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When it comes to the middle market, the deals usually fall in the $50 million to $500 million rangelarge enough to garner serious investor attention, yet small enough to often fly under the radar of the mega-funds. In the middle market, where every deal counts, you need to be both methodical and a bit opportunistic.
Our conversion rate of deals approved by our investment committee to letters of intent signed is the highest in over two years at approximately 38%. Simultaneously, we have ramped up our efforts and leveraged our tenant relationships, exemplifying how we create proprietary dealflow and accretive off-market opportunities.
C3 AI's customer base continues to expand, both within and across industries, while maintaining exceptional levels of customer satisfaction by our continued focus on delivering measurable, significant enterprisevalue. Our partner network continues to generate opportunities and open new dealflow.
Our team's efforts continue to produce unique and proprietary dealflow, and we continue to identify attractive investment opportunities across all three external growth platforms. As of quarter end, pro forma for the settlement of our outstanding forward equity, net debt to recurring EBITDA was approximately 4.1
Last year resulted in a record-breaking year for deal volume on Axial, with 10,735 deals coming to market in 2024 a 7.8% The increase happened largely in the second half of the year, with both Q3 and Q4 resulting in 26% and 15% higher dealflow than the same periods in 2023, respectively.
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. Proforma for the settlement of our outstanding forward equity, net debt to recurring EBITDA was approximately 3.6
And the equity checks being written by these private equity firms are larger than they’ve ever been as well, greater than 50% usually of the enterprisevalue of the transaction that they’re, they’re taking on that, [ Ritholtz 00:14:56 That, that’s big. And they’re being bought out by private equity firms.
IK X surpasses its predecessor, IK IX Fund, which raised 2.8bn in 2020, and follows a period of intense dealflow for the firm. The fund has already been deployed into seven investments and will continue to target established European mid-market businesses with enterprisevalues above 200m.
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