It is no secret that the current market is extremely competitive, and with valuations showing little to no signs of coming down from their highs, deal originators are having to get increasingly more creative in their sourcing strategies.  In a previous Source post, SPS discussed how firms may consider constructively adjusting their strategy to better drive fund performance in order to stand out in the crowded market, and with the significant amount of dry powder available, resourceful business development has never been more critical.

The 2019 PE Harvest Report

According to this year’s SPS PE Harvest Report, there are more than 5,600 sponsor platforms originally acquired between 2012-2016 that may be ready for a potential exit.  They are held by over 2,460 unique sponsors, and more than 50% of these investments were in the sub $50 MM range.  Furthermore, nearly 900 platforms have already traded from the 2018 Harvest Report, so keeping up with these investments may prove beneficial for deal origination.  Filtering these 5,600+ platforms for relevant deals can help proactively contrive an alternative sourcing strategy.

The Harvest Report provides in-depth data on these investments, including industry and transaction size ranges, and deal-specific locations.  Additionally, the Harvest Report has detailed information on which sponsors currently hold these investments – perhaps directly reaching out to owners could be a unique sourcing strategy.  For advisors and lenders, the Harvest report can provide new sources of deal flow for firms ready for potential exit or recapitalization.  Let SPS and its Harvest Report help you source your next deal, away from the crowds and competition.

For a preview summary of the Harvest Report, click here.

Last week’s deals today

July 29 – August 2, 2019
~168 deals traded

Deal of the week

FFL Partners acquired ALKU LLC, an Andover, MA based company that provides specialized business consulting services to enterprise resource planning, healthcare information technology, life science, and information security sectors.  William Blair served as the sell-side financial advisor, and Latham & Watkins acted as the sell-side legal advisor, with Kirkland serving as buy-side counsel.

Most active subsectors
  • IT: Software & services
  • Industrial: Misc. equipment & products
  • Services: Misc., asset light
  • Financial: Services
Most active cities
  • New York
  • Houston
  • Los Angeles
  • Atlanta
  • District of Columbia

Photo by Erik-Jan Leusink on Unsplash

Comments are closed.