Earlier this month, SPS released the results of the 8th annual Deal Origination Benchmark Report (DOBR) for its clients. For deal sourcing professionals, the DOBR is a critical benchmark for self-evaluation of strategies and tactics employed. Think of the DOBR as a bellwether indicating where overall deal origination stands as of LTM June 2018, and where it may be headed over the next twelve months.

Earlier this month, SPS released the results of the 8th annual Deal Origination Benchmark Report (DOBR) for its clients. For deal sourcing professionals, the DOBR is a critical benchmark for self-evaluation of strategies and tactics employed. Think of the DOBR as a bellwether indicating where overall deal origination stands as of LTM June 2018, and where it may be headed over the next twelve months.

The construction of the 2018 SPS DOBR included 138 qualified private equity investors in the analysis. To note, 109 of those equity investment firms were recurring from the prior year, with the remaining 29 being first-time contributors. For the twelve-month ended June 2018, the median market coverage of relevant deals for these firms was 17.1%. This is trending upwards, as compared to 16.6% for the 2017 DOBR a year earlier.

The DOBR is the only objective standardized metric available for those investors eager to evaluate deal origination performance in the context of their own progress, as well as relative to their peers. It is paramount to a fund’s performance to audit and evaluate its deal sourcing capabilities. The DOBR illuminates the private equity deal sourcing process, one of the vital components to a firm’s overall success and among the top areas of diligence on the part of LPs.

We recognize the potential for overly complicating the data. Yet, let’s remember that anything mission critical in life is measured and scrutinized to determine possible improvements, or maintain a competitive edge. The role of private equity deal origination has significantly evolved to the point where such analysis is necessary, and the DOBR is here to guide your firm in determining prudent next steps in the deal sourcing process.

To learn more about this year’s analysis, read the results published this week in PE Hub.

 

Last week’s deals today

October 1 – October 5, 2018

~186 deals

 

Deal of the week

State Street Corporation completed its acquisition of the Burlington, MA based Charles River Systems, Inc. (dba Charles River Development). The target is a front and back office IMS solution. Goldman Sachs acted as the sell-side financial advisor for this transaction

 

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