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DEER ISLE: Insights, Flows & Investment Trends

by Dianna Raedle November 14, 2022

Are you or one of your portfolio companies (or potential referrals) waiting for capital market conditions to improve before launching or continuing capital sourcing?

We are hearing that many capital raises have been postponed due to the uncertainty of current capital market conditions. This anecdotal information was recently confirmed by a Wall Stret Journal article that stated that “Mergers, stocks and bond offerings slowed in October to the lowest level in over a decade”1     

Our strong recommendation is to use this time to better prepare rather than “just wait” for better conditions. Deer Isle “Strategic Capital ConsultingTM “ services help companies and funds which are preparing for capital sourcing to ensure that they are “institutional ready” read more.  These services include: Strategic Capital PositioningTM , Strategic Capital ModelingTM, Due Diligence Preparation and Capital Markets Landscaping.  Please contact us at info@deerislegroup.com if you or someone you know would find these services helpful.

Some Insights from Our Network:

Venture Capital – There is still capital for “good deals”:  We are seeing continued interest in/funding for VC deals that have clear investment propositions and sustainable business models.  Example sectors include Healthcare/Biotech, Cybersecurity, ESG/Impact and Fintech.

Capital Provider Interest – Pre-FDA approval drugs that can be scaled for impact. Large European Capital Provider looking for pre-FDA approved drugs that can be launched in the US and scaled in emerging markets such as Africa.

Private Equity – Capital Available but How to Value Deals When Interest Rate Direction Uncertain. Both Capital Providers and Capital Seekers are trying to figure out valuations in this uncertain environment.  Transactions can still get done if the Capital Seeker is willing to bend on valuation.

US Economy – Growing consensus from Capital Providers on Q1 Rates/GDP Outlook:  Capital Providers with whom we interact seem to have a growing consensus that rates should peak in Q1 2023 with a likelihood of a recession.  But recession should be small and by end of Q2 see economic activity rebound and markets be in an upward trajectory.  There do not seem to be signs of severe economic distress unless there is a shock to the US from international events.

1 https://www.wsj.com/articles/raising-money-on-wall-street-hasnt-been-this-hard-in-a-decade-11667730621

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.