Market Liquidity – Large capital resources available once Fed stops hiking interest rates: We have seen internal surveys done by large wealth advisors which show that cash balances/equivalents are approx. 40% of portfolio allocations which compares with approx. 40% equity allocations and 20% other (including fixed income). This capital is sitting on the sidelines waiting for the Fed to signal rate hikes are over before it will be put to work.
Capital Provider Interest – We have demand for complex Private Credit Opportunities that provide a Capital Provider yield between 12 and 15+%. The demand includes asset backed as well as receivable backed transactions.
Venture Capital – Valuations remain uncertain, but demand exists for “risk reduced” sectors. Most Venture Capital Providers are reserving capital to help existing investments weather the storms but firms with 5 million+ revenues withing certain sectors such as Cybersecurity, Climate Change and Energy Security are seeing interest.
US Economy – Growing consensus from Capital Providers on Q1 Rates/GDP Outlook: As per our Insights from last month where we stated that we were seeing growing consensus for Q1 to be a “soft landing”, the Wall Street Journal is now writing that “Investors Grow More Confident Fed will Pull Off a Soft Landing”1 in Q1 2023.
1 https://www.wsj.com/articles/investors-grow-more-confident-fed-will-pull-off-a-soft-landing-11670704543
Contact Us:
Deer Isle Group
info@deerislegroup.com
Capital Transaction Success — Expert-Led, AI & Data Enhanced, Results-Driven
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.
