Adam Le’s Post

Futbol is Life...well in Venture, Liquidity is Life. If you are following the #venturecapital world right now, one word is on top of everyone's minds #liquidity. From Jason Calacanis and the all-in crew, to PitchBook to #vcfunds everywhere, the lack of Liquidity is massively affecting the venture market. VC funds are having a hard time raising from LP's because prior funds haven't returned capital. Mid-stage (Series A/B) are running out of capital and the late-stage market is hampered by headwinds in both the #IPO market and the FTC's antitrust stance. KKR is right on point for what I think we need. LIQUIDITY via funds to acquire mid-market companies. Personally, I think there is an incredible opportunity for #familyoffices or other investors to stand up similar funds and acquire fantastic companies at "reasonable" valuations. This would both create tremendous potential returns for investors and much needed liquidity to get the flywheel in venture moving smoothly again.

Interested in getting in early on the next big thing? Pre-IPO investing offers the potential for high returns, but also comes with risks. So is it worth it for the average investor? Here we break it down. https://hubs.la/Q02zZ70P0 #privatemarket #privatestock #preIPO #investing

🚀 Exciting News in the World of Private Equity! 🚀 Based on this article, it looks like the optimism for turning the faucet back on for #privateequity fundraising is revived, and lower middle market seems to be what is taking center stage in 2024. (Woohoo for the majority of our clientel!) Here's my recap if you don't want to dig through the article! ✨ Key Insights: *Smaller operators motivated to sell are driving M&A volume in the lower middle-market. (So if you are lower middle-market and looking for a nice liquidity event, this may be your year!) *Larger funds are winning over LPs with brand names and diversified strategies. 📉 Recap of Last Year: *PE fundraising numbers suffered due to high interest rates and geopolitical headwinds. 🔍 Looking Ahead: *Placement agents and advisors anticipate a better year for private equity fundraising as M&A activity recovers, to an extent. 💰 Lower Middle-Market Trends: *Despite "market calamity," lower middle-market firms are still seeing deals and exits as founders of smaller companies are motivated to sell. 💼 Winning Strategies: *Private equity managers operating multibillion-dollar funds are winning mandates with international investors, emphasizing the safety of brand names and well-diversified strategies. The article is cautiously encouraging. :) Who else is excited to see what 2024 holds for the private equity landscape?! #privateequity #MergersAndAcquisitions #MandA #AcquisitionStrategy #DealMaking

Secondaries accelerate the democratization of private equity. Here’s how: With Stableton, we are democratizing access to the most successful pre-IPO companies - Or more concretely, all the Top 20 global tech unicorns in one portfolio. Historically, acquiring shares in a pre-IPO company has not been easy. Investing as part of a capital increase meant building connections with these companies for years and investing tens to hundreds of millions of dollars. ➤ Secondary transactions are the solution to this problem. Put simply, a secondary transaction occurs when an existing shareholder of a company decides to sell to another shareholder. 𝗧𝗵𝗲𝗿𝗲 𝗮𝗿𝗲 𝗺𝗮𝗻𝘆 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝗳𝗼𝗿 𝘀𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝗶𝗲𝘀 ▪ Employees are asset-rich, but cash-poor and can get liquidity from their shares ▪Non-traditional investors such as family offices or banks change course or need liquidity ▪Existing VC funds run out of their fund lifetime ▪VC funds want to distribute cash so they can raise their next fund Meanwhile, the buyer gets exposure to a company and sector of the economy that would otherwise be out of reach. 𝗧𝗵𝗶𝘀 𝗶𝘀 𝘄𝗵𝘆 𝗜 𝗰𝗮𝗹𝗹 𝘀𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝗶𝗲𝘀 𝗮 𝗱𝗲𝗺𝗼𝗰𝗿𝗮𝘁𝗶𝘇𝗶𝗻𝗴 𝗳𝗼𝗿𝗰𝗲 Secondaries allow for better portfolio management:  ➤ Secondaries facilitate rebalancing and risk management by enabling diversification Secondaries allow for better liquidity:  ➤ They create opportunities for new investors to enter established companies and provide liquidity options for existing investors Secondaries allow for better transparency and portfolio valuation:  ➤ The vast amount of secondary market trades bring transparency by providing more data points on valuations. As a result: 𝗦𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝗶𝗲𝘀 𝗮𝗹𝗹𝗼𝘄 𝗳𝗼𝗿 𝗯𝗲𝘁𝘁𝗲𝗿 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀 (such as ours): ➤ Such as passive, low-cost, semi-liquid, or open-ended ➤ Appealing to the wealth channel, direct clients, and institutional investors alike. As such far more investors can participate in private market investments. Here is a recap of what we do at Stableton: We provide easy access to the Top 20 global pre-IPO tech companies through a passive strategy with zero performance fees. And because we manage our portfolio through secondary transactions, our fund can be semi-liquid (with 3x the liquidity of ‘traditional’ semi-liquid funds) something almost unheard of in private market investment. You can learn more in the Stableton Navigator newsletter: https://lnkd.in/eG6ufZtT #secondaries #investing #democratization #marketaccess #preipo

Why the VC secondaries market is booming 🌐 Secondaries in VC are experiencing increased popularity. The surge is driven by VCs seeking liquidity for their LPs amid subdued IPO markets and limited exit opportunities. 😎 Strip sales, involving entire or partial stake sales, are a preferred method to return capital to LPs, offering de-risking benefits. European VCs are actively considering strip sales, debating whether to pursue a full horizontal approach or cherry-pick specific companies. 💸 Continuation funds are an alternative for liquidity, with Germany’s HV Capital being one of the few in Europe to announce such a fund. There is skepticism about the effectiveness of continuation funds in the current market, with challenges in achieving desired valuations. 💹 VCs anticipate valuations to rise in the next two to three years, prompting American buyers to capitalize on current opportunities. Despite the challenges, secondaries firms, including TempoCap, foresee a robust year for both acquisitions and exits. Check out the full piece👇 by Amy Lewin Sifted #vc #funds #secondarymarket #lps #ipo #investements https://lnkd.in/ec58YyYd

Commitments to secondaries continues growing with a buyer’s market with deal flow well in excess of dedicated capital. “LPs commit to secondaries funds because they see that this is a materially undercapitalised market,” says Jan Philipp Schmitz, executive vice-president at Ardian. Blackstone and Lexington Partners, each raised over $20 billion as the industry focuses on buying high-quality assets at compelling discounts.  For 3SPOKE it begs the question, if “high-quality” (i.e. largely buyout) assets is undercapitalized, then what does it look like for venture capital. The biggest factor seems to be investors’ valuation hangover concerns from the 2020/2021 period keeping them on the sidelines. https://lnkd.in/eZnEnFqV

Witness the evolving private equity landscape with the resurgence of SPACs. Discover why PE firms, along with accredited investors, are turning to SPACs for a faster and less costly route to make portfolio companies public. #PrivateEquity #SPAC https://lnkd.in/gVxxTYHa

This deal appears to be getting done: Lexington Partners has stepped up a lead investor on a multi-asset #privateequity CV deal run by Lightspeed involving 10 assets from older funds. UBS is adviser on this deal. The process is out to LPs for their sell/roll decisions. Not a ton is happening in growth and venture secondaries, though Lazard found activity increasing. Around 14% of GP-led market volume in the first half involved growth and venture capital, which was up markedly from the first half last year, according to Lazard’s half-year secondary volume report. That compares to 79% of volume in buyouts GP-led deals, the report said. Get the transaction details here on Buyouts: https://lnkd.in/eBm-Fdjs

📣 Astorg raises a €1.4 billion Continuation Fund - Astorg, a pan-European private equity firm, announces the closing of the Normec Continuation Fund. - Lead investors include CVC Secondary Partners, Pantheon, Lexington Partners, and Eurazeo. - Additional investors include sovereign wealth funds, pension funds, asset managers, and family offices. - The Continuation Fund was created to acquire Normec, previously held in Astorg VII (Fund VII). - The transaction was oversubscribed with commitments from both existing Fund VII and new investors. - Significant equity contributions were made by Normec's leadership team and the Astorg deal team. - The Continuation Fund raised €1.4bn, including additional capital for Normec’s growth and acquisitions. - Normec, founded by CEO Joep Bruins, provides testing, inspection, certification, and compliance services. - Normec employs over 5,000 people across 6 European countries. - Under Astorg’s ownership since 2020, Normec has quadrupled in size through organic growth and 40+ acquisitions. - Normec's international expansion covers 4 verticals, supported by its management team. - Astorg previously raised a €1.3bn continuation fund for IQ-EQ in 2022. - Francois de Mitry, Chief Investment Officer of Astorg, expressed gratitude to partners and excitement for Normec’s future growth. - Joep Bruins, CEO of Normec, highlighted the company’s achievements and the continued partnership with Astorg for further expansion.

The VC secondaries market is booming, with Hamilton Lane leading the charge by launching a record $5 billion fund. This surge in activity signals a shift in the #investment landscape, offering new opportunities for liquidity and growth. Why is this important? Secondary transactions provide a vital avenue for early investors to exit and re-deploy capital, fueling further innovation in the #VC ecosystem.