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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 a differentiated investment bank that empowers Capital Participants with the right tools to ensure transparent, smooth, and efficient direct capital markets outreach. Since our founding, we have successfully transacted over $5 billion in capital, through Deer Isle Capital, LLC (our FINRA registered broker/dealer), for companies and funds in a wide variety of security types, sectors, and geographies.  

The foundation of our approach is innovative unbundled capital capabilities, expertise, and guidance that are customizable depending upon our client’s requirements.  

Our services, available on an “as needed” basis include:

Strategic Capital ConsultingTM (“Deer Isle Bootcamp”) to prepare for a capital or M&A transaction including Strategic Capital PositioningTM, Strategic Capital Modeling, Due Diligence Preparation and Capital Markets Landscaping.

Beacon (“Proprietary Technology”) offers “Direct Issuance/Contact” capabilities, as well as Capital Markets Brand Building, which helps ensure capital markets success today and in the future from a relevant universe of 10,000+ institutional (fiduciary) capital markets organizations/45,000+ institutional capital markets people. 

Closing Advisory/Guidance (including “Shepherding”) expertise, through Deer Isle Capital, for structuring, negotiating, and completing a successful capital/M&A transaction.