Source Talks ep. 46
In this episode, we speak with Jay Desai, Partner at Kainos Capital about the firm’s strategic focus within the Consumer sector. Jay also touches on how the firm’s tech stack guides them in creating meaningful relationships, differentiating Kainos Capital within their investment segment.
The Latest SPS Client Testimonials
Belle Verhulst here, Marketing Manager over at SPS. As I’m coming up on my 2.5-year mark with SPS, I thought I’d pull back the curtain to extend a sincere thanks to our clients, and anyone else who appreciates the insights we share. Our team is chock full of diligent, curious people working across every functional area to deliver a quality product. We are grounded in our shared purpose to continuously refine a product that in essence, makes others’ professional lives better. We listen to our clients, implementing any and all product features we believe will benefit them. We ideate, iterate, and sometimes (respectfully) debate about what those could be. Our shared value for perpetual improvement makes SPS a truly inspiring place to work, and we’re immensely grateful to our clients who afford us that opportunity.
How is Deal Activity Trending into 2024?
It’s widely expected that 2023 will weigh in as a relatively weak year for deal volume. Since peaking in Q4 2021, deal activity has gradually declined, taking a significant downturn over the course of 2023. We’re breaking down some of the key deal volume trends that have contributed to this slowdown – and may affect deal activity into 2024.
Q3 2023 Mezzanine Market Perspective
In Q2 2023 91 deals including mezzanine debt closed, a 20% decrease from the 113 mezzanine deals closed in Q1 2023. 1H mezzanine activity increased approximately 21% YoY from 168 deals in 2022, to 204 deals in 2023. Despite the increase in mezzanine deal activity, private equity deal volume for the same time period decreased 18% from 2,950 deals in 2022, to 2,412 deals in 2023. Out of the 91 mezzanine deals that closed in Q2 2023, 38 deals were buyouts, 27 were minority financings, and 26 were sponsor-backed add-ons. The most common industries in total M&A activity for the quarter were Technology, Industrials, Consumer, and Healthcare, respectively.
