Welcome to our April Newsletter.
Below find some observations and data points on Q1 activity on the GT Securities platform, and then Q2 prognosis, both platform specific and for the deal environment as a whole.
Then, Michelle Mueller will share compliance updates and Zaya Bold will do so for banker collaboration.
To all of our success,
Jay Turo
Managing Director
GT Securities, Inc.
Q1 Commentary / Q2 Prognosis
Q1 2022 deal activity got off to a slow January and February start, but then picked up markedly in March, driving overall platform activity to be in line with Q1 2021.
For Q1, a total of 59 new client mandates were on-boarded, and 15 transactions, with an aggregate deal volume of approximately $140 million, were completed.
Financings (primary and secondary) accounted for approximately 65% of all client mandates, with M&A advisory (buyside and sellside) the majority of the rest. As has been typical for the past few years, while financing activity volume was greater, M&A deal and fee amounts, along with their probability of closing, remained significantly higher.
Of particular interest for Q2 banker business development planning, buyside financing and M&A work continues to grow as an overall share of platform volume.
This I believe is both a commentary as to our bankers finding profitable business niches, and reflective of the massive increase in the sheer number of family offices, PE and VC firms globally seeking “all the help they can get” in sourcing good U.S. companies in which to invest and buy.
This segues to my main Q2 prognosis – that 2021 bullishness is starting to return, and that no matter what macroeconomic or geopolitics shocks might hit us in Q2, the private equity asset class as a whole will continue to grow and be seen as a solid hedge against public market exposure.
One particular area to keep an eye on is deal pricing – in spite of the pullback in public equity pricing (down approximately 9% in Q1) – PE has not seen a similar downtick. Bankers on the platform have advised that this led to some deals getting stuck in Q1, but that in Q2 the bet here is that investors and acquirers (whether they like it or not!) will accept that they will have to pay a little more thereby “unsticking” the market.
So while the future of course always remains uncertain, market conditions are trending in the right direction so in Q2 let’s all make the most of it!
Compliance Updates
Foreign Regulatory Guide. Refer to this guide for a comprehensive summary of regulations surrounding multiple foreign jurisdictions and their registration requirements.
Common cybersecurity threats. Learn more about current cybersecurity threats here.
– Michelle Mueller, Compliance Manager
Collaboration Updates
Collaboration Deals. We receive many deal opportunities from our affiliate bankers and external partners and upon assessing them, we are happy to share select deals with our affiliate network.
Website Profile. Whether you utilize your own branding and website or those of GT Securities, we offer all our bankers the opportunity to have your profile up on the Banker page on our website to benefit from the broader brand and platform reach. Please reach out to me if you are interested in this service.
Referrals. Do you know an investment banker looking for the benefits of independence and professionalism provided on the GT Securities platform? We are always interested in speaking to highly ethical and credentialed banking professionals to join our platform, and starting in 2022 we are offering credits and bonus for referred bankers. Please reach out to me at [email protected] to learn more.
– Zaya Bold, Director of Banking Synergies
Happy April to All!
