2QnY

One of our members in the M&A Peer Forum group is Scott Puccinelli, MBA. Scott shared a great article by his uncle, @Gary Pinkus - of McKinsey & Company. https://lnkd.in/gtnFHj2V Scott wanted me to share these insights with you all: "Uncontrollable factors like supply chain have slowly turned around to normalcy, real-estate investment is continuing to pull back (or lose PE interest), debt has become less of a player in acquisitions, etc. All these are shifting the sharp pull-back seen over the last two years, but there’s still major concern when PE’s do their due diligence. Gone are the days of ‘conceptual’ purchases… they want proven numbers. What they don’t realize is they need to look at the framework and team behind creating those numbers!" Folks, what we need to do is start "Quantifying the soft," measuring those essential areas of business very difficult (but not impossible) to measure in order to demonstrate value creation, risk mitigation.