Chad Sandstedt

Great Article – Key points: (1) Interest-Rate Cut Impact: PE deal activity, is still facing challenges such as political uncertainties, weakened corporate performance, and a slow fundraising climate. (2) Already Priced In: Dealmakers indicated that the rate cut had already been factored into transactions over the past several months., (3) Value Creation Over the last two years, many PE firms have improved portfolio company performance by reducing costs and streamlining operations, which could result in higher valuations. (4) Deal Volume Growth: Projections suggest that PE deal volume will pick up in Q4 2024, with an estimated 9% year-over-year increase. This momentum is expected to continue into 2025. (5) Stagnant PE Exits: Despite an increase in US PE deal value (up 12% year-over-year in H1 2024 to $325.2 billion), PE exits remained stagnant, a critical issue as exits are essential for capital formation in the industry.

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The popular VC Secondary Series interviews have been compiled into a free book available at the Point Capital website. Expanding the series to now include PE Secondaries interviews. In this initial release, Mike Pugatch, a 20-year veteran at HarbourVest Partners, offers his knowledge and perspectives. Published on SecondaryLink. For a copy, DM with your email. “Ultimately, we are looking for opportunities that are in the heart of or at the front end of that strong value creation curve. The bulk of the return really comes from that go forward value creation. That is not to say that we don't like the discounts in the market, we certainly do where we can find them, but we consider ourselves to be more value oriented irrespective of whether that value shows up as an optical discount to NAV.” 👇 https://lnkd.in/gmrK8ifj

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Private credit isn't just about yields; it’s about balance. RIAs are the new kids on the block as investors, but they're the next frontier. As RIAs enter the credit market, they face a dynamic landscape with opportunities and misconceptions. Understanding the current landscape assists RIAs in making informed decisions, and embracing complexities that lead to better client outcomes. Had a great chat with Joseph Weissglass and Jordan Selleck on the 51 Labs podcast, Investors and Operators, diving into the role of RIAs in the private credit space. Full episode linked in the comments below! #privateequity #mergersacquisitionsdivestitures #investorsandoperators

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https://lnkd.in/gZeefZhX Private equity funds gathered $176.7 billion in the first quarter of 2024, a drop of roughly 10 percent from the $195.5 billion recorded in the same period last year, according to preliminary findings from PEI data. Interest rate uncertainty continues to weigh on buyout and exit activity, while record dry powder for the asset class remains stacked for 2024, the data found.

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🎯 M&A Market | Who's on the dance floor? Knowing what types of buyers are active in the market is a key insight ⤵ ▶ Yesterday, ProVisors' Silicon Valley M&A group hosted Kip Wallen from SRS Acquiom to discuss the 2024 Deal Terms Study. {For those that don't subscribe to SRS Acquiom's reports, they provide tremendous insight on the M&A market in general and legal terms in particular.} One of the things Kip stressed was activity by buyer type. Some key takeaways: 👉 PE direct M&A (ie, platform acquisitions) has remained relative constant as a percentage of deals since 2016, typically representing 12-14% of deals, but dipping to 10% in 2019. 👉 Private company acquirors (whether PE-sponsored portfolio companies or non-PE backed) have had more variability in the percentage of deals completed, ranging from 31-42% over the same time period. 👉 In 2022, PE-backed acquirers completed 26% of deals and non-PE backed privates completed 14%. Last year, that inverted, with portcos completing 14% of deals and non-PE backed privates completing 22%. 💭 For those of us in the lower middle market, there are a couple of key takeaways: (1) the add-on market has greater deal volume than the platform market {something I've discussed in the past, along with add-ons often featuring higher multiples} and, (2) recently, non-PE-sponsored strategics have been more active in the space than their PE counterparts. ⏩ In the coming weeks, I'll share additional insights from the SRS Acquiom reports. 👏 Special thanks to Roger Royse and Chris Abato for setting up and hosting such great meetings for SVM&A.

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With news of HPS Investment Partners, LLC discussing a prospective IPO, which alternative asset managers are next in line to cross the chasm to public markets? In this week's Alt Goes Mainstream AGM Alts Weekly, I highlight some of the attributes that indicate that an alternative asset manager could be on the path to a public offering and share a list of some that could go public. Silver Lake Vista Equity Partners Clearlake Capital Group General Atlantic Warburg Pincus LLC Ardian Bain Capital HarbourVest Partners Hellman & Friedman Thoma Bravo Advent International Insight Partners Clayton Dubilier & Rice Who is next in line for an IPO? Read this week's AGM Weekly brought to you by Intapp (Intapp DealCloud ) for thoughts on how firms can go public: https://lnkd.in/eVrveeEt

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