Michael Dreszer

In the season finale of Brex's Controllers Classified podcast, BCV partner Sarah Hinkfuss spoke with Erik Zhou to discuss the VC investment landscape and how BCV approaches due diligence for growth-stage companies. For founders, there are three things that are important to share with investors: 1. Your unit economics, or how you think about your business drivers. It’s by far the most important thing today and those inputs (e.g. customer cohort data, gross margin, sales and marketing costs) give you a complete picture of the business. 2. Your business model, or how you think about your future. It doesn’t have to be a huge, complicated spreadsheet. Rather, it’s an important instrument to show people how you think about the business. What is your view of the future and what do you believe are the most important drivers of the business? 3. Your memo, or your narrative. A popular format today is to tell your story in a memo, not a deck, and it’s great because the writing process forces more complete thoughts to give investors a full view of your business and vision.

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Yet another Mezz deal done, this time for Highgate & Cerberus Capital Management! Driftwood Capital plays up and down the cap stack (Equity & Mezz Debt / Pref Equity), horizontally across constructs (Acquistion, Development, & Lending), hence true vertical integration with Driftwood Hospitality Management: https://lnkd.in/gcAiuniR

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Institutional money is back! KKR, a prominent private equity investment firm out of New York has reentered the multifamily investment space by acquiring over 5,200 units across the U.S., including Texas and Florida. This move signals renewed confidence in the multifamily sector, as some firms are banking on the dwindling apartment construction starts to boost occupancy and rent growth in the near future. This comes shortly after Blackstone’s $10B purchase of Apartment Income REIT in April. Opportunities are on the horizon, and we will begin to see more as the year progresses. As it is, distressed apartment sales totaled nearly $1B in Q1 alone. https://hubs.li/Q02DKJs50 Interested in learning more about Club Capital? Join our preferred investor club to get access to our latest investment opportunities and our education blogs and podcasts. https://hubs.li/Q02DKMnn0 #PreferredEquity #InvestmentStrategies #CREInvestments

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There is a lot of talk about the PE industry not delivering the exits they promised. PitchBook succinctly put it with the title “Behind the J-curve” in its recent in-depth analysis of distribution activity in private market funds. Another side of that story, particularly relevant for secondary buyers like us, is that many private market funds hold their assets at seemingly inflated valuations. TVPI numbers look great for most funds, but they can’t monetize their holdings anywhere near their current NAV, indicating their estimate of “fair market value” is way too optimistic. There is always a market, the price may just not be where you wish it. To a large degree, the reluctance to exit companies results from having them marked too high. Assets were aggressively written up to look good in the short-term, impressing LPs with “paper gains” to raise the next, much bigger fund. #secondaries #privatemarkets

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Major Update in the European Private Equity Scene Lazard and Elaia Partners are set to introduce a collaborative growth fund named Lazard Elaia Capital, which will begin operations in 2025. Ownership is split with Lazard holding a 75% stake and Elaia Partners owning 25%. Xavier Lazarus, co-founder and Managing Partner of Elaia Partners, will head the fund, supported by a newly assembled investment team. The focus of the fund will be on leading future technology and deep tech companies at the late stage and growth equity phases within the European markets. Some positive news for Europe and a fund focused on innovative tech! #privateequity #funds #Europe #investment #growth Tech.eu

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📈 Retail M&A Spotlight: KKR to Acquire Varsity Brands from Bain Capital for $4.75 Billion📈 In recent years, the sports sector has become a favored target for private equity investments. This trend encompasses various aspects such as team ownership (e.g. Arctos Sports Partners investing into the Sacramento Kings and the Golden State Warriors) and brand and licensing ventures in sporting merchandise and gaming (e.g. Fanatics). Recently, Varsity Brands, a leading provider of sports uniforms for students, announced its acquisition by KKR from Bain Capital for $4.75 billion. Varsity Brands comprises two main businesses: ➡️BSN Sports: Distributes customizable team sports equipment and apparel through partnership brands, including Nike and Under Armour. ➡️Varsity Spirit: Sells cheerleader uniforms and apparel, and hosts educational camps, clinics, and competitions. With an EBITDA of approximately US$400 million, the transaction implies a 12x EBITDA multiple. Notably, this acquisition follows Bain Capital's previous ownership, indicating potential for further growth under KKR’s management to achieve their return targets. 🔗For more: https://lnkd.in/g79vbiGX #MergersAndAcquisitions #VarsityBrands #KKR #BainCapital #SportsApparel #Investment #BusinessNews

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🚀 2023 was a record year for the secondary market with $103B in closed transaction volume. 📈 The secondary market is still in its early days if you consider that VC and PE funds are holding almost $4T in unexited assets. With LPs pulling back new allocations from all but the largest, most reliable funds, it is no surprise that Apollo Global Management, Inc. forecasts the secondary market to double or even triple in size by 2027. 🔑 As LPs want to manage their private markets portfolio dynamically, secondaries represent an exit path for PE and VC funds that cannot be ignored. Having a liquidity strategy should be part of every GP's toolbox to generate distributions for their Limited Partners.

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Congratulations US Middle Market private equity fund manager Monomoy Capital Partners on raising over $2 billion for their fund five! An oversubscribed less than 5 month process in a market where fundraises are extending to 18-24 months is remarkable! It is also great to see legendary fundraising and capital markets leader Steven Marino join the firm on the raise as Director of Investor Relations and also to see fund placement advisory firm Probitas Partners collaborate with Monomoy Capital Partners. Looking forward to tracking this one. #alternativeassets #privatemarkets #fundraising #privateequity #middlemarket #fundmanagers #capitalmarkets #investorrelations #limitedpartners

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Summary: The article discusses the current challenges faced by VC firms in attracting new capital, but highlights how established firms like Kleiner Perkins are still able to raise large funds. It also touches on the potential impact of AI on investment strategies. Key takeaways: Many VC firms are struggling to secure new capital in a tepid IPO environment. Established, brand-name firms like Kleiner Perkins are still able to raise significant funds. AI is emerging as a potential game-changer in the investment landscape. Counter arguments: It may be premature to attribute Kleiner Perkins' fundraising success solely to AI; other factors could also be at play. The article may overlook smaller VC firms that are also finding success in fundraising. #venturecapital #vc #venture #startups #artificialintelligence

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"If you are afraid to change your mind, the more wrong you will become as the world around you changes. Remember how fortunate you are + never forget those who ‘s basic needs are constantly under pressure. #Resist the gentle tug of fatalism. Resist the long slide into complacency. Listen + Learn something. If you are a generous person, your work will outlive you. When we go we can't take anything with us. Give what you have." excerpts from Ian Bremmer’s Columbia | SIPA speech. #InspiredByYou #OnRepeat “To find the best path, you have to avoid the distraction. Creative, non-linear, asymmetric thinking generates creative, non-linear, asymmetric outcomes.” Sahil Bloom in previous post: https://lnkd.in/e8ccSJU6 "#Happiness is like these balloons. If each of us looks only for our own, we will never find it. But if we look for others', we will also find ours." Paolo Casula in previous post: https://lnkd.in/ejg77r4t How should we allocate our time, #talent & treasure to accelerate the #impact & change we seek? And through the process of that allocation, how much time will we spend #listening? #Leadership #Community #Advocacy #Innovation #strategy #power #influence #SystemsChange #economy #diversity #equity #inclusion #communications #Money #CultureofMoney

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🚀 Pleased to share the latest issue of Growthink Capital's M&A Observatory! Here are key highlights: 🤝 Deal Activity: March 2024 saw 784 closed M&A transactions in the U.S., indicating continued momentum. 🏢 Top Industries: Commercial Services, Enterprise Software, Media & Information Services, Consumer Services, and Distributors. 💰 Revenue and Earnings Multiples: Median multiples of Revenue stood at 3.3x, while EBITDA boasted a median of 12.8x, indicating healthy valuations. 💼 Biggest Deals: Notable acquisitions included a $28 billion deal, showcasing strategic moves in connectivity solutions. 📈 From companies founded in the 1800s to those emerging in 2023 and 2024, M&A activity spans across generations and industries, displaying the dynamism of the market 🎯 To explore the sale of your company, liquidity for shareholders, or growth-by-acquisition opportunities please get in touch directly with me, Eddie Clay or Jeff Jones

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Private markets fund managers and limited partners across the globe are no doubt enamored by the fundraising powers of Andreessen Horowitz as limited partners, particularly sovereign wealth funds, insurance companies and others with large minimums are lining up to make commitments and access the various strategies across the Andreessen Horowitz alternative asset supermarket which include #seed, #growth, #crypto, #gaming, #digital #bio, and now raising a private equity fund! I am not sure of the financial #returns of the strategies, but I am sure this private equity fund will be well-received by limited partners (especially #middleeast and #asiapacific) and that will continue the capital flows into the firm's other strategies and overall platform, which are often highly #oversubscribed and are able to charge premium management fees (ie higher than 2% annually) as well as tiered #carriedinterest ie 25% and above for higher than 2.0X/2.5X net performance. #fundraising #alternativeassets #privateequity #a16z #privatemarkets #venturecapital #capitalmarkets #sovereignwealthfunds #insurancecompanies #pensionfunds https://lnkd.in/g8ZaBHiY

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I had the pleasure of speaking recently at the PEI Operating Partner Forum in London about the challenges and opportunities to support our portfolio companies in building greater resilience. Thank you to Jim Corey from Blueridge Partners, and my co-panelists Alan Roux, Peter Colman and Kristen Paladino. Some thoughts from this session: -There is further opportunity to deepen our collaboration with our deal colleagues and portfolio management teams on what will move the dial on performance - active joint problem solving is key to unlocking value with greater speed; -Cash is king in this environment where leverage is going to be more expensive for longer - our CFOs are front and centre, along with trusted partners in our ecosystems; -Ensuring our portfolio companies have the right talent in place to anticipate and deal with multiple continued headwinds is critical; -There are some innovative opportunities to drive value through new digital technologies, like Gen AI, which we should experiment with over the coming period. It's not tomorrow's problem.

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Apollo Global Management, Inc. says households are bullish on real estate prices! My conversations this week with successful developers and real estate investors revealed a growing bullish sentiment on the Miami market. Households are also showing renewed optimism about price appreciation. So, should you buy? While the market conditions are attractive, it's crucial to find a property you truly love. Inventory, particularly for desirable houses, remains tight in Miami. Additionally, if interest rates decrease, we can expect a renewed surge in prices. Ready to invest in Miami? Ask me about the best options for your budget and needs. #MiamiRealEstate #Investment #MarketTrends

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"Between 2015 and 2023, the Venture Capital (VC) industry deployed over $1.8T. By the start of 2024, more than one-third of this investing activity had evaporated in unprecedented portfolio markdowns. As a consequence, hold times are lengthening, which drives down IRRs. This, in turn, grinds dealmaking to a halt. At the time of this publication, new fundraising, especially by new managers, is dead or dying. We are witnessing the most extraordinary cyclical collapse in the history of venture capital investing. Traditional VC models, characterized by their fixed-term, closed-ended fund structures, are outdated and inefficient. The high failure rates and cyclical nature of venture capital bubbles caused by the unicorn investing thesis that underpins the practice of fund stacking and fee raking have cracked open the door of potential disruptive innovation." Click on the link below to read my latest research in Venture Capital 2.0 and learn about how an old fund model - Evergreen Funds - could provide the key to unlocking the future of venture investing. #venturecapital #ventureinvesting #startups #disruptiveinnnovation Sutter Hill Ventures OSS Ventures Kiko Ventures Thomvest https://lnkd.in/egfrb-Ah

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#Charlesbank Charlesbank Capital Partners, a middle-market private investment firm, announced today that it has successfully completed fundraising for Charlesbank Technology Opportunities Fund II. The Fund closed at its hard cap of $1.275bn of commitments from a diverse set of existing and new limited partners, surpassing its target of $1.1bn and initial hard cap of $1.2bn. TOF II is the successor fund to Charlesbank’s inaugural Technology Opportunities vehicle, which closed in 2020 with total limited partner commitments of approximately $700m. TOF I broadened the range of technology transactions Charlesbank pursues, giving it the flexibility to focus on smaller investments in high-growth companies. TOF I is fully invested across 12 platform transactions. TOF II will advance the team’s strategy of investing in lower middle-market technology-focused companies, looking to back innovative companies that have strong leaders, proven business models and predictable financial profiles. TOF II has strong momentum already, having completed four investments and deployed ~20% of total capital commitments. https://lnkd.in/dvx4Si4u

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Congratulations to our friends at $150 billion+ AUM private markets multi-strategy fund manager StepStone Group on closing on $3.3 billion for its sixth venture capital secondaries fund, far surpassing its target of $2.6 billion. It is the largest VC #secondaries fund raised to date, eclipsing the $1.45 billion that Industry Ventures raised for 10th venture secondaries fund last September. The 2021 acquisition of Baltimore-based venture capital #specialist Greenspring Associates has been a brilliant, complementary and highly successful partnership for both firms. And yes, I really like the fact that Greenspring Associates originated and still has a strong base in the #baltimore area. While GP-led secondaries have been far more common in private equity, it is noteworthy that the firm sees a more balanced set of investments across LP-led, GP-led and direct secondaries deals than its predecessor venture secondaries funds. The limited partner list is also remarkable: #Taiwan-based FUBON LIFE INSURANCE CO., LTD. committed $70 million, UK-based Border To Coast Pensions Partnership committed £45.7 million and the NSIA: Nigeria Sovereign Investment Authority and Montgomery County Public Schools Pension Fund both invested undisclosed amounts. Yes, #Nigeria has a sovereign wealth fund investing in alternative assets, private markets and venture capital secondaries - amazing! Prior fund limited partners included the Community Foundation of Greater Memphis, #Finland’s LUT University, the Memorial Hermann Health System, Mercy Health Foundation, @New Zealand Superannuation Fund (NZ Super Fund), #Oklahoma Police Pension and Retirement System, Samford University, School Employees Retirement System of #Ohio and State of Wyoming Treasury. I am sure many of them re-upped and even increased commitment sizing. A world-class list of global limited partners across allocator categories. Well done StepStone Group and see you again somewhere in the world sometime soon! #fundraising #alternativeassets #privatemarkets #venturecapital #capitalmarkets #sovereignwealthfunds #insurancecompanies #pensionfunds #hospitalsystems #superannuation #endowments #foundations https://lnkd.in/gUdJXRw3

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The SomosVC 2023 Annual Report is out! Key findings of the report include: 👉 79% of venture funds over $100 in AUM have no Latino/a investment professionals at all. 👉 Latino/a's represent only 1.6% of all investment professionals at funds over $100M in AUM 💪 Latino/a led firms are more likely to invest in diverse founders - 48% of portfolio company founders identify as underrepresented people of color. 💪 Latino/a-led firms in the SomosVC community have played a pivotal role in job creation, with investments leading to an estimated 51,612 new jobs. Learn more about the report in this Axios piece! https://lnkd.in/e4d58sNd

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