Reilly Erhardt, CPA

Check out May's Investment Banking Update from Fairfield Investment Banking Society, where we discuss a recent Blackstone acquisition, Linqto's IPO on the NYSE, and much more! #privateequity #investmentbanking

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Over the past six months, Revolution Capital Group has evaluated 160 opportunities in the Philadelphia area, totaling approximately $1.2 billion, with an average deal size of around $7.5 million. From a strategy and risk perspective, 6.2% of the opportunities were "core" deals; 11.4% were "core-plus"; 67.6% were "value-added"; 14.8% were opportunistic or development-focused. Out of these 160 deals, we've submitted 24 LOIs across various asset classes, including multifamily, office, retail, hotel, and land. Five of these LOIs contemplated some type of co-investment, joint venture, and/or seller participation. We continue to seek out new mixed-use opportunities with a minimum capitalization of $5M. We are always open to collaboration with strong Partners to deliver the best execution for all transaction participants. For more information or to share an opportunity, please reach out to ckeating@revcapgrp.com or gwilson@revcapgrp.com. Gray Wilson Connor Keating

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Just in: Blackstone and Goldman Sachs back $500m private financing for KKR’s acquisition of Perpetual Limited Structured as a covenant light unitranche, the debt package provided by Blackstone and Goldman Sachs Asset Management is a blend of senior and junior priced around mid 500bps, reports Bloomberg. The ticket is only for the corporate trust unit of Australia based Perpetual, while the whole transaction including the wealth management unit could reach around $1.5bn in deal value. Once again we are seeing more borrower friendly terms in the private credit market as lenders compete for the best deals to deploy dry powder and are willing to make compromises with sponsors to push the deals over the finish line. As we gradually shift into the rate cuts cycle, it’s possible we’ll be seeing more competitive terms by credit managers to make deals happen. Follow for more insights in private credit and alternative investment. #privatecredit #privateequity #investmentbanking #assetmanagement #interestrates

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Companies, it's time to leverage private liquidity transactions to your advantage. By offering private #liquidity options, you can provide #employees with the flexibility to convert their equity into cash. This can help retain top talent and make your company more attractive to potential hires. Private liquidity transactions can empower your team, enhance job satisfaction, and foster a culture of loyalty and growth. Invest in your people, and they'll invest in the company's success. If interested in learning more, check out Shane Larkin’s ‘How Liquidity Can Help Recruiting and Retention’ blog: https://bit.ly/4ayThUZ #HR

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Laybuy Issues Receivership Notice Elliot Reader, Senior Vice President at investment bank, Houlihan Lokey discusses his thoughts on the future viability of BNPL: “The trajectory of the buy-now-pay-later market will be largely dependent on the level of regulation placed on the sector – a key discussion point between political parties at the moment, and a delicate balancing act between protecting consumers and providing them with access to suitable financial products. Whilst there is a recognition that regulation will happen in some form, the format of it will decide whether BNPL in its current form will remain a viable product to offer in the UK. The current delays to regulation continue to create uncertainty for the sector, and when larger banks and institutions are making decisions on where to invest – this uncertainty creates challenges. There is no doubt there is a consumer demand to service. However, 25% of UK BNPL users have been charged with late payment fees according to research by the Centre for Financial Capability, which indicates there is a need to either improve underwriting and affordability standards or educate borrowers on the potential implications and consequences of using such a product. Fulfilling this consumer demand will remain an opportunity for lenders to be serviced through some form, but until the regulation is understood, it remains to be seen whether or not BNPL will sustain its popularity.” https://lnkd.in/eJz4eYam #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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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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Following a difficult 2023, institutions that can provide liquidity or have the flexibility to deploy additional capital will be able to capitalize on some unique and compelling risk-return opportunities over the next several years, according to a panelist discussion at last week’s Connect Money Real Asset Capital Raising event in Chicago. Marc Turner, Origin Investments, Alexis Sofyanos, TruAmerica Multifamily, Corey Nolen, Cove Capital Investments, LLC., Geoffrey D. Flahardy, ExchangeRight Real Estate #alternativeassets #realassets

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Dive into Colleen Baker's latest essay, "Net Asset Value Financing and Private Equity," exploring the rise of NAV financing in the $8 trillion private equity market. Understand its potential benefits and risks, from liquidity solutions to financial market instability, collateral valuation challenges, agency costs, and more. "Some forecast that its use will 'be ubiquitous among private equity funds within the next five years' and that the market size of this 'esoteric product' will reach about $700 billion by 2030." "The NAV finance market’s incursion into the private equity space blossomed during the COVID-19 pandemic, an economic environment in which exiting portfolio investments proved challenging and liquidity needs elevated." Read the essay here: https://lnkd.in/e_z2jt62 #PrivateEquity #NAVFinancing #DebtFinance #FinancialMarkets #PrivateEquityFunds 

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In our recent whitepaper, Anne Duggan, CAIA and Ethan Sales, CFA look at the differences between large and small higher education endowments, highlighting how these variances can affect short- and long-term performance. Read their assessment of year-on-year shifts in the endowments’ asset allocation, how this aligns with enhanced opportunities for long-term growth and why smaller endowments can stand toe-to-toe with any organisation if equipped with the right partner. See more here: https://lnkd.in/dp2cAJ-R #endowments

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Read this new white paper by my friend and eminent practitioner-scholar Michael Mauboussin, coauthored with Dan Callahan, CFA. The paper explains how to apply valuation multiples like P/E and EV/EBITDA ratio for modern corporations. The message is consistent with my own research--be careful in mechanically using accounting numbers for modern tech companies--their accounting suffers from numerous deficiencies. This paper suggests precautions an analyst must exercise in using numbers and ratios, while offering concrete solutions.

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WSJ Pro Private Equity cited SLB Capital Advisors with Tuesday's "Big Number" regarding sale leaseback activity for Q1'24. Dollar volume was down in the period due to the lack of mega deals, while transaction count was down only 12% YoY. Current signs point to a more conducive M&A and financing environment leading into the back half of the year, which would positively impact the SLB market. Learn more at SLB's Live Quarterly Sale Leaseback Market Update Call tomorrow (Friday 6/7) at 1pm ET (10am PT); registration link here: https://lnkd.in/eWtWWe2e #privateequity #mergersandacquisitions #saleleasebacks #netlease #reits WSJ Pro Private Equity: https://lnkd.in/e5SHwj5

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An infusion of PE capital can supercharge your company's growth, but finding a partner whose investment philosophy aligns with your vision is key. #privateequity #buyside #mergeracquisition https://lnkd.in/ep5tynrn

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PE News Weekly 📈 📍 Oak Hill Advisors leads $1bn debt package for Vista Equity's $1.25bn Model N acquisition, set to close mid-2024. Other lenders include Brinley Partners, KKR, Morgan Stanley, and New Mountain Capital. The package consists of a $735m loan, a $150m delayed-draw term loan, and an $80m revolving credit facility. Pricing is 5 percentage points over the Secured Overnight Financing Rate, with leverage at around eight times based on $90m EBITDA. 📍 Blackstone's credit unit plans to sell $450m of loans at a discount to provide liquidity to investors in an older fund. Evercore is assisting in finding a buyer for the loan portfolio, acquired for $2.4bn from NewStar Financial in 2017. The portfolio includes debt from companies like Arriva, American Achievement, BMC Software, and Charter Communications. Blackstone has selected a bid valuing the portfolio at around 60 cents on the dollar, with the transaction pending closure. 📍 Private Equity giant KKR is preparing to propose commitments to the European Union to secure early approval for its €22bn acquisition of Telecom Italia's landline network. These commitments aim to address EU concerns regarding potential price hikes in the wholesale telecoms market. If accepted, the deal could be approved next month, averting a lengthy "phase 2" investigation. The EU may extend its decision deadline by 10 days to mid-June if KKR's commitments are deemed acceptable, although final approval remains uncertain. #privateequity #privateequitynews #rawselection

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🌟 Private equity is primed for a major comeback in 2024, catalysing opportunities across the capital markets! 📈 As market sentiment improves and the pipeline builds on both the buy and sell side, PE dry powder of $1.2T is poised to be a key driver of M&A activity. Sponsors are under pressure to monetise portfolios and return capital to LPs. 💰 A few key themes are emerging: 1️⃣ Sponsor-driven M&A is rebounding as CEO confidence rises and debt financing markets improve 2️⃣ IPO markets are reopening, providing a viable exit path. "Private IPO" capital raises also allow liquidity for existing shareholders 🚀 3️⃣ The rapid growth of secondary markets like continuation funds gives GPs flexibility to hold trophy assets longer 🏆 4️⃣ Dividend recaps have reemerged as companies take advantage of strong leveraged loan demand to return cash to sponsors With $6T in PE AUM and a tremendous dry powder surplus, financial sponsors are poised to be a major catalyst across the capital markets in 2024 and beyond. 🎉 #PrivateEquity #CapitalMarkets #IPO #SecondaryFunds #DryPowder #DividendRecap

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Part II of our South Carolina M&A Market Report reveals opportunities for strategic acquirers, financial sponsors, and investors in the Palmetto State. South Carolina's buy-side M&A market shows promise despite lagging regional peers like Florida and Georgia. Download the full report here: https://lnkd.in/dSJTGeiR #SouthCarolina #M&A #Investment #BusinessGrowth

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Recent forecasts show differing views on the likelihood of a U.S. recession next year: - Goldman Sachs predicts a low 15% chance. - Bloomberg and market data both suggest a higher probability, around 34-35%. For software development agencies, who serve clients in the U.S. and Europe, these statistics are vital for strategic planning. A lower risk of recession indicates a stable economic environment. This stability encourages clients to invest in new projects and tech innovations. On the other hand, a higher recession risk might prompt them to adapt by: - Diversifying the client base, - Focusing on cost efficiency, - Offering scalable solutions. By monitoring these economic indicators closely, we can anticipate market trends and adapt our strategies. This proactive approach helps us remain resilient and competitive in a fluctuating global market. #strategicplanning #marketing #sales #economics

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North American M&A activity is surging, with a nearly 10% YoY increase in deal activity for Q1 2024. Fueled by pent-up demand, strong corporate balance sheets, and renewed optimism. 📈 Click here for further insights: https://lnkd.in/eRHM9SqV Is your company ready to capitalize on this resurgent M&A market? Let's connect! #MergersandAcquisitions #DealMaking #MarketTrends

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