Welcome to our August Newsletter.
In this month’s edition, I will share some deal stats and forecasts for the remainder of 2022. Michelle Mueller will then share compliance updates, and Zaya Bold will do so for banker collaboration. But to start, I would like to share an important firm personnel update.
To all of our success,
GT Securities, Inc.
Michelle Mueller – GT Securities New Chief Compliance Officer
I am excited to announce Michelle Mueller’s promotion to Chief Compliance Officer of GT Securities.
For the past two years, Michelle has served as the Firm’s Compliance Manager. In that time, she has led the charge in continuing to build GT Securities truly as a Best-in-Class technology-driven investment bank and broker-dealer platform.
In her new role, Michelle will continue to regularly interface with the Registered Persons on our platform as to their various compliance, regulatory, and risk mitigation needs and requirements (both regulator and transactional driven), and with the Firm’s industry leading compliance partners, including Investment Care Consulting (outside compliance counsel), AJSH (audit), Global Relay (archiving), My Compliance Office (outside brokerage statement review, OBA / PST Attestations, among others, Box (documentation of diligence), and Salesforce (firm record-keeping).
Through all these complex and mission-critical responsibilities, Michelle maintains a consistent professionalism, attention to detail, and “practical” mindset toward that key combination of robust and comprehensive compliance as is required by the rules and regulations with a commitment to “get it all done” as quickly and efficiently as possible.
Deal Forecasting for the Remainder of 2022
As we cruise toward Labor Day and the four month end-of-year push that traditionally has been a very active one for our market sector, the deal environment continues on its slow but steady improvement from the more stalled conditions of earlier this year.
And for sure, while the various macroeconomic headwinds – interest rates, low business, and consumer confidence, etc. – continue to be real and concerning, we remain on trend for 2022 to be the second best private company financing and M&A market in history.
Try these stats on for size:
In Q2 2022, there were 2,639 M&A deals announced, with a disclosed transaction value of $451 billion, up 2% from the $442 billion of deal value disclosed in Q1. Private companies were the most active acquirer type, accounting for 56% of all announced deals, and Services was the most active sector, with 61% of announced deals (Tagnifi).
Perhaps more importantly, deal appetite remains very healthy. According to a KPMG business leaders survey, nearly 80 percent of respondents say their desire for deals is as strong or stronger than in 2021.
While financing activity is down from the record levels of 2021, Q2 2022 still saw over 7,651 announced, completed deals, representing over $105 billion in financings. This made the quarter the 6th highest record and higher than any quarter in 2018, 2019, or 2020.
And like with M&A, the fundamentals for increased deal activity between now and the end of the year are good. Over 3,600 funds raised money in the past four years, with in aggregate over $1.8 trillion(!) in private equity dry powder needing to be invested (Preqin).
Here at GT Securities, we are seeing similar trend lines. While the number of closed transactions is slightly off the 2021 pace, the number of new mandates is comparable, with July being the best month of the year in terms of new, onboarded deal mandates.
So we are solidly optimistic that the remaining months of 2022 will be favorable both for new client mandates and closed deals. Let’s go get it!
Cybersecurity. The Firm is enhancing our cybersecurity protocols by implementing new software for additional protection of integral data. We highly encourage Registered Persons to employ tools like LastPass for password, data, and identity protection.
Michelle Mueller, Chief Compliance Officer
Research and Deal Execution Support. We are excited to see many of our affiliates working with our research and analytic partner, Evalueserve on research, financial projections, and marketing collateral preparation projects.
Evalueserve’s analyst and associate support team have extensive experience in providing services across the Deal Process: Deal Origination (Pitch Support), Deal Execution (Deal Preparation, Marketing), and general presentation support (Formatting of CIM, Presentations, Pitchbook, etc.). Please reach out to me to learn more and how to get connected with them.
Zaya Bold, Director of Banking Synergies
Happy August to all!