BNN Bloomberg’s Post

Capital markets funding for both venture capital and private equity are beginning to show signs of life after a very challenging three years. There is occasional talk that the best years in the private markets are behind us. Don't believe it for a second... If anything, the largest players on Wall Street continue to lean into private markets funding. One more piece of evidence is the attached article from The Wall Street Journal detailing Goldman Sachs increased initiatives in private financing. From the article: "Goldman expects the surge in demand for capital to continue. Many on Wall Street anticipate a dealmaking rebound, bringing with it a rush of private-equity activity." A few decades ago, the best way for scaling companies to secure sizable growth capital was to tap into the public markets through an IPO. That is no longer the case. Yes, the last few years of private markets funding was a challenge. However, the long term trend of staying private longer is still firmly in place... Endeavor Colorado Zeb King Tegan Stanbach Kathryn Dickson #privateequity #venturecapital #innovation #entrepreneurship #founders #startups #investing https://lnkd.in/geJcNdd3

Centana Growth Partners, a Palo Alto, San Francisco, CA- and NYC-based specialized growth equity firm investing in the future of finance, closed its third fund, Centana Growth Partners III, L.P., at $600m. Like Centana’s prior funds, Fund III focuses on companies with a strong track record of growth, experienced management teams, and meaningful customer traction with $7 to $75 million in recurring revenue. Investments will continue to target businesses in core verticals such as asset management, insurance, banking, digital identity, wealth management, payments, capital markets, and enterprise technologies that support these sectors. Centana typically makes targeted investments of $10 million to $50 million or more. Portfolio companies should benefit from access to Centana’s Strategic Network and partners’ experience working with companies in this ecosystem. https://lnkd.in/gkh3eNE8

🔥 8 Reasons why Secondary Transactions are hot right now 🔥 There are several factors contributing to the increased activity in private market secondary trading (sharing this segment from our previous Last Money In Media post on secondaries): Increased Liquidity Needs & Demand: 1) Staying Private Longer: IPO timelines have shifted from 5-8 years from inception to IPO to 8-15 years until IPO.  2) LPs want Liquidity: Many venture capital & private equity funds invested heavily in the past decade. As these companies mature, investors in those funds might be looking to free up capital for other investments. Secondary markets provide a way to achieve this before an IPO, which again, now is taking a lot longer than previous cycles. 3) Lack of M&A/IPOs: Given the lack of M&A & IPOs, selling secondary is a way these funds can distribute capital / DPI to show realized returns to LPs after many years being illiquid. 4) Employee Liquidity Events: Employees of private companies often receive stock options or restricted stock units (RSUs) as part of their compensation. Secondary markets allow them to sell these holdings before an IPO or acquisition, providing them with liquidity and potentially some return on their investment. TLDR: due to lack of M&A & IPO’s, these employees have personal needs for cash and therefore many are motivated to liquidate earlier via secondaries. 5) Faster Return Potential: Secondary transactions can offer investors a faster route to returns compared to waiting for a company to go public or be acquired, which can take a long time and is unknown. 6) Increased Availability of Capital in Secondary Funds: Dedicated secondary investment funds have raised significant capital in recent years. This influx of capital allows them to be more active buyers in the secondary market, further fueling its growth. 7) Online Secondary Trading Platforms: The emergence of online platforms for secondary transactions has increased accessibility and transparency, making it easier for investors to find potential buyers and sellers. 8) Great Deals: Due to inefficiencies in the secondary markets, there are great deals to be had. -- Powered by Sydecar, Last Money In Media is the most actionable venture capital newsletter. Written by Zachary Ginsburg and Alex Pattis who have deployed >$200M across 750+ SPVs.

How secondaries are transforming private equity: https://ow.ly/9zar50TkhZk #iqeq #oneiqeq #secondariesfunds #funds #privateequity

Raising Growth Capital Many founders hit a wall when they reach the middle market stage (generally speaking, $10 million to $500 million in revenue, depending on the type of business). In order to get to the next level, they need to raise capital to upgrade research and development, production capabilities, sales and distribution, and create a deeper management bench. Pulling this off successfully can set the stage for significant wealth building and ultimately selling the business for a higher valuation or launching a successful initial public offering. An investment banker can help you determine the right amount to be raised and how best to put it to work to meet your growth goals. They have the expertise and benefit of having seen what has worked with companies like yours and can help you apply it. A good banking partner can help with a variety of these needs, ranging from project finance; bank, senior, subordinated, and mezzanine debt; all the way up to structured, preferred or common equity. Bankers can help you raise funds from a variety of sources, whether banks, other institutions, funds, or the public market. They can also help you structure deals to improve your liquidity, diversify your concentration risk, and incorporate tax efficient strategies.

Despite economic uncertainties, M&A in wealth management remained robust in 2023, driven by increased private equity interest and demographic shifts among financial advisors. This trend is expected to continue in 2024 as RIAs seek to manage rising operational costs and meet growing client demand for specialized services. As we go forward, strategic acquisitions in private credit and fintech are poised to reshape the industry, with AI innovations and venture capital fueling future growth. #WealthManagement

Private equity in the middle market often offers unique opportunities for alpha generation, especially when working with founder-involved companies. Morgan Stanley’s research indicates that these partnerships often lead to greater revenue and EBITDA growth. The key? A specialized strategy that includes deep due diligence, aligning incentives, and hands-on operational support. Check out the full paper to see how focusing on founders could enhance your investment strategy: https://lnkd.in/gEsn_CQ9 #PrivateEquity #MiddleMarket #InvestmentStrategies #InsuranceAUM

Cash Burn vs Fundamentals of Business #finance #fundamentals

Private Credit Heir to Finance Billions Builds New York Private Credit Firm : heir to one of Asia’s biggest finance fortunes is building a firm for private credit bets with backing from his billionaire family, formed K8 Capital in New York as a hybrid private credit and venture capital firm after helping to manage part of the clan’s fortune : world’s richest families are eschewing larger funds to make their own investments in private credit as banks curtail lending. It’s grown into one of Wall Street’s hottest trades in recent years, with the private credit industry now worth more than $1.5 trillion : highlighting the rising influence of wealthy dynasties’ younger members: NYU Stern grad Andre Koo Jr., 28, recently started K8 Capital : Investment firm is looking to raise $50 million for debut fund formed K8 Capital in New York as a hybrid private credit and venture capital firm after helping to manage part of the clan’s fortune