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DEER ISLE: Insights, Flows & Investment Trends

by Dianna Raedle September 26, 2023

Two Fund Managers Talking to Each Other About Buying / Selling Assets (True Story!)

Fund Manager 1: “There are so many assets to buy…I can pretty much buy any assets at a 15%+ IRR

Fund Manager 2: “I hear you / I am seeing the same thing”.  I know that you are trying to sell “y” asset in your portfolio – what kind of a return are you offering on it?

Fund Manager 1: Sell my asset? Would not sell for more than 8% IRR!

This pretty much says it all about the state of the private markets. 

Until this bid/offer closes – private markets are in fragile territory.

We have Launched a New Website – check it out!  www.deerislegroup.com  

We look forward to hearing from you and seeing how we can help:  Prepare, Build Top of Capital Funnel or Close Capital Opportunities.  We can be reached at info@deerislegroup.com for a free assessment of our ability to help.

INSIGHTS, FLOWS, AND INVESTMENT TRENDS  

Capital Provider Interest – We have interest from large multi-family offices for Funds less than $1.5B.  

Funds – Zombie Funds? Bloomberg article focuses on “zombie” funds. Smaller funds can no longer raise capital.   We have been noticing/writing about this trend for many months (here is one article – Institutional Capital Providers are Full) and have adjusted our process to enable funds of all sizes to have a chance of capital raising.  Contact us if you want to know more.  

Venture Capital – Support Your Assumptions: We hear from numerous Venture Firms that they are not getting traction with their capital raise.  When we look at their materials – it becomes clear – why.  Models have been developed with minimal support for the assumptions.  See our article on Supporting Assumptions even with Limited Operations.  

Sponsors/Search Funds – Has this Space Become Overcrowded? Last month we mentioned that we thought this space has become overcrowded and that Business Schools were minting new Sponsor/Search Funds at an unusual rate.  Bloomberg published an article this month noting the phenomena. Capital Providers will have to be more diligent when assessing Sponsor or Search Fund transactions – especially when conducted by untested people and it will become harder to raise capital given a more competitive environment. 

Contact Us:

Deer Isle Group

info@deerislegroup.com

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Founded in 2007, Deer Isle is an innovative investment bank that equips capital market participants with the tools they need for transparent, seamless, and efficient capital markets transaction success.

Since our inception, we have facilitated over $5 billion in capital transactions through Deer Isle Capital, LLC—our FINRA-registered broker-dealer—for companies and funds across various security types, sectors, and geographies.

At the core of our approach are effective, unbundled capital solutions, offering expertise and guidance that can be customized to meet each client’s unique needs. Our services, available on an "as-needed" basis, include:

  • Strategic Capital ConsultingTM (“Outsourced Strategic CFO services, Deer Isle Executive Management/Board Bootcamp or Sprint”) to prepare for a capital or M&A transaction leveraging the Deer Isle proprietary AI enhanced 4 pillar capital framework and real-world experience.
  • Beacon (“Proprietary Technology”) offers White-label and Turnkey Capital Provider engagementwith customized content and data analyticsfrom a relevant subset from a universe of 17,000+ institutional (fiduciary) capital markets organizations/50,000+ institutional capital market people.
  • Closing Advisory/Guidance (including “Shepherding”) expertise, through Deer Isle Capital, for structuring, negotiating, and completing a successful capital/M&A transaction.