2024 Outlook on Private Market Investment Dynamics: Key Takeaways from ACG St. Louis DealSource

Introduction

The recently concluded Association for Corporate Growth (ACG) St. Louis DealSource event shed light on the ever-evolving dynamics of the private market landscape, offering valuable insights into market trends, fundraising challenges, and the overall outlook for the Private Equity and Venture Capital industries. In this blog, we’ll delve into key findings from the event, providing a snapshot of the current state of affairs in the world of private capital markets.

Risk-Aversion

There seemed to be a common theme amongst attendees and speakers recommending the avoidance of risky bets in unconventional industries for your business. The prevailing sentiment was to stick to more established and stable sectors, reflecting a cautious approach to investment.

Exploring New Financial Partnerships 

While there is caution in exploring new industries, the same sentiment does not rain true for industry players seeking new resources to find new deals, and this extends to banking relationships. For example, pursuing new banking relationships is indicative of a broader strategy to diversify and fortify financial partnerships. In fact, founders are now choosing to solicit bankers earlier in the investment process, signaling a more strategic and collaborative partnership approach. 

Fundraising 

As we all know, raising capital continues to be a challenge for fund managers. Investors are scrutinizing opportunities more thoroughly, emphasizing the need for a compelling and well-defined value proposition. And as LPs have been displaying more skepticism and caution in committing capital, fundraising has become a more gradual process with a focus on strategic and steadfast GP-LP relationships. This demonstrates the importance of building trust and establishing credibility, especially for emerging fund managers seeking investment. 

Portfolio Pressures 

Interestingly, most attendees were in agreement that there is no extreme pressure to sell existing assets. In fact, there is a discernible shift in focus towards growing the current portfolio. LPs are encouraging GPs to deploy capital strategically and maximize returns within their existing investment pool.

Conclusion:

Overall, despite the challenges, there is a positive outlook in terms of deal flow. Attendees expressed optimism about the increasing opportunities in the market. The rise in deal flow is seen as a promising sign, indicating potential growth and prosperity in the coming months. This is just further evidence of the underlined dynamic nature of the investment landscape. Adaptability and strategic decision-making are key as industry players navigate challenges in the market. Luckily, Altvia is here to help your firm evolve and stay informed to achieve differentiated success. Talk to one of our experts to learn more about our deal flow software solutions: https://altvia.com/book-a-meeting/

Search
Webinar

Tuesday, February 27th | 1:00PM ET // 10:00AM PT

Join us in our upcoming webinar, “The Power of Unified Data: Creating a Competitive Edge,“ to hear industry experts delve into the significance of data in private capital markets.