Nathan Placks’ Post

PE activity on the rise. After starting the year with PE firms sitting on record amounts of both dry powder, but also record numbers of portfolio companies that were overdue for exit (for which presumably the investor could not get the price they wanted possibly due to the higher interest rate environment), Nathan's post below suggests an interesting trend towards PE type investors shifting towards buying up say cash generative businesses into a group that does not have an imminent exit planned. Whilst I assume that Nathan Placks from Camino is primarily talking about US PE firms, if the US firms are moving in this direction, then presumably UK firms would be as well. In fact I have seen several CFO roles advertised recently that reference UK PE backed businesses looking to adopt a buy and build strategy, rather than buy and exit. In Nathan's post he mentions that: - "There has been a rise in open senior positions. We have never had this many VP/Head of/Director positions live at once." - "PE are talking a lot (loads!!!) about longer-term holds, continuation funds, and evergreen vehicles." - "The PE firms that are looking at longer-term strategies are transitioning focus to slightly smaller TAMs. Less about growth, more about free cashflow." #privateequity #mergersandacquisitions #software Have you seen similar trends from your conversations with private equity investors?

Why Include Financial Buyers When Selling Your Company? Financial buyers, like private equity firms, have a staggering $3 trillion in capital ready to invest. In the past 18 months, the top 10 firms across various size categories have been actively growing their portfolio companies through strategic add-on acquisitions. Here are the top 10 Mid-Size Private Equity Firms for Add-On Investments (Deal Size: $50 - $250 million). 1. Kinderhook Industries (New York, NY) – 27 add-ons 2. Frontenac Company (Chicago, IL) – 26 add-ons 3. NMS Capital (New York, NY) – 21 add-ons 4. Gemspring Capital (Westport, CT) – 17 add-ons 5. RFE Investment Partners (Westport, CT) – 15 add-ons 6. HCI Equity Partners (Washington, DC) – 14 add-ons 7. Align Capital Partners (Dallas, TX) – 13 add-ons 8. Blue Sea Capital (West Palm Beach, FL) – 13 add-ons 9. Levine Leichtman Capital Partners (Beverly Hills, CA) – 13 add-ons 10. Renovus Capital Partners (Wayne, PA) – 12 add-ons 🔑 Key Takeaway: Don't miss the opportunity to attract these prolific investors to your business sale. Schedule a consultation with our experts to discuss strategies for your business, whether it's exit planning or growth: https://hubs.ly/Q02NP9QS0 Full Report: https://hubs.ly/Q02NP9DF0 #middlemarket #economicgrowth #businessperformance #businessowners #privateequity #mergersandacquisitions #sellmybusiness

Catch the latest #SourceTalks with Kirk Fleischer at Investcorp as we dive into the firm’s middle-market investment strategy and the avenues of growth they look for when sourcing opportunities, including organic, through acquisitions, or service agencies. Watch the full interview below! #SourceTalks #PrivateEquity

To gain some perspective on the process and know when to pursue these opportunities, let's examine some of the complexities and common pitfalls of M&As. Read more: https://hubs.li/Q02D9H0n0 Post written by Kristin Naragon, Forbes Councils Member.

🔍 Private Equity's New Era: Operational Excellence Over Financial Engineering With rising interest rates limiting traditional buyout strategies, private equity is shifting focus to operational improvements for value growth. Recent data shows mid-sized deals (£150M–£500M equity) in the US driving significant returns through profit growth, while larger deals face margin erosion. In Europe, however, larger deals are leveraging margin expansion. As PE adapts, the emphasis is clear: sustainable value creation now depends on optimizing portfolio companies' profitability and efficiency. Camino Search are supporting several funds with hiring C-suite Execs and GTM advisors to drive margin expansion and profitable growth initiatives across Europe! #PrivateEquity #OperationalExcellence #ValueCreation #MarginExpansion

Our statement to PE investors: "𝐚 𝐛𝐮𝐲-𝐚𝐧𝐝-𝐛𝐮𝐢𝐥𝐝 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐢𝐬 𝐚𝐬 𝐦𝐮𝐜𝐡 𝐚𝐧 𝐢𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐚𝐬 𝐢𝐭 𝐢𝐬 𝐚𝐧 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲". When analysing past buy-and-build related M&A transactions (we have supported close to 100 PE, VC & corporate M&A deals over the past 5 years), I would say that most buy-and-build strategies fail because investors underestimate the challenges that come with the integration of add-on acquisitions into the platform company. Consequently, investors who only focus on the deal pipeline without considering the operational challenges of the integration are likely to face integration quality and speed as a bottleneck for value creation. Some best practices from our experience: - Manage all integrations via one dedicated integration team - Spend time to prepare the platform company - Set principles to speed up decision making - Stick to one integration plan for all sequential integrations - Coordinate alignment of the investment team and integration team What's your view on this? 𝐏𝐒: 𝐖𝐞'𝐫𝐞 𝐨𝐫𝐠𝐚𝐧𝐢𝐳𝐢𝐧𝐠 𝐚𝐧 𝐌&𝐀 𝐝𝐢𝐧𝐧𝐞𝐫 𝐢𝐧 𝐀𝐦𝐬𝐭𝐞𝐫𝐝𝐚𝐦 𝐧𝐞𝐱𝐭 𝐰𝐞𝐞𝐤 Wednesday (23/10). 𝐋𝐞𝐭 𝐦𝐞 𝐤𝐧𝐨𝐰 𝐢𝐟 𝐲𝐨𝐮'𝐝 𝐥𝐢𝐤𝐞 𝐭𝐨 𝐣𝐨𝐢𝐧, 𝐞𝐱𝐜𝐡𝐚𝐧𝐠𝐞 𝐞𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞𝐬 𝐚𝐧𝐝 𝐦𝐞𝐞𝐭 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮𝐫 𝐩𝐞𝐞𝐫𝐬. #BuildingAMoreResilientFuture #BeyondConsulting

Value Creation The most overused term in #privateequity 2nd or 3rd to strategy But most PE-backed companies only grow because the market grew Want to change this? The Operating Partner model. Adopt it Hire an exceptional Operating Partner (Email me for this [email protected]) Drive value creation Increase exit valuations and multiplers Your competitors are doing it Yes I am seeing big exits, from my clients with operating partners. It works.

Increasing expertise in any given market will increase the likelihood & level of success. Now, if you're investing in the multi-millions, wouldn't you want an experienced set of eyes, from the same industry, to oversee the business? If so, find your Operating Partners with Raw Selection

Over the past 4 years, companies have been making headlines by relocating their headquarters from the Bay Area to other markets. An analysis comparing the market capitalization changes from March 2021 to October 2024 reveals that Bay Area-based publicly-traded companies have significantly outperformed those that have relocated, with a 90% gain for Bay Area companies compared to a 33% increase for those that left. Despite the shifts, Bay Area-based companies have demonstrated strong performance, surpassing both the NASDAQ and Fortune 500 indices during the same period, even after accounting for exits and acquisitions. This highlights the resilience and innovation driving the region's companies. The Bay Area's thriving innovation ecosystem continues to foster cutting-edge products and services, enhancing productivity and creating value that outweighs the challenges of operating in the region. The data underscores the enduring strength and competitive edge of Bay Area companies in today's dynamic business landscape.

𝗖𝗿𝗮𝗰𝗸 𝘁𝗵𝗲 𝗖𝗼𝗱𝗲: 𝟱 𝗶𝗻𝗴𝗿𝗲𝗱𝗶𝗲𝗻𝘁𝘀 𝘁𝗼 𝗯𝗲𝗰𝗼𝗺𝗲 𝗶𝗿𝗿𝗲𝘀𝗶𝘀𝘁𝗶𝗯𝗹𝗲 𝘁𝗼 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗘𝗾𝘂𝗶𝘁𝘆 𝗳𝗶𝗿𝗺𝘀 With the SuperReturn taking place in Berlin this week, I get frequently asked: What makes a company irresistible to private equity firms and what makes a company a highly wanted company that generates multiple acquisition offers? Here are 5 ingredients that set your company apart and position you for high-potential exit opportunities. Jacob Hetzel and Malte von Coburg, what key elements do you prioritize and look at when evaluating a company? #PrivateEquityInsights #InvestmentStrategy #BusinessSuccessFactors #ExitOpportunities #CompanyValuation