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Axial Radar: 9% Deal Coverage

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Axial Radar

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Happy Friday and welcome to another edition of Axial Radar!

Comprehensive coverage – it’s what every private equity BD professional strives for. And yet, a recent study revealed that most PE firms only actually see between 15% and 30% of deals relevant to their investment strategy. Make your way down to the lower middle market, and the median deal flow coverage drops to about 9% (if only there were a solution for that ;).

One of the core difficulties behind achieving true comprehensive coverage is a lack of sector specialization. I’ll explain. Many PE firms will cast as wide of a deal sourcing net as possible, in an effort to not miss out on any deals. The catch-22 is that a broad focus often means you don’t have the bandwidth to put down deep roots in one or two specific industries. It’s a jack of all trades, master of none-type situation. Head over to this week’s featured Industry Trends article to read more about how PE firms are starting to leverage data to help identify where they should be focusing their deal sourcing efforts to comprehensively cover more deals in fewer industries.

Our featured buy-side members this week include a NY-based growth equity firm, a 122 year old corporation, and a private investment firm founded by a 20 year industry veteran. On the sell-side we’ll introduce you to a full service M&A advisory firm and an investment bank founded by operators with over 20 years of experience running their own companies.

Click here to follow Axial on LinkedIn and stay up to date on the latest trends in the world of Lower Middle Market deal making.


Axial

Featured Members

Halle Capital Management

Halle Capital Management
Private Equity Firm

Halle Capital Management is a New York-based asset management firm focused on growth equity investments. The firm seeks to partner with strong, like-minded management teams in sectors where they have expertise and can serve as value-add investors. Halle Capital was founded by JP Gutfreund. Prior to founding the firm, JP was Director of Research at Glenview Capital Management.

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Astor Walker

Astor Walker & Co.
M&A Advisory Firm

Astor Walker & Co. is a full service M&A Advisory firm with a global reach, in-depth market insight, and broad execution capabilities. The firm helps their clients achieve superior outcomes by providing thoughtful, caring advice while acting with honor and integrity. Astor Walker’s services include Buy Side Advisory, Sell Side Advisory, Exit Strategy, Debt & Capital, Business Development, and Real Estate.

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Armstrong

Armstrong International, Inc.
Holding Company

Founded in 1900, Armstrong International is a private, fifth-generation family-owned company. Throughout The Great Depression, two world wars, multiple recessions, and much more, Armstrong International has continued to evolve, expand and thrive. Today, the company’s global enterprise has more than 3,000 employees and representatives serving over 100 countries in improving thermal utility performance.

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Destined

Destined
Investment Bank

Destined is a partnership of former business owners and operating executives. The firm’s founders developed the Destined service offering after 20 years of experience building their own companies. The Destined team has a deep understanding of how middle market businesses operate including experience building companies such as Atlas Capital Strategies and Circle Bank.

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EMG

Elizabeth Marie Group
Holding Company

With over 20 years of experience growing companies, Shawn Jones founded Elizabeth Marie Group, which is a trusted partner to business owners who have made the decision to sell their business. Through a people-centric, profit-focused, and purpose-driven approach, the EMG team of experts help owners create a clear path for the future while ensuring they protect the legacy of their business.

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This week from
Middle Market Review

EV Deals hit the Accelerator
Read More

SEC Rule Changes in the Air for Private Equity
Read More

Dealmakers: How This Firm Uses the Silicon Valley Playbook in the LMM
Read More

Fueled by FirePower
​​​​​​Read More

 

Industry Trends

Raising Sector Strategy to the Next Level

Deal Coverage Rate by Fund Strategy:

IBBA

Source: Bain & Company

Get in Touch

Reach out to dani.forman@axial.net to learn more

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