Private Equity's New Path to Off Market Deals Nicholas Donato - - PowerPoint PPT Presentation

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Private Equity's New Path to Off Market Deals Nicholas Donato - - PowerPoint PPT Presentation

Jan 16, 2023 405 likes •604 views

Speakers: Private Equity's New Path to Off Market Deals Nicholas Donato Matthew Gooch Or Skolnik Nadim Malik Our Agenda State of the Market 1 Cracking the Networking Wall 2 New Paths to Deal Flow 3 The Market Intelligence to Help 4

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Speakers:

Private Equity's New Path to Off Market Deals

Matthew Gooch Or Skolnik Nadim Malik Nicholas Donato

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Our Agenda

New Paths to Deal Flow

State of the Market Cracking the Networking Wall The Market Intelligence to Help Technology and Processes 1 2 3 4

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4

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Number of Deals Value of Deals

2019 Was Another Steady Year

Figures are global buyout transactions, including platform and add-on transactions Source: Bain & Company 2020 Global Private Equity Report; Dealogic

Matthew Gooch Berkshire Partners

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Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Dry Powder Continues to Stockpile

Buyout $830bn Other

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Source: Bain & Company 2020 Global Private Equity Report; Preqin

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

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Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

The Winners Kept Winning in Fundraising

AUM of Buyout Firms, by Performance Tier

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Source: Bain & Company 2020 Global Private Equity Report; Preqin

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

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Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Deal Prices Hit New Highs

Average EBITDA purchase price multiple for LBO transactions

USA Europe

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Source: Bain & Company 2020 Global Private Equity Report; S&P Capital IQ

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

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Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

More Than 50% of Deals Were >11X

Average EV/EBITDA purchase price multiple, US buyout deals

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

In 2009: 40% of deals were <7X

Source: Bain & Company 2020 Global Private Equity Report; Refinitiv LPC

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

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Multiples rose across all industry sectors, not just in tech

97%

Same-sector multiple change

Contributing factors to change in EV/EBITDA multiple from 2010 to 2017-18, global buyout deals Technology Industrials Real estate and infrastructure Healthcare Consumer

3%

Change in sector mix

Source: Bain & Company 2020 Global Private Equity Report; CEPRES

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MOIC

Post Post

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Post Post Pre Pre

Median IRR of Realized North America Buyouts Median IRR of Realized North America Buyouts

1.7x 2.3x 1.9x 2.3x

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Source: Bain & Company 2020 Global Private Equity Report; CEPRES

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

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By entry EV / EBITDA

MOIC

By entry EV / EBITDA

Pre-GFC Post-GFC

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Source: Bain & Company 2020 Global Private Equity Report; CEPRES

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

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Speakers:

Private Equity's New Path to Off Market Deals

Matthew Gooch Or Skolnik Nadim Malik Nicholas Donato

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Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

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Speakers:

Private Equity's New Path to Off Market Deals

Matthew Gooch Or Skolnik Nadim Malik Nicholas Donato

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Sector specialists Focused hunting ground investor Differentiated playbook fund Scale manager with broad expertise

Industry breadth Specialized (no more than

  • ne or two sectors)

Focused on specific sub- sectors and themes Can span multiple sectors Involved in most sectors Sector team depth Highest Medium (higher in focus areas) Medium Medium/high Geographical focus Varies Narrow – usually one geography only Varies Global Relative emphasis

  • n value creation

Varies Medium Highest Medium/High Strategy focus / type of deal Many types of deals Deals confined to a carefully defined sweet spot Deals that align with playbook approach Many types of deals Creates focus through… Deep sector and sub-sector focus Repeatable investment strategy applied to defined deal genre Aggressive, standardized value creation approach Scale enabled expertise and depth across multiple sectors

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Finding Your Focus

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

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Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Matthew Gooch Berkshire Partners Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

Speakers:

Or Skolnik Bain & Co. Nadim Malik SPS Nicholas Donato Navatar Matthew Gooch Berkshire Partners

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Speakers:

Private Equity's New Path to Off Market Deals

Matthew Gooch Or Skolnik Nadim Malik Nicholas Donato

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Questions – Get In Touch!

Email: ndonato@navatargroup.com Phone: 212-863-9655 X 3662

Nick Donato Matthew Gooch

Email: mgooch@berkshirepartners.com Phone: 617-316-6143

Or Skolnik Nadim Malik

Email: Or.Skolnik@Bain.com Phone: 646-562-8537 Email: Nmalik@suttonplacestartegies.com Phone: 646-418-2995