PROPRIETARY TRANSACTIONS: The Real Edge in Today’s Market
Podcast:
I CAN do a Proprietary Transaction!
In a capital market split between a few overheated auctions and many stalled assets, the winners — both capital providers and companies — start proprietary conversations early and stay visible with steady, professional updates. Counterintuitive but true: even though the process for a proprietary transaction might seem unattainable; doing a proprietary transaction with help when and where you need it can obtain best outcomes.
Why Proprietary Transactions Help Both Sides
In competitive processes, transactions often fail over “soft” issues — growth plans, exit strategies, or employee retention — that don’t show up in valuation models. Proprietary processes allow both parties the time to align on what really defines success and to structure creative outcomes that bridge gaps.
| Capital Providers Seeking Transactions | Companies Seeking Capital or M&A |
| Valuation discipline — avoid auction froth | Confidentiality and flexibility — tailor terms to strategy and timing; fewer eyes on sensitive plans. |
| Aligned partnerships — direct contact with founders, families, sponsors; deeper relationships than crowded processes allow. | Strategic partners — attract capital that brings expertise, networks, and credibility. |
| Creative structuring — earn-outs, rollovers, hybrids easier to design without auction pressure. | Better fit — find capital partners who understand the story, not just the price. |
The Data demonstrates that proprietary transactions work. Proprietary sourcing is where differentiation — and success — happens.
- Summit Partners ($33B AUM): Industry profiles report that 70%+ of Summit’s investments were negotiated directly with founders, and over 80% sourced through proactive, thematic approaches (Altaroc – Summit Partners).
- According to the Sutton Place Strategies report all types of intermediaries only provided between 17 and 57% of transactions meaning more than half of transactions did not come from an intermediary.
Why Many Miss Out
Even though most professionals believe proprietary outcomes are better, many don’t know how to execute them. Auctions are easier to join than building and maintaining long-term proprietary pipelines.
How Deer Isle Helps
Deer Isle has closed over $5 billion in capital transactions. Our model is built around supporting proprietary transactions and is unbundled so we can be effective and support your transaction.
- Institutional preparation — ensuring your opportunity is market-ready.
- Connection and engagement — use Beacon, a fintech solution, for creating visibility and building trust with counterparties.
- Closing expertise — executing transactions while preserving the proprietary edge.
Deer Isle provides leverage where it matters most, so you gain the benefits of proprietary outcomes without losing focus on your core business.
