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Selling an individual or family-owned privatecompany used to be like hitting a golf ball. Outsourced business development firms, analytical services, and dealflow advanced by independent sponsors are all in the mix. More complex valuation metrics Privatecompany valuation has become both less and more complex.
In 2023, we made 21 investments into net new companies (42%) and participated in 29 follow ons (58%). That compares to 2022 where we invested in 36 net new companies (66%) and only 18 follow ons (33%). There were approximately 15k total deals completed representing $170 billion invested (see chart 1 below). since 2019.
There’s never been a more lucrative time for private equity (PE) firms to find and invest in businesses. in 2022 — and the opportunities continue to open up across the globe. Knowing how to find private equity deals before they’re closed by another company is essential for any firm that wants to compete and grow.
Our team's continued efforts to create value and identify these opportunities combined with our improved cost of capital have opened up a larger opportunity set and resulted in accelerated dealflow. Hobby Lobby, which is a privatecompany with effectively no -- no long term debt. He's the owner of Hobby Lobby.
So the theory was that’s great that you’re providing a loan, but if you can co-invest with them and get the upside of partnering with some of the most successful private equity funds in the United States, you know, a great way to enhance your returns. Tell us a little bit about what made everything click in 2022?
Since the Fed began its interest rate tightening cycle in 2022, we've spent considerable time on our earnings calls discussing how we see the macro environment unfolding. The relationships we have there, that dealflow is very helpful to our credit business as well. So we feel good about what we're doing.
RITHOLTZ: I forgot to mention, you have received the Chevalier dans l’Ordre de la Légion d’Honneur by the president of the French Republic in January 2022. MATHIEU CHABRAN, CO-FOUNDER, TIKEHAU CAPITAL: Thank you, Barry. We’ll circle back to that at some other point. Are there some conflict of interest involved here?
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