Source Talks ep. 39

On this episode, Mark Gartner of RLH Equity Partners talks about RLH’s people-focused investment strategy and research-driven sourcing mechanism.

Secondary Buyers Emerge as Big Contender for Deals

With deal flow scarce, the last thing PE firms need is a new, aggressive competitor for transactions. But that is what they’re getting from secondary buyers. First consider where deals are coming from these days. By seller type, private equity firm themselves accounted for 24 percent of platform acquisitions last year, coming in second place behind private companies, according to data gathered by SPS by Bain & Co.

SPS 2022 Intermediary Breakdown

Not all advisors are equal. If Pareto has anything to say about it, somewhere around 20% of your relationships are driving 80% of your deal flow. PE firms know that sourcing the maximum number of great deals is a delicate function of allocating finite business development resources to prioritize the right relationships – and firms leveraging deal sourcing analytics and historical pipeline data know how to find out who those are efficiently.

To Infinity and Beyond – Recent SPS Product Enhancement

Here at SPS, perpetual improvement is the status quo. Our Product team works year-round to develop new tools, increase data granularity, and streamline workflows for our clients via the most intuitive and intelligent deal sourcing analytics platform on the market.