Art and Science of Dealmaking

The Art & Science of Private Equity Deal Making

www.privcap.com

Based off Privcap’s Exclusive Brie7ing

In this slideshow:

•  Tips on Collaborative Investing •  Making a Group Decision •  Sticking to What You Know is Key •  How to Properly Formulate a Thesis

Collaborative investing works best when everyone has a voice

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“It’s important that every person around the table is going to be investing equally and participating equally, whether it’s their deal or not.”

-‐Douglas Londal, New Mountain Capital

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The decision process should trump individual ego


“The level of openness, the level of collaboration and the decision-‐making process are much different today. It’s really essential to be able to effectively pick that right opportunity and how you’re going to deploy capital in today’s market, which is changing and is much more competitive than it’s ever been.”

-‐Daniel Galante, Grant Thornton







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Dive deep and stay vertical


The most successful private equity investors do extensive research into industry sub-‐sectors before they even begin looking for deals. They build a thesis and only then start the search for companies that embody it.







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Forming a thesis -‐ and 7inding a deal that matches the thesis -‐ are two different things


Armed with a thesis, private equity 7irms must be proactive in searching for opportunities, and not wait for opportunities to be shopped to them.

Huntsman Gay’s “dedicated in-‐house group of professionals—we call them transaction origination professionals—that are, in many ways, reverse sponsor coverage folks within our organization, who spend an inordinate amount of time with the bulgebracket investment banks, the boutiques, and in many cases, at most of the trade shows.”

-‐Richard Lawson, Huntsman Gay Global Capital







http://www.privcap.com/premeditated-deal-flow/

Your thesis needs to change with the facts on the ground


It is possible, even normal, to form a directional view of the world and, just as your 7irm is ready to pull the trigger on a seemingly attractive deal, to learn that the world has changed, or that a trend has emerged that changes either your thesis or the attractiveness of the speci7ic investment available.







http://www.privcap.com/premeditated-deal-flow/

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Art and Science of Dealmaking

Economy & Finance

Transcript of Art and Science of Dealmaking