Welcome to our September Newsletter.
Below you will find some private market capital stats and forecasts, Michelle Mueller will then share compliance updates, Zaya Bold will do so for banker collaboration.
To all of our success,
GT Securities, Inc.
“It was the best of times, it was the worst of times…it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair…”
– Charles Dickens, The Tale of Two Cities, 1859
Right there is about as good a description of 2022 private market conditions as one is going to find!
On the “worst of times” ledger for sure remain weak consumer and business confidence, higher and rising interest rates, and major stock market indices plunging again after a brief June – July rally.
But…heavily on the “best of times” ledger is that true elixir of the private market deal gods for as long as records have been kept: Dry Powder.
And right now there is more of it than at any time in history.
Try on these stats from Pitchbook’s Global Private Markets Fundraising Report:
- More than $3.2 trillion is sitting in private market funds worldwide, including more than $1.7 trillion of it in traditional PC and VC funds.
- $639 billion in new fund commitments were raised (by 1,180 different funds) in the first half of 2022, which is roughly on pace to match 2021 record totals.
- Venture capital dry powder, at $562 billion, is at an all time high. And, in spite of a challenging IPO environment, in the first 6 months of 2022 over $157 billion in new VC monies was raised by 651 different funds.
- Private capital focused on real estate investing is an important market bellwether, with some market participants reporting an increase in the bid-ask spread between buyers and seller”, suggesting that “investors may be waiting on a reset in the economic cycle that would allow purchases of assets at depressed prices.”
- Most market observers believe that this dry powder accumulation is not a short term phenomenon, but rather a long term “megatrend” whereby private market investing has become a “safe haven” hedge against public market vagaries and vast fiscal and monetary governmental market interventions the world over.
My observation is that most of the traditional stakeholders in our market sector – most importantly operating executives leading solid, emerging and middle market companies – just don’t know any of this(!) and thus are missing precious opportunity to sell all or part of their companies, raise growth capital, restructure variable raise debt, expand via acquisition in partnership with capital providers, etc.
And who in the world is better experienced and positioned than great boutique investment bankers like us to advise and help them on any and all of the above?
As Charles Dickens might advise us…in a market like this we can all go direct to heaven or we can all go directly the other way.
The choice is ours.
Introducing Carl Castro – Compliance Operations Manager. The Firm is excited to announce our newest member of the GT Securities team, Mr. Carl Castro. Carl will serve as our Compliance Operations Manager, and will assist with administrative and regulatory processes and including U-4 updating, OBA disclosures, Annual Attestations, Continuing Education (CE), and much more. Please join me in welcoming Carl to the team!
Michelle Mueller, Chief Compliance Officer
Referrals. We are always interested in speaking to highly ethical and credentialed banking professionals to join our platform. Please reach out to me at [email protected] to learn more.
Zaya Bold, Director of Banking Partnerships
Happy September to all!