Neeta Shah, CFA

One of the most common struggles for aspiring fund managers -- current cash flow. Many fund managers are struggling in the short term to produce cash flow for their business. In a typical structure, fund managers (specifically referring to folks who leverage SPVs to invest into specific deals or funds) -- may earn 1-2% upfront as an acquisition fee and earn the rest of their compensation in a profit sharing split once the preferred return to investors is achieved. Most real estate projects today are either not achieving their preferred return in cash flow or may not achieve this bench mark for the first three, four or even five years -- at this point, there may also be accrued preferred return that would have to be caught up. As a fund manager, what other asset classes are you evaluating to help increase cash flow for both your investors AND yourself? Personally, we are diving deep into buying and operating businesses that potential to conservatively achieve 20%+ cash on cash returns.

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On setting clear goals:🎯 I targeted having one fixed income and looked for a part-time CFO role for 4th Quarter!! And it happened Sept 12 I Get hired! Not Ideal but DREAM client💕 from Israel I got this client from OLJ after a series of tests and interviews. **Tips:** 🎯- Search the company website and understand its vision. 🎯Complete the tasks and meet the submission deadlines. 🎯Provide extra value by sharing some previous work related to e-commerce. ACE the interview🙌🙏🎯 💕I have a bunch of e-commerce files since I launched a course back in 2022. 😎 E-commerce on Amazon is so complex that it requires a solid understanding of COGS, landed costs, inventory, and profitability per product. ( buti na lang puro manufacturing corpo job ko since 2010 ) Today, I’m happy to share that they’re not my boss; we are business partners, hitting our goals for 2025 💕putting warehouse in Miami Florida Jan 2025 💕to have 10,000 SKUs in the next 2 to 5 years 💕lastly going to Palawan 2025 🥳 PS:next post I will share the tips why they hire me, why Filipino, why Amazon and funnys story alam ng client ko un Loom videos ko nasa YT and dami daw comment😁🤣😂😂 alam nya ng coach ako kasi di ko naman yan nabangit ng due diligence daw sya🙈😆 plus ngpapahanap ng Real Estate bookkeeper sa isang friend nya abangan…. how to kickstart you Freelancing : https://lnkd.in/gx-6ZUB5 how to Build an agency sa Sunday: https://lnkd.in/g-j2nrRp lets connect : https://lnkd.in/gfpu_cfs

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It's finally here! The first announcement of our equity investor raise in our operating solar assets 😎 We are so excited to be doing this capital raise with Plural Energy and Zorya Energy Advisors...and all of our friends, family, business partners, personal admirers, savvy financiers, impact investors, and everyone else who is excited about being part of financing the clean energy future 🌞 Go to plural.xyz to get the details on the equity offering!

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What are the alternatives to shadow bookkeeping? Shadow bookkeeping is both costly and inconvenient, yet many firms resort to it to ensure they have reliable fund admin data. Holland Mountain's ATLAS Fund Admin Oversight solution offers Private Capital firms a way to regain control of their data with a continuous data feed from their Fund Admin with automated data reconciliation.   Our solution ensures firms have both control and confidence in the data managed by their fund administrator, eliminating the need for shadow bookkeeping. How does it work? Our solution helps Private Capital firms have: ▶ Real-time access to data held by your fund administrators ▶ Full audit history capabilities ▶ Automated data reconciliation, far beyond a simple data warehouse ▶ Enrich data with additional attributes from other systems ▶ Self-service access to crucial data for all who need it If you want to know more about our solution, visit our website or schedule a demo with our team to see it in action. 👉 https://lnkd.in/e7FtUWuU Harpreet Lakhan | Holland Mountain | PE Stack by Holland Mountain #privateequity #privatemarkets #data

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I will be sharing tips/clues we use at Calder to identify “real” buyers - those most likely to submit an offer. You may find it interesting that ~10% of buyers that inquire, sign NDAs, and are approved actually move forward seriously on a given business opportunity so it’s paramount for our team to spend time with those 10%. The problem is that we don’t know at the outset who they are. So here’s clue #1: “If the buyer’s first question is related to the asking price, they are unlikely to be serious.” #buyingabusiness #mergersandacquisitions #investmentbanking #sellingabusiness

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Private equity companies continue to saying that #talent is the most important factor in driving growth and in particular the #CEO role. A new report from Heidrick & Struggles says that PE firms must learn to assess potential operating company CEO candidates for the future rather than relying largely on past performance to understand potential. Let’s take a closer look >> https://lnkd.in/eviQnVe6 #PrivateEquity

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As PE firms prioritize people in #value creation, they are scaling their talent functions by leaning on operating partners. Drew Seaman, managing director of Hunt Scanlon Ventures, takes a closer look at how #talent and #technology are giving new lift to the role >> https://lnkd.in/eKpK62Ft

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Great Article – Key points: (1) Interest-Rate Cut Impact: PE deal activity, is still facing challenges such as political uncertainties, weakened corporate performance, and a slow fundraising climate. (2) Already Priced In: Dealmakers indicated that the rate cut had already been factored into transactions over the past several months., (3) Value Creation Over the last two years, many PE firms have improved portfolio company performance by reducing costs and streamlining operations, which could result in higher valuations. (4) Deal Volume Growth: Projections suggest that PE deal volume will pick up in Q4 2024, with an estimated 9% year-over-year increase. This momentum is expected to continue into 2025. (5) Stagnant PE Exits: Despite an increase in US PE deal value (up 12% year-over-year in H1 2024 to $325.2 billion), PE exits remained stagnant, a critical issue as exits are essential for capital formation in the industry.

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One year and two months later, Prof. Subbarao Kambhampati’s comments in this article are still worth re-reading amidst all the hype about LLMs marching toward sentient human-like AGI. In some sense, ChatGPT is worse than even naive Google searching since the code simply creates sentences and paragraphs without any regard to reality, truth or veracity, purely based on patterns and correlations between words and phrases … hallucinations are not a bug but a feature. Per Prof. Kambhampati - “… humans sometimes hallucinate and self-correct. All LLMs do is hallucinate … ChatGPT itself is neither lying nor telling the truth, it is simply “afactual.” We may see it as capturing the distribution of plausible realities, rather than the single reality we all inhabit … human memory is itself not veridical — we don’t store and retrieve experiences verbatim but, instead, stitch them on demand (thus leading to false memories and unreliable witnesses). However, unlike humans who can (sometimes) verify their memories against external sources, LLMs focus just on the statistical likelihood of the completion provided. They do not have any model of the world we inhabit beyond this.” #AI #ChatGPT #AGI #Singularity #LLM #Sentience

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The Whole Truth about RIA Transfer Discounts. I've written and spoken and frequently consult about the issue of discounting the value of an RIA firm in internal transactions. I support what I call a "quasi-market" framework for these kinds of transactions. In recent years, most of my consulting work on this topic has been within my association with DeVoe & Co., where I operate as a "Special Advisor" independent contractor. Among many other services, DeVoe is one of the (if not the) foremost providers of valuation services for the RIA community. DeVoe bears no responsibility for the thoughts that I express here regarding internal transaction discounts. Some kind of discount to a third party sale value is almost always involved in the "quasi market" scenarios...as well as in more directly engineered transfers. Discounts of 15% to 30% are common, sometimes even more. I've never been completely satisfied with the rationale for that discount, and many founder/sellers are especially unhappy with it since it reduces their proceeds. The standard rationale for the discount begins with its being conventional: everybody does it; further, there is an appeal to altruism: part of the price the seller must bear to achieve a durably independent ownership legacy. Even more, there are the inescapable notions of illiquidity and lack of control that require some discounting of the price. Still, with more transactions and more owners, these minority and illiquidity rationales become less salient. Thus, the size of the total discount can gradually shrink over time. This is as far as the conversation usually goes. I think there's an even more fundamental economic principle at work: the value purchased is, in part, due to contributions the buyer has already made. The buyer already "owns" a piece of what is now being sold. Thus, the buyer's price should be less so the sellers' proceeds reflect that not all the existing value "belongs" to them. While I don't like tenure as part of the criteria for eligibility to be an owner, it seems right to permit some negotiation between buyers and sellers about the duration as well as the intensity of that pre-existing contribution. Having idiosyncratic discounts among buyers could, of course, present a nightmare scenario; but, in service of justice to all the parties, if the amounts at stake are large enough, it can be worth the effort. Both sellers and buyers must be willing to transact. As a further complication, the sellers' value somehow incorporates the cumulative contributions of all the other owners. Do they have a share in the proceeds as well? And, finally, a brand new employee, being offered ownership at the outset, should enjoy a smaller discount (larger payment required) since there was no prior contribution. The conceptual issues and accounting nightmares compound. But all these considerations come into play in conclusions, individually or across the board and over time, about that 15% to 30% discount range.

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This should be a wake-up call ☎️ for fund managers and C-suites—only 26% of GPs have implemented at least one AI function and only 13% of middle-market companies have embedded AI into their operations. This article goes in-depth on what PE funds and their portfolio companies need to know to start adopting AI. ➡️ https://okt.to/XrJ4qz #AI #ArtificialIntellegence #PrivateEqutiy

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California’s Assembly Bill 3219 which targets private equity groups and hedge funds that directly or indirectly acquire a material amount of, or establish a change in governance or sharing of control over, health care assets, including partnerships and joint ventures, is closer to becoming law following the State Assembly’s May 22, 2024 passage of the pending legislation. The legislation is currently being considered by the California State Senate, where approval must be obtained prior to the end of the legislative session in August if it is to be enacted into law in 2024. The bill defines “health care facility” to include any “nonprofit or for-profit corporation, institution, clinic, place, or building where health-related physician, surgery, or laboratory services are provided,” such as inpatient and outpatient centers, long-term care facilities, and labs. Covered provider groups include all groups of 10 or more licensed health professionals (LHPs) or groups of 2-9 LHPs with $10 million or more in annual revenue. Private equity groups and hedge funds that enter into an otherwise covered transaction with providers consisting of 2-9 LHPs that earn between $4 and $10 million in annual revenue would be required to notify the Attorney General, but the transaction is not subject to approval. The same is true for groups of 2 or more nonphysician LHPs that earn more than $4 million annually. The proposed legislation has serious implications on the use of the contracting structure that many private equity groups utilize to carry out investments while navigating California’s prohibition on the corporate practice of medicine (CPOM) - the “Friendly PC-MSO Model”. This model involves a private equity or lay person-controlled management services organization (MSO) contracting to perform administrative services for a health care practice in return for a management fee, while also having certain rights regarding the ability to designate successor ownership of the practice upon the occurrence of certain triggering events. As currently drafted, the bill could render the Friendly PC-MSO Model unviable or more difficult to employ by prohibiting any physician practice from contracting with any entity controlled “by a private equity group or hedge fund in which that private equity group or hedge fund manages any of the affairs of the physician practice in exchange for a fee.” Disclaimer: This LinkedIn post is for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities. #healthcare #dentistry #privateequity #mergersandacquisitions #law

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In the latest episode of the Behind the Money podcast, Michela Tindera and Sujeet Indap dissect the complexities of M&A deals, shedding light on a recent case where things took an unexpected turn. In this hypothetical scenario turned real-life saga, a seemingly routine acquisition of a grocery store chain by a private equity firm turned into a courtroom battle over a staggering $109 million. What went wrong? How did a deal that appeared straightforward end up in a legal quagmire? For business owners, investors, and industry professionals, this episode offers valuable lessons in navigating the complexities of mergers and acquisitions. #MergersAndAcquisitions #BehindTheMoney #BusinessInsights

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Getting the right investor on board is as important as the metrics of a deal in my view. When you hear of relationships breaking down or private equity having to step in, it's often because the goals of the people involved weren’t set right. Often people appoint advisors and run a private equity process focused on the hard metrics of a deal. They’ll focus on the enterprise value, they’ll focus on the cash returns, and they will run quite hard processes, but at least as important in my mind is the human element. Choosing the right investor isn’t just about the money. The personal chemistry, alignment on business philosophy, management support expectations, and long-term vision all have to be right to ensure the success of a deal. It’s sometimes difficult to know in a short period leading up to a deal who will be that right investor for you, so I encourage people to meet with investors before the actual process. Business is about relationships and its often easier to check if a business relationship with an investor is going to be right if you’ve spent quite a lot of time with them before a deal. Remember, the process can drive the outcome of a deal, but the relationships are often made beforehand. You can watch the full podcast here: https://lnkd.in/eCkecB9e You can listen here: https://lnkd.in/er7JQsD7 #PrivateEquity #Investment #AlvarezAndMarsal #DealMakerUncut

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Understanding the Rise of Interim Executives As seen in Hunt Scanlon Media's recently released 2024 Private Equity Recruiting Report, Kelsey O'Neal, head of the interim corporate officers practice, and Jeff Camarra, executive director, private equity, at Business Talent Group (BTG), share insights on the benefits of #interim executives for private equity firms, key trends in interim executive demand, and best practices to ensure successful engagements. The rising profile of interim executives has become a notable trend across the current business landscape. Business Talent Group’s 2024 High-End Independent Talent Report, based on an analysis of proprietary data on project-based and interim #leadership needs across various industries, revealed a 170% increase in the number of requests for experienced interim executives in the past two years. To read more, and download the full report, please visit: https://lnkd.in/efMupGRk

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What does the lack of an IPO pipeline imply? It means there is more Enterprise Software M&A coming down the pike. It has been a relatively slow M&A market since 2022. The middle market has been cautiously anticipating increased deal flow for at least couple of quarters but it hasn't happened yet. The gap between valuation expectations between sellers and buyers remains a hurdle. Structured deals, disciplined spending, and a shift of focus from growth to operational efficiency has helped companies and their backers bide time but the pressure is clearly building. A shift in interest rates could trigger activity sooner, but my money is on tech M&A ramping up after the US presidential election. A resolution to the multiple Geo-political crises in Ukraine and Israel will certainly help.

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