We invested in a manufacturing company that consistently missed projections quarter after quarter. Management always had an explanation. The next quarter would be better. The turnaround was just around the corner. We wanted to believe it, so we waited. And we waited some more, hoping for a turnaround. Finally, events outside of our control forced […]
Procrastination and the $20 million write-off. Read Post »
The public markets have been effectively closed for most private equity firms over the past several years, but the issue extends beyond simply waiting for IPO activity to return. That dynamic has contributed to a meaningful slowdown in exits across the industry. A recent Investopedia report noted that private equity IPO exits declined 46% in
The IPO market won’t save Private Equity Read Post »
Private equity underwriting has become materially tighter. A business acquired at 11x–13x EBITDA with 5.5x–6.5x leverage and underwritten to a 20%+ IRR historically had room for moderate operational underperformance if exit multiples expanded or financing remained accommodative. Many funds are dealing with flat or lower exit multiples, elevated borrowing costs, and portfolio company performance below
The Growing Interdependence of Private Equity Return Metrics Read Post »
Rising debt costs are changing the economics of leveraged investing well beyond private equity. As government borrowing absorbs more capital, financing costs across the economy continue to rise, forcing investors to reassess valuation assumptions, refinancing risk, and return expectations. The pressure is increasingly visible across commercial real estate, infrastructure and high growth technology sectors. Higher
Private equity investment in healthcare scaled aggressively over the past decade—500+ deals annually and ~$150B at peak. The model was consistent: consolidation drove pricing power, labor costs were manageable and leverage amplified returns. That model is now under pressure. Historically, PE ownership drove 7%–16% price increases post-acquisition, but insurers and government payors are now pushing
Rebuilding Value in Healthcare Private Equity Read Post »
We invested millions in a company whose power controls division focused on wireless utility meter reading and remote mission-critical control systems. At one point, the investment appeared headed toward a potential write-off: high cash burn, incapable management and unable to gain traction in the market. Following the divestiture of that division to our fund, we
From Potential Write-Off to Strategic Sale in 18 Months Read Post »
Deals underwritten on 20–30% growth and multiple expansion are now facing slower growth, tighter budgets, and lower exit comps. The gap between assumptions and performance is clear. Underperforming assets look the same: Growth isn’t enough anymore. It’s about the quality of growth — repeatability, pricing discipline, and cash conversion. The fix is operational: Product strategy
The SaaS market has reset. Read Post »
We advised a company that was a pioneer in providing media products, lead generation services, and online marketing tools to their client partners. At the time, it was generating $7.3M in revenue but losing $4.6M annually, with negative equity, and a $8M market cap. The business had no clear operating focus, a cost structure completely
A Quick Turnaround Story (60 sec read) Read Post »
The SaaS market has repriced sharply. At the peak, investors paid 15x–25x forward revenue for growth, underwriting future profitability that, in many cases, never materialized. Today, that assumption has broken. Most SaaS assets now trade in the 4x–8x range, with subscale or lower-quality businesses clearing at 2x–5x, if they clear at all. Exit markets are
From Growth to Cash Flow: The Repricing of SaaS Read Post »
Tariffs just hit 14.3% – the highest level since 1939, according to a recent Marketplace analysis. 97% of US importers are small businesses, and they’re getting crushed from multiple angles. Product-based businesses relying on imported materials like fabric, specialty paper, and art supplies are watching costs climb month after month. Some categories have seen wholesale
Tariff Impact on Small Business (With Advisory) Read Post »
