Alex Hernandez

September 17 2024 – 5 Notable Articles To Read Article: Five Point Energy Banks $1.4B for Infrastructure-Development Bets Takeaway: The Houston-based private equity firm closed Five Point Energy Fund IV, surpassing its $1.25B target. The firm has already made at least one investment from the new fund, supporting Deep Blue Midland Basin last year. This joint venture with Diamondback Energy operates over 800 miles of pipelines used for transporting water, a byproduct of oil and gas wells. Source: The Wall Street Journal Link: https://lnkd.in/dKi5pUXi Article: Lufthansa Said to Weigh Investment in airBaltic Before IPO Takeaway: Acquiring a stake in AirBaltic aligns with Lufthansa's broader strategy of investing in national flag carriers, with the potential to increase ownership over time. Earlier this year, Lufthansa received approval to acquire a 41% stake in Italy's ITA Airways, the successor to Alitalia, further expanding its portfolio of investments in airlines based in Switzerland, Belgium, and Austria. Source: Bloomberg Link: https://lnkd.in/de8uJYug Article: Oaktree Capital Management, L.P. Alums Get €400M of Commitments for Debut PE Fund Takeaway: The fund completed a second closing over the summer with institutional investors and family offices, securing more than €125M in additional commitments for Sienna Private Equity Fund I. It has already invested in two portfolio companies, EIGHT ADVISORY and ECT Group, and is in exclusive talks for additional transactions that could be finalized by the end of the year. Source: Bloomberg News Link: https://lnkd.in/d6YCjT25 Article: UBS Has an AI Tool That Can Scan 300,000 Firms in 20 Seconds Takeaway: UBS Group AG has created an artificial intelligence tool designed to assist in presenting potential M&A deals to clients, capable of analyzing a database of more than 300,000 companies in under 30 seconds. Source: Bloomberg Link: https://lnkd.in/d5DRBKEz Article: Crypto Fraud Increased 45% Last Year to $5.6 Billion, FBI Says Takeaway: The FBI received over 69,000 complaints from users, with the majority of financial losses occurring in investment scams, according to their findings. Source: Bloomberg News Link: https://lnkd.in/de5DBZ5B #news #business #research #ai

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Anyone interested in PE & the Energy sector. Today I covered M&A deal between large players in the industry. Read the full story below: Pelican Energy Partners' Nuclear Move: MillenniTek Acquisition Fuels Atomic Ambitions Pelican Energy Partners has made a strategic acquisition of MillenniTek, LLC, a leading developer and manufacturer of advanced materials for the nuclear energy industry. This deal marks Pelican's second investment in the Knoxville, Tennessee area within eight months, signaling a strong commitment to the region's nuclear sector. Key points of the transaction include: - MillenniTek, founded in 2010 as a carve-out from Dyson Group PLC, has doubled its production capacity and expanded its ceramic product lines. - Steve Getley, MillenniTek's CEO and President, will retain leadership and significant ownership, partnering with Pelican to drive growth. - The acquisition aims to bolster MillenniTek's expansion in both domestic and international markets. - Reed Smith LLP served as legal advisor to Pelican in this transaction. This acquisition highlights the growing interest in nuclear energy supply chains among private equity firms. For investment bankers and industry analysts, it suggests potential for further consolidation and investment in specialized nuclear technology providers. The deal also underscores the strategic importance of the nuclear sector in the broader energy transition landscape, potentially influencing future M&A activity and capital allocation in the energy equipment and services sector. https://lnkd.in/eYnC2VwP

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MARKETING ALPHA BRIEFINGS: DALLAS-CHICAGO-MIAMI-NY-SF How new and smaller VC, PE and HF managers get results raising assets. "Pitching", "posting" & "conferences" don't raise assets.https://johnsn.com/execution STRUGGLING and FAILING TO RAISE ASSETS? Let’s get real: For managers with AUM between $0 and $50 million, raising assets is HARD AND A CONSTANT STRUGGLE. The fundraising climate is crowded, hyper-competitive, complex and complicated. Investors are risk averse, stringently selective and idiosyncratically demanding. Plain and simple: It's more difficult than ever before for new and smaller managers to raise assets and it's more challenging than most understand. The fact is the majority of small managers fail to get AUM beyond personal capital long with small amounts from family and friends even when they have exceptional performance. The primary reason for failure raising assets: Lack of a marketing process leading to poor and/or inconsistent marketing execution.   81% of new and smaller managers do not have a marketing process. Source: AIMA   Straight talk: There is a lot of BS, hype and completely wrong information about marketing and fundraising for managers with less than $50 million AUM. Johnson & Company provides “Marketing Alpha Briefings” that eliminate the BS and hype, separates fact from fiction and myth from reality to address all the marketing and fundraising requirements and challenges facing sub-institutional managers within a data-driven, "fact-based" process supported by independent "high-integrity" research and 25+ years experience. “Marketing Alpha Briefings” are NOT a boot-camp, class, seminar, workshop, conference or "event".   "Marketing Alpha Briefings" = A 90-day process that optimizes marketing process execution for new and sub-institutional managers to maximize the success, efficiency, economy, expedience and effectiveness of fundraising. Through the 90-day process, every strategic, tactical, operational and financial aspect of marketing and raising assets for a small manager with less than $50 million AUM is covered in "manager-specific" detail with structure, focus and discipline.    ONLY 4 MANAGERS ARE PERMITTED PER LOCATION. For new and smaller managers with less than $50 million AUM who are struggling and failing to raise assets, "MARKETING ALPHA BRIEFINGS" are not just the ONLY opportunity to get beyond the BS, hype, wrong information, "pitching", "posting" and conferences but THE opportunity to get the MARKETING FACTS, PROCESS and ASSISTED EXECUTION in combination with "step-by-step"/"day-by-day" GUIDANCE and INSTRUCTION that delivers RESULTS. FOR "MARKETING ALPHA BRIEFING" DETAILS: https://lnkd.in/gRetGVzA FOR A CANDID CONVERSATION: [email protected]

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- Mega Trends in Infrastructure Investing - The escalating trends in infrastructure investment in the United States are creating opportunities for private investors, with population migration playing a pivotal role in shaping the future. Recent years have seen a significant shift in U.S. migration patterns, with families, professionals, and businesses relocating to areas offering affordability, quality of life, and economic prospects. This migration underscores the critical need for infrastructure development in regions experiencing substantial population growth and economic advancement. Texas serves as a prime example of this trend, experiencing rapid population expansion in 2023. The state attracted nearly half a million new residents, with over 160 companies relocating their headquarters there between 2020 and 2023. This influx resulted in employment growth twice the national average. The impact of migration trends is particularly pronounced in the domain of water resources. Many rapidly growing U.S. cities, such as San Antonio, Fort Worth, and Phoenix, are facing water scarcity challenges despite their rapid expansion. A report by the Center for Energy Studies at Rice University, as highlighted by the San Antonio Express, warns that failure to address water supply deficits could lead to a substantial $160 billion annual GDP loss. Additionally, insufficient investment in water distribution infrastructure could cost Texas a staggering $320 billion in GDP losses over the next 15 years. By identifying, tracking, and responding to migration trends, investment opportunities can be leveraged to address the infrastructure challenges facing the country. Key areas for investment include water resources, transportation and logistics, rural digital infrastructure, and more, offering avenues for sustainable growth and development. (Source: https://lnkd.in/eW2dZXvK)

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Key Investment Highlights from The Seraphim Space Index Q2 2024 🌌 Let's take a closer look at the key highlights from the latest quarter: 💰 $8.5bn invested in TTM to Q2 2024 👩‍💻 174 deals in Q2 2024 🛰 $2.4bn invested in Q2 2024 🤝 385 deals in Q2 2024 compared to 320 in Q1 2024 🚀 Space Pioneer closed the biggest deal of $208m in Q2 2024 💲 Average deal size is $18m ◾ Median deal size is $5m in Q2 2024 Check out the full Index here - https://lnkd.in/d-vf-mVN

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With a dearth of exit opportunities the M&A window has opened up slowly in 2024 with energy leading the way globally supported by capital investment, regulatory tail-winds, and geo-political climate.

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After raising nearly $1B in capital in recent months, some acquisitions are especially fulfilling - this one being the case. But, first, a thanks and brief recap. In a stage in life I’ve come to learn as 'post-achievement,' my good friend Damien Rocchi told me recently: “Jeff, you may not feel the need to share what’s been going on in your world, but there are probably many people who would like to know because they care about you.” Thank you, Damien, for the wisdom and kindness. Now, for the recap. Hard to believe, but this year marks a decade since I signed the contracts governing the sale of my former company to Baker Tilly. The years following the merger brought great experiences, scale and phenomenal people into my life - both professionally and personally. Lots of good decisions (and some mistakes) that led to a tremendous journey which included: * The privilege to work and create value across 100+ countries * Effecting large-scale, positive impact spanning multiple industry sectors, companies and the teams within them * The invitation to consider the global CEO role for a $4B organization If someone told me in 2014 that this is what would be ahead, I may not have believed it. The years since the merger were indeed great - and the people even better. My hope during the time we worked together is that I brought each of them some small measure of the significant enrichment they brought me. As in life, one’s career has seasons. In 2020 it was time for a new one to begin in mine - even if such change would not be immediate. In long being a 'free agent' post-close in the sale of my company, the pandemic marked a point of observation, reflection and clarity: it was time for a change. Specifically, it was time to return to industry as CEO through acquisition, with a focus on sectors aligned with my experience. The aim: find a company that does good work but facing an evolutionary hurdle - whether in leadership succession gap, growth, recapitalization or otherwise. Once identified, acquire it, lead it and honor the legacy of those who founded it by generating outsized market value and positive impact post-close. And to such work I took, starting in earnest in mid-2022 and joining forces with a small but mighty group of great people. Together, we raised nearly $1B of capital in support of single asset fund deals where we could lend our experience in turning good companies to into great ones. While there have been many deals in recent months, one where I can combine my love for healthy company cultures with my passion for value-creation and all things tech, mobility, space and the conquest of flight, this is an especially fun one share. Heartfelt thanks to those of you who have been part of the journey thus far, and who continue to be part of it going forward. Means a great deal. Excel always and in all ways - and keep in touch. https://lnkd.in/dsGiYnD2

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Avoiding bloody water (lots of competition) might be the most high leverage way to engineer success…here’s our blue ocean strategy: Avoid venture backed players (who can spend on unsustainable growth practices) by targeting niche industry verticals Avoid private equity buyers (who drive up valuations via auctions) by staying under $3M ARR What else can be layered in to avoid other dimensions of competition? #microsaas #saasgrowth #acquisitionentrepreneur

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Among the many inefficiencies weighing on the heavy construction sector, equipment maintenance management is one of the more costly, particularly for heavy equipment dealers who bear the primary responsibility for managing the maintenance of the equipment they sell. We are pleased to have Digital Iron join C2V's portfolio. Ditial Iron seamlessly integrates machinery manuals, CRM data, and customer ERP systems to create a centralized source of equipment specifications, maintenance parameters, and field usage data and provides a natural language interface for researching these issues (the gen AI piece). Once dealers have established the cause of each issue, Digital Iron will automatically check dealer inventory and third-party suppliers for availability, lead time, and price of the necessary parts. This information can then be instantly shared with customers for approval and immediate order of needed parts. In addition to saving hours (often days) identifying and sourcing replacement parts, Digital Iron’s AI models also compare equipment usage information to manufacturer useful life/replacement recommendations for each component and prompt dealers to proactively suggest parts replacements to customers, allowing them to monetize all of the additional (and substantial) post-sale revenue for each piece of equipment they sell. https://lnkd.in/e2QJeQut #ai #construction #investing

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VC world can be cruel and unforgiving. With LPs more and more pushing for distribution and liquidity, fund managers in the mid-tenure of their fund with zero DPI and TVPI around 1.0 would have much more difficulty to raise new fund. The ability to fundraise is one of the crucial indications and validation of the job for VCs. Key highlights from the article below: Thirteen percent of venture General Partners (GPs) no longer plan to raise another fund due to LP pullback. This rate has doubled since H1 2023 when only 6% of GPs had no plans for another fund. Nearly 44% of venture firms surveyed in mid-2023 had previously postponed their fundraising plans due to concerns about overexposure to the asset class. Many emerging managers entered venture capital in 2019 or 2020 when the LP market supported more funds. However, slow exits in the first half of 2024 have led to challenges in raising second funds without significant cash distributions to LPs. Some venture GPs are now actively participating in the secondaries market to demonstrate returns. Despite the challenges, GPs who secured fresh capital remain optimistic. They expect the 2023 and 2024 vintages to be the strongest return years since 2019. 🚀📈 #VC #VentureCapital #Fundraising #LPs #EmergingManagers #TechInvestment #MarketTrends #CountdownCapital #IndustryInsights #JetVentures #JetInvestment‍‍‍‍‍‍

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#orion #Sweetwater_Royalties Orion Resource Partners, a global investment firm specialising in metals and materials, has sold an 8% minority interest in Sweetwater Royalties, a private industrial minerals royalty company, to a Canadian pension fund for $100m. The transaction implies an approximately $1.9bn enterprise value for 100% of Sweetwater Royalties, with Orion retaining a 67% majority ownership share in the asset, having sold a 25% stake to Ontario Teachers’ Pension Plan in March 2023 for approximately $220m. https://lnkd.in/gkKMP3Tr

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What’s the key to successful institutional investing? How large does an endowment need to be for optimal returns, and what goes into building the perfect investment platform for family offices and endowments?   Find out in the latest episode of the 10X Capital Podcast, hosted by David Weisburd, with Mark Shoberg, CIO & Partner at Capital Creek Partners.   #LPs #VC #OpenLP

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According to Nicholas Colas, co-founder of DataTrek Research, “the magic number is 90%. When oil prices go up 90% over a 10-to-12-month period, the U.S. has a recession.” Read more here ➡️ https://bit.ly/3Ao7aHp

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Too many small and mid-sized businesses struggle with capital constraints out of fear and misunderstanding. Sourcing the capital required to remove those constraints is key to unlocking the value creation potential of these companies. https://lnkd.in/gRYTKEmN #smallbusiness #businesstransformation

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#Private_equity Private equity’s $2 trillion pile of cash is set to fuel M&A opportunities in 2025. Private equity firms are sitting on an unprecedented war chest: roughly $2 trillion in uncalled capital. Often referred to as “dry powder,” this cash pile has been accumulating since the last big global mergers-and-acquisitions blowout, in 2021, when volume reached a whopping $5.9 trillion, according to Dealogic. The following year, activity plummeted 38.8%, and it’s been relatively quiet ever since. “We had a general slowdown in private equity exits in 2023 and 2024,” says Alain Dermarkar, US co-head of Private Equity at global law firm A&O Shearman. High interest rates were an issue; steep borrowing costs and lower returns created valuation mismatches, ultimately reducing the size, scope, and appeal of private equity deals. https://lnkd.in/dzxSUYkP

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Tucano completes the sale of all of its shares in Sundwiger Messingwerk to KME Acquired in November 2020 as a corporate carve-out, Sundwiger Messingwerk’s EBITDA increased more than sevenfold under Tucano’s ownership. Founded in Hemer, Sundwiger Messingwerk, with over 350 employees, generates annual revenues exceeding EUR 200 million. Its products, widely used across industries including automotive, electrical, and telecommunications, have established the company as a leader in copper alloy manufacturing. Acquired by Tucano and fellow investors in November 2020 via a carve-out from the Diehl Group, Sundwiger Messingwerk was transformed into a highly profitable enterprise under Tucano’s ownership. Effective January 6th 2025, Tucano announces the successful sale of all of its shares in Sundwiger Messingwerk, a leading German manufacturer of high-quality copper alloys, to KME Group, one of the world’s largest producers of copper and copper alloy products. Special thanks go to the management that has relentlessly and passionately driven the transformation of Sundwiger Messingwerk over the past years!

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