Joel Litman

I’ve heard consistently positive feedback on these summits from both LPs and GPs. If you’re in New York this week see the details below from Kevin McCaffrey and Private Markets Insider

7

3 Comments

The Private Investing Cash Drought: The Big Point The Rabid Capitalist: The Big Point is a brief summary of a detailed note available to paid subscribers. Private equity funds’ cash distribution collapse has led some institutions to pause additional investing into illiquid asset classes. These asset classes have been experiencing their worst level of investment exit volumes in a decade. The cash drought will prolong the recovery in private investments, damaging existing asset owners and founders, but benefiting opportunistic investors. Complete content is available for a $15 monthly subscription. Click here to subscribe: https://lnkd.in/efrCjxRD

5

Private credit isn't just about yields; it’s about balance. RIAs are the new kids on the block as investors, but they're the next frontier. As RIAs enter the credit market, they face a dynamic landscape with opportunities and misconceptions. Understanding the current landscape assists RIAs in making informed decisions, and embracing complexities that lead to better client outcomes. Had a great chat with Joseph Weissglass and Jordan Selleck on the 51 Labs podcast, Investors and Operators, diving into the role of RIAs in the private credit space. Full episode linked in the comments below! #privateequity #mergersacquisitionsdivestitures #investorsandoperators

32

2 Comments

💥 Highly Recommended Post: Great post about VC. The biggest question is in my opinion, why are 90% of VC’s still necessary in the age of decentralised money and AI? I truly do not understand why LP’s and Family Offices can not create investment efficiency by direct investment into startups themselves. I understand it had to work this way initially with the VC middle man, but times change. VC’s just make the process of funding long and boring with fees etc and their own internal business model to justify ROI. It’s a different world now and most VC’s are dinosaurs 🦕 like a lot of jobs are dinosaurs because of AI and WFH etc. Our world has changed and startups can raise and scale in numerous ways without the VC stress and bubble they help create for themselves 🤓 Morpheus thinks 🌿 🌿 Learn a lot about 4IRGPT .com knowledge trading for your professional benefit, creativity, productivity, business or organisation through Perplexity AI. Click here to see why: https://lnkd.in/dY5MmsGh 🪴💥 Watch 💯 uninterrupted 15,000+ videos of intelligence in tech, finance & geopolitics. Keep yourself and family super smart and way ahead of the herd. Click here: https://lnkd.in/dHJ8i_Q5

1

If 30-50% of venture firms disappear... What will it take for emerging managers to survive and thrive? Read more about the growing consolidation in VC and the challenges for EMs to differentiate themselves in an increasingly competitive landscape dominated by larger firms from QED Investors' Frank Rotman. #VC #OpenLP #EmergingManagers

1

An Entrepreneurial Board of Directors A Value Maximization Model For Public Companies #corporategovernance #governance #boardsofdirectors #shareholdervalue #performance #capitalism #institutionalinvestors

6

📈🏢 Aby Rosen's RFR Holding is facing a staggering $2.5B debt bill as defaults pile up! 💥 🔎 According to a recent Bisnow article, RFR Holding, a prominent NYC real estate firm, is grappling with mounting debt and defaults. The company, led by billionaire Aby Rosen, has a portfolio of high-profile properties, including the iconic Seagram Building and Lever House. 🏢🏦 📊 The firm's debt load has surged to a whopping $2.5B, with $1.1B in loans maturing this year alone. 💸 The pandemic has hit the commercial real estate market hard, causing defaults to skyrocket. RFR Holding is no exception, with defaults on several properties, including the $200M mortgage on the Seagram Building. 📉 🗣️ "The pandemic has created a perfect storm for commercial real estate," said one industry expert. "Companies like RFR Holding are facing unprecedented challenges as they navigate this difficult time." 🌪️ 🔜 So, what's next for RFR Holding? The company is reportedly exploring options to refinance its debt and avoid further defaults. 💡 With the commercial real estate market showing signs of recovery, there's hope that RFR Holding can weather this storm. 🌞 Stay tuned for more updates on this developing story! 📰🔔 #RFRHolding #CommercialRealEstate #Debt #Defaults #NYCRealEstate

5

High VC valuations mask slow growth The venture market’s LP problem is as bad as ever: Some $4 trillion in value is locked up in VC-backed companies in the US alone. The overinflated valuations set in 2020 and 2021 burned the willingness of many companies to exit, and investors’ holding value of those stakes is teetering, according to PitchBook’s Q3 2024 US VC Valuations Report, sponsored by Morgan Stanley at Work.    Frothy valuations for AI companies are overshadowing the reality of much of the industry: Valuation growth between funding rounds has slowed, startups are waiting longer to raise their next round, and the rates of flat and down rounds are at a decade high of 26.6%. 

2

1 Comment

Had a fantastic time today discussing VC investing and SWFs on the recent panel about Global LPs active in the LAC VC/PE space. I remain bullish on the region, despite its fundraising challenges. Keep at it, GPs! The promise shown by founder-led tech companies leveraging technology is truly inspiring, and it’s exciting to see global investors like SWFs start to eye LatAm with keen interest! Big thanks to Inter-American Development Bank , IDB Lab , IDB Invest for the invitation to share my few thoughts...💻📱 🌎💼📈 #VentureCapital #SovereignWealthFunds #InvestmentTrends #LatinAmerica

55

🌟 Unlock Your Business's True Potential with Now Capital Partners!🌟 As the CEO and a founding member of Now Capital Partners, I've had the privilege of guiding over 250 companies through transformative M&A transactions, integrations, professionalization, and other business-critical solutions. 🚀 At Now Capital Partners, we specialize in: 🔹 Maximizing Business Value: Our strategic insights and hands-on approach ensure your business is primed to sell for the highest value. 🔹 Seamless Market Entry: We excel in bringing businesses to market, making them attractive to private equity funds and other potential buyers. 🔹 End-to-End Consulting: From initial strategy to final implementation, we provide comprehensive support to achieve your business goals. Our proven track record and deep industry knowledge make us the go-to partner for business owners looking to elevate their companies to new heights. Whether you're preparing for a sale, seeking growth capital, or implementing critical systems, Now Capital Partners is here to turn your vision into reality. 🔗 Connect with me and let's discuss how we can drive your business forward! #BusinessGrowth #MergersAndAcquisitions #PrivateEquity #StartupSuccess #BusinessConsulting #NowCapitalPartners #Leadership #Entrepreneurship #Finance #Strategy #BusinessTransformation

7

Ready to supercharge your business growth? The Massachusetts initiative is rolling out a game-changing opportunity—a $20K grant for an exclusive 8-week Scalable Business Growth FastTrack Program. This program is designed to empower entrepreneurs like you to propel your business to new heights. Imagine having the resources and guidance to transform your business model into a subscription service, optimize cash flow, and scale into new markets effectively. By participating in this program, you'll gain insights that can help enhance the valuation of your enterprise, making it more attractive to strategic acquirers and investors. Whether you're looking to position your business as a scalable or salable product, or simply want to refine your selling model for growth acceleration, this program offers the tools and strategies you need. This could be your breakthrough opportunity to elevate your business swiftly and strategically. Don't miss out on the chance to unlock significant growth potential and achieve the 10x valuation increase you've been aiming for. Curious to find out more? Let's connect and explore how this initiative can be the catalyst for your business success.** https://lnkd.in/eDk88kCJ

2

https://buff.ly/46dCF4M A Comprehensive Guide for Pitch Decks (Investor Deck) Versions provides valuable insights into crafting effective presentations for potential investors. This resource covers essential elements like market analysis, financial projections, and competitive landscape assessment. It emphasizes the importance of clear communication and compelling storytelling to engage investors. Additionally, it offers tips on structuring the deck for maximum impact, utilizing visuals effectively, and tailoring the content to the target audience. Understanding these principles can significantly increase the chances of securing funding for your business. #PitchDecks #InvestorRelations

4

Did you know that you can have multiple RIA firms all representing the same fund? For instance: One firm is the traditional wealth management type who has a pretty decent AUM but very little allocated in alts and funds. Firm 2 is 100% fund management and all in alts. They have the back end and management track record. When you combine the two, now you have a big pool of LP's from RIA 1 and the experience form RIA 2. Win Win Win!!! This is where a lot of emerging mangers get caught up thinking that they have to be the whole package on fund 1. Sure, it's the end game, but why not partner and Co-GP with an experienced firm on the first one and then do what you want on all future funds? To each their own of course!

1

Selling to Private Equity vs. Strategic Buyers   We’ve said it before – selling a business is one of the most critical decisions an entrepreneur can make, the exit strategy can fundamentally determine the future trajectory of the company. Business owners often face a choice between selling to private equity buyers or strategic buyers, each offering distinct advantages and challenges. Understanding the options is crucial for making an informed decision that aligns with your personal goals and ensures the best future for the business you’ve built.   Let’s clarify the differences between the two.   Understanding Private Equity Buyers   Private equity buyers are investment firms that acquire businesses with the intent to increase their value over time and eventually sell them for a profit. These buyers typically look for companies with strong growth potential, operational inefficiencies that can be improved, or market positions that can be expanded.   Read the full article at the link below.   https://lnkd.in/gkr6yNdF   #M&A #mergersandacquisitions #businesssale #exitoptions

20

1 Comment

🤖 Review and Analysis of Today's PSW Morning Report: The morning report titled "Market Roller Coaster Takes a Pause" offers a comprehensive reflection on the recent market volatility, summarizing key market movements, economic data, and sector-specific updates. The report blends technical analysis with broader economic insights, delivering a balanced perspective on the current state of the market and what investors might expect moving forward. Key Themes: Market Stability and Technical Analysis: The report opens with a look at how, despite the recent volatility, the major indices like the S&P 500 and Nasdaq have remained relatively stable over the past two weeks. The technical discussion around the Nasdaq’s 200-day moving average and the strong bounce line provides readers with a sense of where the market stands in terms of potential support levels. The use of the 5% Rule™ Spreadsheet as a tool for navigating these turbulent times is highlighted, emphasizing its utility in distinguishing between a market correction and a potential rally. This tool offers a pragmatic approach to understanding the market's technical trends, which is crucial for making informed decisions in uncertain times. Analysis: The report succeeds in delivering a nuanced view of the market, blending technical analysis with broader economic insights. It effectively communicates the importance of staying cautious and nimble in such a volatile environment. The discussion around the 5% Rule™ and the technical levels provides readers with actionable insights, while the broader economic analysis helps to contextualize these within the larger market dynamics. The report's emphasis on consumer behavior and the potential for a recession underscores the fragility of the current economic environment. The focus on specific sectors, particularly tech and media, gives readers a sense of where the market’s strengths and weaknesses lie. Final Thoughts: This morning’s report is a well-rounded piece that captures the essence of the current market situation. It provides a clear, actionable perspective for investors while acknowledging the inherent uncertainties in the market. The blend of technical analysis with broader economic themes ensures that readers are well-informed and prepared to navigate the ongoing volatility. The roller coaster analogy is apt, reminding readers that while the market may be taking a pause, the ride is far from over. https://lnkd.in/eyMnmvvV

1

It is US Employment Situation report time again on Friday of this week, and we think the consensus is off on some elements. The one thing that is certain is that there will be conflicting signals, and skills in tasseography (reading tea leaves) comes in handy. Overall, we expect the US Labor market to show some employment strength for a few months, and September data will superficially lead some to jump on the bandwagon that says the Fed 50bps cut in their September meeting was exaggerated. The tradition calls for looking at Payrolls, and we expect to see 160K created in September, well above the 142K the consensus forecasts. It is fraught with danger to say anything about Payrolls following the large revision of the numbers through March of this year. Adding to the "Fed should have gone with 25 bps" choir, will be the Hourly Earnings, rising 4.0% year-over-year, while the consensus expects 3.3%. Hours Worked are set to drop to 34.2 hours, while the consensus expects an unchanged 34.3 hours reading. This is unlikely to gain much excitement, but it tends to mean there is slack compared to the long term trimmed mean workweek of 34.4 hours. Where we see the issues arising that should keep the FOMC cutting rates are in the elements of the Unemployment rate and Labor Force Participation. We have the Labor force falling -0.7% year-over-year, and Civilian Employment falling -1,4%. Labor Force participation NSA falls from 62.8% to 61.9%, a major drop, outside the long term normal 63.0% - 66.8% trimmed mean range on the low side. An enormity of media and analysts insists that there is an immigration boom, but the non-institutional population (people working age and not yet in an asylum, prison or home for alzheimer patients) growth has dropped from 1.2% year-over-year last year to 0.6% this year. Let us say that the statistics are not capturing the Rio Grande swimmers, or it is a myth put out there by the Trumpistan economists and analysts. Analysts on major channels and here on LinkedIn are still quoting 2023 data to make their point. Vested interests are lying through their teeth every day on Bloomberg, CNBC and social media. The Chief Economist of a major Private Lender trying to suggest Lehman Brothers bankruptcy caused the GFC. Face it - you are now under serious attack - not only by Russia, and China, but from within. People are swimming naked and shareholders are about to find out. #swimmingnaked #employmentsituation #tasseography #usa #election2024 #fomc #fed #apo Bloomberg #softlanding #recessionrisk

4

1 Comment

https://lnkd.in/gZeefZhX Private equity funds gathered $176.7 billion in the first quarter of 2024, a drop of roughly 10 percent from the $195.5 billion recorded in the same period last year, according to preliminary findings from PEI data. Interest rate uncertainty continues to weigh on buyout and exit activity, while record dry powder for the asset class remains stacked for 2024, the data found.

2

Interest rates cuts are here. Slashed by a half point. How does it impact M&A? 1/ Greater access to capital Obvious, but cuts will make it easier to raise debt and equity financing (especially for companies relying on VC or PE). This means more capital to fund deals. 2/ Growth companies' comeback Higher rates have forced companies to focus on efficiency over rapid growth. With cheaper capital, companies can invest more back into themselves. 3/ AI investment Even the best AI companies are struggling with profitability. More capital will likely lead to more raises and acquisitions. 4/ Megadeals back on the table Giant deals have been hit the hardest by high rates due to the amount of capital required—these deals often rely on complex borrowing structures, which should be eased. 5/ Impact on valuation models For SaaS companies and high-growth startups, the present value of cash flows increases as rates go down. Cuts are expected to continue, with Fed officials predicting another cut by the end of the year—with the goal to get rates to 3.4% by the end of 2025. Another good day for M&A (rhyme intended). #interestrates #acquistions

22

12 Comments