Ariel Alternatives’ Post

Following Axios and Bloomberg, Managing Partner Larry Aschebrook’s 2024 predictions are also covered in the latest WSJ Pro VC newsletter 🔮   His view on private markets: “As liquidity pressure continues to build among startups and their investors, there will be a commensurate impact on the volume of opportunity and depth of discounting in secondary markets.”   Read his full take: https://lnkd.in/g3j6dEe4

M13 partner Anna Barber has been making waves across the internet recently! ICYMI ⬇ Read why Anna is optimistic about the impact of the recent 50-basis point rate cut for both investors and founders in Bloomberg from Katie Roof: https://lnkd.in/eD-anesJ  Check her out on Business Insider's list of the 19 best female early-stage investors, from Ben Bergman, Rebecca Torrence, and Samantha Stokes: https://lnkd.in/eBP_YB8J  What makes a founder stand out to Anna? She shared her thoughts with the M13 team: 🌟 "Founders with a lot of courage, who aren’t afraid of contrarian thinking  🌟  Founders who see venture capital as a tool, not the end goal 🌟  Founders with deep perspective on the market they’re building in because of prior experience—it’s probably not a coincidence that I tend to be drawn to older founders 🌟 Founders with a deep conviction about their purpose and the business they’re trying to build" Learn more about what (and who) Anna is excited to invest in: https://lnkd.in/gfbjQYnr #Investors #VentureCapital

Daniel Lynn spoke with Fortune Term Sheet about what he predicts the public & private markets might look like this year. 🔮 What are your predictions for the year ahead? Read more about what private equity investors, VCs and tech founders are anticipating in 2024: https://lnkd.in/ewfV_WFv

Rethinking Direct Secondaries: A Strategic Move in Today’s Extended Private Market 🤔 Direct Secondaries have often been misunderstood in the ever-evolving landscape of venture capital. As I navigated the bustling halls of the Lazard's T500 Conference in London last week, a founder, skeptical of secondaries, expressed concern over early employees and shareholders seeking liquidity. It was perceived as a lack of faith in the company’s future. However, I took this opportunity to shed light on a different narrative. 💡 In an era where companies remain private longer, Direct Secondaries offer a beacon of strategic foresight. They provide well-deserved liquidity to those who have fueled the company’s growth from its inception. This isn’t a sign of abandonment; it’s a celebration of success and a welcoming of new investors who see the untapped potential and are willing to invest, understanding the risks and rewards that come with positions lower in the preferred share hierarchy. 🎉 This is not just a transaction; it’s a strategic move that signals a healthy ecosystem where all parties’ contributions are valued and growth is still on the horizon. 💪 Let’s embrace a broader view of Direct Secondaries and recognize their potential to balance the needs of the company’s long-term supporters with the enthusiasm of new investors ready to join the journey. #VentureCapital #DirectSecondaries #PrivateMarkets #Innovation #GianoCapital #Secondaries #Exit

It's fascinating how #privateequity and #venturecapital investors have different perspectives. Sampford Advisors Inc's recent survey of PE and VC investors revealed that 81% of VCs believe that the NASDAQ will increase over the next 12 months, while only 29% of PE investors share the same view. Who will be proven right? Only time will tell, but this disparity highlights the unique mentalities of both investor groups. #investing #finance #surveyresults

The right place at the right time. So much of success in life and investing is dependent on that. We recently analyzed over 7,800 private equity investor portfolios in Europe. And guess what? Some of the largest private equity firms today were established in the 1990s or before when the whole industry was taking off. Reminds me of this quote from a leading tech investor (Pete Flint) "Enter a market too early, no matter how strong the founding team, and you could be stuck waiting for a day that never comes. Enter too late and you’re fighting an uphill battle against incumbents with greater scale." The time has to be just right. #markets #investor #timing

We are thrilled to announce that MorganFranklin is moderating a panel discussion at PEI's upcoming Operating Partners Forum in New York on Oct 22nd. As 2024 remains a challenging exit environment, private equity firms are focused on driving top-line improvement at their portfolio companies through commercial excellence, key processes, and technology adoption. The panelists will provide insights on how private equity firms can enhance agility and drive sustainable top-line growth within their portfolio companies.   Our very own Jawad Hussain, Private Equity Services Lead, will be moderating the discussion, and will be joined by the following panelists: Samiksha Gupta of Mubadala Performance Partners; Mark Abatto of Gryphon Investors; and H. Kush Tulsidas of One Rock Capital Partners, LLC. #OPNY24 | #PrivateEquity | #ValueCreation

💻 Join us on Tuesday 23rd July to hear about the latest developments in secondaries and the evolution of company-led liquidity. 🔗 https://lnkd.in/eaE7eh9z  The European secondary market is quickly gaining popularity and attracting both new and existing investors. This shift indicates the maturation of venture capital and reflects a transformative shift as stakeholders adapt to new liquidity needs and market dynamics. Learn more in our upcoming White Paper "Demystifying company-led secondaries" and join our exclusive accompanying webinar on 23rd July where former-NotSoLiquid co-founders David and Pierre delve into: 📈 The market overview: Navigating VC secondaries in 2024 🎯 Company-led liquidity strategies and best practices 💰 Use cases and investor landscape Don’t miss this opportunity to learn more about this topic in our webinar – register now 🔗 https://lnkd.in/eaE7eh9z #VentureCapital #SecondaryMarkets #WhitePaper #Webinar #BryanGarnier

Great to see Five V Capital launching their Frontier Fund I that will focus on the lower-mid market, an area with untapped potential. The focus on companies with sub-$7m earnings is critical, especially as many of these businesses face challenges as generational family businesses, opening the door for the right strategic investment or growth partners Spark Equity Partners acquisitions of Ultralift Australia and Westberg Sheetmetal came from this belief, and it has been a rewarding journey so far. With a focus on identifying business that might not be on the radar for traditional Private Equity firms but offer significant growth if you're willing to engage directly with the team and build from within. This certainly supports the idea that this market is an upcoming opportunity, and it’s reassuring to see firms like Five V Capital paving the way. Hats off to Adrian MacKenzie, Srdjan Dangubic, Chris Adams, and the team, looking forward to seeing how Frontier Fund I shapes the industry. #PrivateEquity #BusinessGrowth #BusinessStrategy #LowerMidMarket #GenerationalBusiness #InvestmentOpportunities 

💬 Seniority Structures: When Do They Really Make Sense? We often see investors pushing for seniority, even in Series A rounds, when the new investment is 5-10x larger than a previous seed round of less than $1M. But is the benefit really there? In these cases, the upside seems modest at best, while the downside is clear – pari passu is disrupted, especially when future rounds like Series B are made senior to all previous investments, making it less favorable for all earlier investors, including Series A. Stay tuned! We’ll be hosting a session soon to dive into seniority structures and the latest trends in liquidation preferences. #startupfunding #liquidationpreferences #senioritystructures #investorconcerns #venturecapital