Jason Weinstein

We’re excited to partner with Tidemark on the first-of-its kind Vertical & SMB SaaS Benchmark Report! Congrats to Michael Tan, David Yuan, Andrew Walsh and Courtney Mullin for putting this together. If you are a Vertical SaaS CEO or executive looking for benchmarking data to help make product/strategy decisions, then this report is a must read for you. Just leave a comment "Vertical SaaS" in this post, and I'll share the link to the full report in your DM.

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We're proud to celebrate Sector Lead, Matt Witheiler's fourth consecutive naming to Forbes’ ‘The Midas List: The World’s Best Venture Capital Investors in 2024'. Kudos Matthew Witheiler - this is testament to your enduring impact on the late-stage VC industry. https://lnkd.in/eBdHwBG4 Wellington Management did not pay a fee to be considered. Winners were selected by a data-driven approach, the Midas List is produced from a combination of public data sources and the submissions of hundreds of investment partners across hundreds of firms each year. This award was announced on June 4, 2024, a submission made in January 2024 and is based on 5 years of trailing data. The award may not be representative of any one client’s experience. The award is not indicative of Wellington Management’s future performance. Past performance is no guarantee of future results.

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ANNOUNCEMENT- I’m delighted to share that Asset Class has partnered with Palantir Technologies to bring AI to the Alternatives and Private Capital Markets. At Asset Class we will integrate the AIP platform and Foundry capabilities of Palantir with our Fund Operating System (Fund OS). We will work with the AIP Platform and Palantir's Foundry Ontology to support highly complex tasks / co-pilot features that will allow us to leverage the FULL dataset that comes with the Asset Class Platform. By linking EVERY step of the Investor and Fund journey on a SINGLE platform, we have a uniquely complete dataset that can inform our AI actions. Over time we will integrate this as part of our Asset Class Network. This will continue to ensure Asset Class is a far more powerful system than any other in the market. We are a platform - not just an app. In the near future, we will be an AI Enabled, Networked Platform I cannot wait to bring the power of AI to our platform to enable our clients to super-charge their investment in our platform. See announcement here: https://lnkd.in/eCSy5Tnu

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All areas of commerce are benefitting from data analysis, and our industry is no different. And when it comes to hard data, Henry Schwartz is among the very best. Good, punchy interview here fresh from the OIC on many hot topics in the listed options space, including the rise of the "ProTail" customer using options strategically. #Options #OptionsStrategies #Cboe #SPX #VIX #XSP #OIC #0DTE

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Reflecting on the enriching discussions at the recent PEWIN - Private Equity Women Investor Network CIO Roundtable in Boston. It was a joy to hear from panelists Letitia Johnson (Amherst College), Deb Shufrin (Colby College), Abigail Wattley (Williams College), and moderator Sarah Samuels, CFA, CAIA (NEPC, LLC). Some of my key takeaways: From the CIO perspective, alignment with the board is paramount. Portfolios experience ebbs and flows, emphasizing the necessity of a board committed to long-term strategies. Data underscores the repercussions of misalignment—allocators often undermine value by prematurely exiting positions for liquidity needs or reacting impulsively to market fluctuations. Across the board, CIOs prioritize firms that can articulate their competitive edge, foster sustainable organizations with top-tier talent, culture, and succession planning, and demonstrate agility in evolving markets. A robust LP base providing long-term support and institutional guidance is also crucial. Success isn't about funding billionaires—it's about supporting determined individuals committed to sustained success. Privates demand more than short-term commitment—they require a relentless desire to succeed over time. For a deeper dive into the role of CIO, I highly recommend The Counting House by Gary Sernovitz. #CIOInsights #PEWINRoundtable #InvestmentStrategies

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PE - Hedge Funds Hit by Lack of PE Exits (and one way that PE firms can boost exits) Financial Times: https://lnkd.in/edACss_X FYI - one way to get more PE exits is for the PE fund to have a domain expertise GTM and have deep knowledge on how to increase the Revenue Growth of portfolio companies which boosts cash, profits and margins. --- #pe #privateequity #business

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The industrial M&A market has slowed in 2024. However, there are positive expectations for 2025 due to several significant trends. See the latest report

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Secondaries and structured liquidity solutions provide creative portfolio management tools for both sponsors and investors as they alleviate the duration mis-match problem particularly exacerbated by the sustained high base rate environment. 

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Personas can help you quickly assess private wealth investor types to tailor advice and address asset allocation, portfolio strategy, construction and implementation. We've categorized the most common into three main investor types, or personas: the optimizer, the fence sitter and the empire builder. Learn more: https://gag.gl/uQQ201

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Another great snippet from our discussion with Claudia! Hope you enjoy and find it insightful! Much more juicy details covered in the full episode on SecondaryLink website, YouTube and Spotify:) #secondaries #secondarymarket #womeninsecondaries #womenofsecondaries

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PE - Investing in AI Infrastructure KKR inks a $50 Billion strategic partnership to support AI Growth - data centers and power generation: - "Advancements in AI are fueling an unprecedented demand for data centers, but a limited availability of reliable power is impeding the strategic goals of the world’s largest technology companies, enterprises, and governments looking to deploy AI." - "U.S. data center demand is projected to nearly triple by 2030, driving over $1 trillion in investment." - "A single planned data center campus regularly exceeds 1 gigawatt (GW) of power demand and requires an investment of $15 billion or more across data center and power equipment." “Data center power demand is expected to grow by 160% by 20302, a demand that will go unmet without the right infrastructure in place, which is critical to boosting productivity, supporting electrification and helping countries create a competitive edge in AI.” - Joe Bae, Co-CEO, KKR Source: https://lnkd.in/espxbiqt --------- #ai #pe #privateequity

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🔥 Who said you couldn't build an enterprise grade kubernetes platform to go against the big cloud providers, vmware and other startups? Well this amazing team from Spectro Cloud is doing it - huge congratulations on the $75M Series C round led by Goldman Sachs to Tenry Fu, Saad Malik, and Gautam Joshi who have built an amazing product serving some of the largest Fortune 500 customers and government agencies and can deliver apps across cloud, multi-cloud, on-prem, VPCs and edge preparing enterprises for more AI This is massive validation for the leading enterprise Kubernetes platform with >100% ARR growth YoY for 3 yrs as cloud, on-prem + AI use cases 🙏🏼 boldstart ventures is a proud investor since Inception! Thanks to Mark Fernandes - SIERRA Ventures who made the initial intro and congrats to co-investors Gaurav Manglik - WestWave Capital, Ken Fox - Stripes who led the A + B, and finally welcome Michael Reilly from Goldman Sachs The market is still early and I'm 🔥 up for the next leg of this journey 🚀 In comments, check out our why we invested post from over 4 years ago - pretty amazing all that has been accomplished in the face of stiff competition from the Spectro Cloud team!

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Evercore ISI, Research Division Senior MD & Senior Research Analyst Glenn Schorr and I drop the beat on F.R.E.A.M. in the latest Alt Goes Mainstream Going Public show. Hear Glenn discuss F.R.E.A.M. and why fees rule everything around me in alternative asset management, just like Wu-Tang Clan said in the '90s (C.R.E.A.M. - cash rules everything around me). We cover some of the most pressing topics in alternative asset management, including: * How alternative asset managers balance fee generation with returns. * Does major growth still lie ahead for alternative asset managers? * Why “fees rule everything around me,” but so does alpha generation. * Why does distribution (almost always) win in asset management? * What’s the most valuable aspect of a publicly traded alts manager having a public currency? * What is Glenn keeping his eye on for next quarter? https://lnkd.in/e5jagG9U

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the December edition of Private Equity International.    As a past honoree of the Women of Influence in Private Markets list, Anna continues to drive thought leadership in the alternatives space and joins four other trailblazers who have featured on the list over the years to answer the question: “What innovations could help further unlock the private wealth channel over the next five years?” While technology is naturally a key focus, check out the article below for Anna’s full perspective. 👇   #PrivateEquity #WomenInFinance #Leadership

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PE - Insights from "Constellation Software" Shareholder Letters Some of the key investment takeaways Constellation Software (CNSWF - https://buff.ly/3Coo3V8 ) These highlight a strategic focus on long-term growth, disciplined investment practices, and the importance of governance and engagement, all good insights for tech PE: - Disciplined Investment Approach: strict adherence to specific acquisition hurdle rates, reducing risk and underscoring the importance of rigorous investment criteria - Acquisition-Focused Growth: they target 100 acquisitions annually, underscoring an aggressive portfolio expansion strategy attractive for growth-oriented investors - Flexible Capital Structure: exploring various financing options for acquisitions, especially in downturns highlighting proactive financial health management - Long-Term Horizon: emphasis on indefinite investment holds to maximize returns, favoring long-term strategies over short-term gains - Post-Acquisition Reviews: they conduct detailed after action reviews (AARs) post-acquisition to refine investment strategy, a best practice for continuous improvement - Decentralized Decision-Making: Constellation operates with small, autonomous business units (just like portfolio CEOs & execs) to foster agile leadership and decisions (i.e. the PE firm doesn't tell the CEO what to do but works alongside collaboratively) - Behavioral Economics: Constellation incorporates insights from behavioral economics to mitigate cognitive biases, enhancing decision-making rigor Constellation Shareholder Letters: https://buff.ly/4fu29Pc ------------------ #pe #privateequity #tech #ceo #cro #saas #gtm #growth #middlemarket #boardofdirectors #board #revenue #revenuegrowth #investing #investment #finance #business

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Our latest article on the changing landscape of growth-stage business financing is out. As someone who's been watching the space evolve, it's interesting to see how new funding models are influencing the ecosystem. Excited to share insights from our experiences and discuss how these trends might impact future innovations.

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Rethinking Value Creation in Private Equity Having been immersed in the private equity landscape, I've observed a notable shift in how we approach value creation. The traditional levers—revenue growth, margin expansion, and multiple expansion—are now under greater scrutiny than ever before. From 2013 to 2023, nearly half of the value creation in global buyout deals came from multiple expansion, with revenue growth contributing 53%. However, margin expansion accounted for less than 1%. It's clear that we can no longer rely heavily on multiple expansion as a primary driver of enterprise value. Instead, we must shift our focus towards often overlooked areas, particularly margin expansion, and redefine value creation to include equity value and the strategic use of free cash flow for debt reduction throughout the investment cycle. Key Areas to Focus On: -Revenue Growth: In buy-and-build strategies, especially in the lower middle market, there are abundant opportunities for top-line growth. Professionalizing sales forces, optimizing customer acquisition channels, and expanding product/service lines—whether organically or through acquisitions—can also lead to meaningful margin expansion. -Margin Expansion: While cost-cutting is a well-known method, it’s often unsustainable. By focusing on service lines with higher recurring margins and driving synergies through buy-and-build strategies, we can achieve more sustainable margin improvements. -Multiple Expansion: Although its role will be more limited, opportunities still exist, particularly in the lower middle market. Managing cost-basis and pursuing accretive add-ons can still result in multiple expansion, especially when platforms scale and achieve a premium upon exit. -Net Debt Reduction: With the rising cost of debt, free cash flow becomes a critical focus. Setting value objectives that increase FCF allows PORTCOs to pay down debt over the investment's life, enhancing equity returns. Deciding whether to use excess FCF for debt reduction or reinvestment should be guided by a thorough ROI analysis. The future of value creation in private equity is about more than just numbers—it's about making strategic shifts towards margin expansion and prudent financial management to ensure sustainable growth and strong returns in an increasingly competitive market. #PrivateEquity #ValueCreation #InvestmentStrategy #RevenueGrowth #MarginExpansion #MultipleExpansion #NetDebtReduction #BuyAndBuild #LowerMiddleMarket #PE #FinancialManagement #BusinessGrowth #PortfolioManagement

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One of the most exciting questions from this interview was "what key attributes do private equity firms seek in targeting healthcare, biotech, and life science companies for acquisition?". Private equity firms are increasingly attracted to the healthcare, biotech and life sciences industries due to their resilience against economic cycles. Attributes that PE firms prioritize include: Stability and Growth Potential: Companies that demonstrate consistent revenue growth and have a solid track record of performance are highly attractive. The ability to withstand economic downturns and maintain steady growth is a crucial factor. Service and Software Focus: Companies that provide essential services and software solutions within the healthcare ecosystem are less vulnerable to regulatory changes and scrutiny, making them reliable investment targets. Regulatory Compliance and Low Risk: PE firms typically avoid companies with high science risk. Instead, they favor businesses with well-established products, services and technology. Specialization and Expertise: Many PE firms seek companies with specialized knowledge and capabilities that align with their strategic focus areas, ensuring they can add value and drive growth post-acquisition. Thank you to the Los Angeles Times for inviting me to participate in this issue! I am honored to be able to contribute to this piece. If you'd like to discuss any of the insights from this issue, reach out to me directly. #privateequity #lifesciences #healthcareservices #biotech #investmentbanking #businessvaluation

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