TheStrategySmith’s Post

The key objectives and purposes of private equity ✨ Capital Injection: Private equity firms provide capital to companies for various purposes, such as expansion, acquisitions, restructuring, or to support a management buyout. ✨ Operational Improvement: Private equity firms often actively work with the management of the companies they invest in to enhance operational efficiency, improve management practices, and increase profitability. ✨ Long-Term Growth: Private equity investments typically have a longer time horizon compared to public market investments. This longer-term perspective allows for strategic initiatives and improvements to be implemented over several years. ✨ Risk Mitigation: Private equity investments can be riskier than public equity investments due to the lack of liquidity and market transparency. However, private equity firms often aim to mitigate these risks by actively managing and influencing the companies in which they invest. ✨ Value Creation: Private equity firms aim to create value for their investors by buying underperforming or undervalued companies, improving their operations, and selling them for a profit. ✨ Portfolio Diversification: Institutional investors often allocate a portion of their portfolio to alternative investments, including private equity, to diversify their risk and seek higher returns compared to traditional asset classes. ✨ Entrepreneurial Support: Private equity can provide support and guidance to entrepreneurs and management teams, leveraging their expertise to help companies achieve their full potential. ✨ Exit Strategies: Private equity firms typically have exit strategies in place, such as selling their stake through an initial public offering (IPO), a merger, or a sale to another company, with the goal of realizing a return on investment. nxt90days is assisting #privateequity in achieving at least 5 of the 8 objectives. Over 20 years of C-level experience in transforming and accelerating companies. Please let us know where we can assist you! [email protected] or +31 612963683. Let's talk! Armando Voets Maarten Dekker Maarten Poels

New data shows that Private Equity returns are witnessing a significant downturn - reminiscent of the global financial crisis era (2008-09). It's becoming increasingly clear that the traditional playbook isn't working. For PE firms, especially lower middle-market and early or growth stage focused funds, the path forward demands a more nuanced understanding of strategic fit and product alignment. It's about building companies that not only grow in value but also solve the real issues facing their customers. As we navigate this shift, firms need to focus on innovation, customer satisfaction, and genuinely impactful solutions - often with advice and counsel brought in to provide guidance. Omnia Group helps private equity firms address core pain points faced by their portcos and provides a value-driven approach that prioritizes the needs and challenges of the end user. Source: Data from Raymond James via Bloomberg News article. https://bloom.bg/3uvgRmI #product #productmanager #productmanagement #technology #b2b #saas #strategy #userexperience #innovation #privateequity #pe #growthequity #growthcapital #startup #consulting #founders

The key objectives and purposes of private equity ✨ Capital Injection: Private equity firms provide capital to companies for various purposes, such as expansion, acquisitions, restructuring, or to support a management buyout. ✨ Operational Improvement: Private equity firms often actively work with the management of the companies they invest in to enhance operational efficiency, improve management practices, and increase profitability. ✨ Long-Term Growth: Private equity investments typically have a longer time horizon compared to public market investments. This longer-term perspective allows for strategic initiatives and improvements to be implemented over several years. ✨ Risk Mitigation: Private equity investments can be riskier than public equity investments due to the lack of liquidity and market transparency. However, private equity firms often aim to mitigate these risks by actively managing and influencing the companies in which they invest. ✨ Value Creation: Private equity firms aim to create value for their investors by buying underperforming or undervalued companies, improving their operations, and selling them for a profit. ✨ Portfolio Diversification: Institutional investors often allocate a portion of their portfolio to alternative investments, including private equity, to diversify their risk and seek higher returns compared to traditional asset classes. ✨ Entrepreneurial Support: Private equity can provide support and guidance to entrepreneurs and management teams, leveraging their expertise to help companies achieve their full potential. ✨ Exit Strategies: Private equity firms typically have exit strategies in place, such as selling their stake through an initial public offering (IPO), a merger, or a sale to another company, with the goal of realizing a return on investment. nxt90days is assisting #privateequity in achieving at least 5 of the 8 objectives. Over 20 years of C-level experience in transforming and accelerating companies. Please let us know where we can assist you! [email protected] or +31 612963683. Let's talk! Armando Voets Maarten Dekker Maarten Poels

Top trends we see relevant to early-stage founders: - "For investors who are doing deals, entry prices, expanded due diligence, thoughtful portfolio construction and ensuring seniority are top of mind." - Not much of a decline in VC dry powder, with a lot of investors "on pause" for an extended period. - "More focus will be placed on capital efficiency and defensibility of a startup's products or services. Being profitable or trending toward break-even will be a strong advantage." - Valuations are holding up at the earlier stages as deploying smaller checks is seen as less risky or "doubling down" on existing underperforming investments. More trends and the data to support it below.

I was excited to share my thoughts on the #KPMGPrivateEnterprise Venture Pulse report with the San Francisco Business Times. The report, which sheds light on challenges and opportunities for attracting investors in a down market, details how VC investment in the U.S. has fallen, making it harder for early-stage companies to secure funding. However, in navigating this journey, private companies can take some practical next steps to prepare themselves for investor interest.    Learn more here: https://lnkd.in/gDjpfKAT #KPMGSanFrancisco #VenturePulse #IPOInsights

An interesting perspective on Private Equity and the challenges and opportunities - it introduced me to a new term The Zirpocorn ( as opposed to the Unicorn) To quote directly from the article; Profitable exits also do not depend on a robust IPO environment. From my perspective, exiting portfolio companies through sales to strategic buyers after making operational and business improvements is even more attractive. And this pathway is set to grow substantially in 2024. Secular trends in the economy such as the reshaping of geopolitics and the emergence of a new generation of artificial intelligence together signal a period of significant restructuring where firms will work to reorganise their assets and capabilities. Overall, the rapidly evolving turn towards greater scrutiny of business models and return on investment is evidence that the days of waiting a decade or more for technology firms to generate profits are over. And that’s good news. More expensive money that leads to more demands to justify valuations through business performance is healthy pressure for private equity managers. Meanwhile, investors will be moved to scrutinise even more carefully the sources of their private equity returns and understand how much of performance is coming from financial leverage, from valuation-multiple expansion, and — most importantly — from operational business improvement. We live in interesting times https://on.ft.com/3ULzKwh

🚀 Forward Consumer Partners Closes Debut Fund at $425 Million - Forward Consumer Partners announces the oversubscribed closing of its debut fund, Forward Fund I. - Launched in June 2023 and closed in December 2023, Fund I surpassed its target, reaching the $425 million hard cap. - Founder Matt Leeds stated: “We are grateful to everyone who has contributed to Forward’s launch, honored by the support of our investors, and excited about what Forward will accomplish in the years to come.” - Diverse global investor support; single close for Fund I, without the use of a placement agent. - Mission: Build impactful brands in collaboration with inspiring leaders, creating meaningful equity value. - Core Strategy: Majority equity investments of $25-100 million in growing consumer brands; ability for larger transactions through a substantial co-invest network. - Fast Forward: Incubation strategy for consumer brands from inception, enhancing innovation and growth. - Team: Imran M., partner Eileen Sullivan, Vice President, Nancy Sun, Vice President Vince Sirianni, Senior Associate Dana Shanahan, Office Manager Diverse experiences from top firms, including L Catterton, McKinsey, KKR, Goldman Sachs, Endeavor, etc. - Advisory Board: Comprising accomplished leaders from consumer and investment communities. Timothy Barakett Joel Clark Olivier Durand Zac Efron Greg Eisner Shu Hung Miguel Leal Maura Mottolese Stephen Schwanhausser Dr. Valerie Oswalt Pat Tenore Jody Williams - Shared Vision: The team at Forward is committed to helping enduring consumer brands progress toward their potential. #privateequity

As we approach the end of a hectic and frenetic year, our editorial team decided to take a pause this week to look back at the dynamic landscape that shaped M&A, private equity, #VC, #recruiting, and #talent in 2023. Cody Crook, managing director of Hunt Scanlon Ventures and head of the firm’s investment strategy group, offered in-depth coverage throughout the year predicting market movements for ExitUp, the firm’s #investment blog. His insight and analysis proved to be prophetic as the year unfolded. Early in the year, Cody dissected the complexities of M&A in a changing landscape, shedding light on strategies for success amidst increasing competition and evolving business models. As the year unfolded, the predictions echoed in his insights gained validation. Despite macroeconomic headwinds and popular sentiments, Cody saw underlying threads that would lead to an intensifying M&A landscape. Reports coming later in the year from KPMG, McKinsey & Company, Morgan Stanley, PitchBook, and Bain & Company confirmed it. Read more >> https://lnkd.in/e2Efp88V Hunt Scanlon Ventures

Attention VCs: The ultimate Track Record Template! 📊 📈 Did you know? Firms with well-documented track records are 𝟱𝟬% more likely to secure funding quickly compared to those without. Experience is a real asset in the venture business. If you have it, it's crucial to showcase it in a structured way. That’s where our 𝗧𝗿𝗮𝗰𝗸 𝗥𝗲𝗰𝗼𝗿𝗱 𝗧𝗲𝗺𝗽𝗹𝗮𝘁𝗲 comes into play, transforming how you manage and present your investment achievements. 🔗 𝗖𝗵𝗲𝗰𝗸 𝗶𝘁 𝗼𝘂𝘁 𝗵𝗲𝗿𝗲 ➡️ https://lnkd.in/eircdUis 📁 What’s Inside? 𝗟𝗶𝗻𝗲-𝗯𝗮𝘀𝗲𝗱 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼: Deep dive into each investment's journey, from funding to exit. Capture essential metrics such as Investment Type, Total Investment Costs, Gross MOIC, IRR, Entry Stage, Last Valuation, etc. 𝗗𝗮𝘀𝗵𝗯𝗼𝗮𝗿𝗱 𝗮𝗻𝗱 𝘀𝘁𝗮𝘁𝗶𝘀𝘁𝗶𝗰𝘀: Visualize success with charts that update automatically, highlighting top investments, growth trends, portfolio overview, and much more. 🔍 Why It's a Game Changer? Your track record is more than a list of past deals & successes - it reflects your strategic vision, diligence, and adaptability. It showcases not just where you’ve invested, but why those investments are meaningful, reflecting your firm’s vision and impact. 🔄 Keeping It Fresh Remember, a great track record is not static. It’s a living document that needs regular updates to reflect new achievements, market trends, and strategic shifts. Our template makes this essential task straightforward and effective, ensuring your track record remains as dynamic as the markets you thrive in. 𝗗𝗼𝗻’𝘁 𝗳𝗼𝗿𝗴𝗲𝘁 𝘁𝗼 𝘁𝗮𝗴 𝘀𝗼𝗺𝗲𝗼𝗻𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗺𝗺𝗲𝗻𝘁𝘀 𝘄𝗵𝗼 𝗰𝗼𝘂𝗹𝗱 𝗯𝗲𝗻𝗲𝗳𝗶𝘁 𝗳𝗿𝗼𝗺 𝘁𝗵𝗶𝘀!👥 #VentureCapital #VC #Innovation #DataDrivenInvesting

This is such useful guidance for founders, especially those raising for the first time. I have said for *years* that founders should, between them, hold at least 50% fully diluted post-money at Series A. Giving away too much equity actually makes you less attractive to investors post-Series A. I once had crossed words at an event with the director of a fund. I would say a VC but it was one of those funds that only invests public sector money as if it is a VC, but without having to account to LPs for its failure to generate returns whilst generating substantial revenues for itself from management fees and investor director day rates. He vehemently disagreed with my rule. But then he had to, given his fund was demanding 15+% for small pre-seed size cheques. I can’t think of any of the companies that I knew and that took money from that fund which still live to tell their tales. I think that says it all.