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This shift means that the competition for high-quality deals is intense, while the urgency to deploy capital remains high. According to data from Pitchbook and Affinity’s annual predictions survey, more than a third of nearly 300 respondents identified duediligence criteria as a major factor impacting dealflow.
The investment process involves a two-step approach to analysis whereby anything new coming into the portfolio (a manager or strategy, for example) is discussed first at the investment committee level, before further scrutiny by the investment, risk, legal and sustainable investing teams. Governance has been reviewed and refreshed.
I spent countless hours making investor intros, hosting pitch events, copy editing emails, providing deck feedback, introducing them to my top legal advisors, and more. Overseeing all the paperwork, legal, tax, and accounting docs required to make each investment and manage each SPV on an ongoing basis was time-consuming and onerous.
Technology ranked 4th in dealflow but had the highest average pursuit rate, 8.76%, of all sectors. See below for the full Q3 deal activity overview on the Axial platform, and for a more detailed breakdown by industry, check out The SMB M&A Pipeline: Q3 2023. .”
These technologies allow firms to process massive volumes of unstructured data—such as PDFs, legal documents, and financial reports—at unprecedented speed, scale but also precision. Traditional systems of record, such as CRM platforms, dealflow systems and portfolio management software, constitute the backbone of PE firms’ operations.
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