Oil: Oil prices continue to surge toward $150+/barrel, the level we highlighted in last month Insights.
Chinese Interest Rates: While rates in the rest of the world are rising, Chinese interest rates are falling. In fact, Chinese 10-year bond yields are trading near pandemic all-time lows. Is the Chinese economy weaker than the market expects? And could this weakness spill over into the OECD countries? With rates hovering around 2.75%, if we see a break below 2.5%, watch out!
Crypto Markets are seeing outflows from liquid instruments (i.e., ETFs) and into wallets. A bullish sign that crypto is being stored rather than sold (i.e., holders are not signaling that they need liquidity).
Real Estate/Hotels: Can currently buy good branded midsized hotels with 200/300 rooms in stabilized (midsized urban centers) at 10 cap rate given COVID impact, whereas long term average is closer to 8. Also have the opportunity for increasing NOI as travel returns to normal. For comparison, Multi-family is 3 to 5 cap rates.
Reps & Warranties Insurance: While it is widely known that R&W insurance is gaining adoption in lower middle market deals, one lesser-mentioned implication is that diligence expense and time may increase due to the presence of R&W – e.g., a recent deal found that capital providers were satisfied with a sell side quality of earnings, but the R&W carrier was not.
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Deer Isle Group
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Deer Isle Group is transforming capital transactions by combining cutting-edge fintech with deep investment banking expertise. Since 2007, we've closed over $5 billion in transactions for our clients through our FINRA-registered broker-dealer, Deer Isle Capital, LLC.
Unlike traditional investment banks, we offer unbundled, on-demand capital solutions, giving clients the flexibility to leverage our expertise exactly when and how they need it.
AI-Enhanced Capital Solutions:
- Strategic Capital Consulting™: AI-powered strategy and expert guidance to optimize preparation for capital and M&A transactions from outsourced CFO to bespoke services.
- Beacon: Smart capital engagement using AI, data analytics, and targeted connections to a relevant subset from 17,000+ institutional capital providers (50,000+ decision makers).
- Closing Advisory: Expert structuring, negotiation, and execution for seamless transaction closing through Deer Isle Capital, a traditional investment bank which includes M&A as well as capital placement services.
Why Deer Isle?
- Precision Over Guesswork – AI-driven, data-backed capital engagement for better outcomes.
- Unbundled Flexibility – Pay only for the services you need — no rigid retainers, no wasted time.
- Technology + Expertise – AI insights plus hands-on execution for smarter, faster closed transactions.
Whether you're raising capital or seeking high-quality investment opportunities, Deer Isle delivers the next generation of capital solutions.
