Christian Vansant

Great Article https://lnkd.in/gkSbT4Th Value Creation is Key: Validated value creation plans, combined with a meticulous and programmatic delivery approach, helps address the pressing concerns of cash-hungry LPs by demonstrating a commitment to generating cash returns and meeting current LP demands, while strengthening trust between GPs and LPs. Key Points - Net IRR was once the gold standard for measuring PE success. - LPs say DPI (Distributed to paid-in Capital) is now paramount - Distributed to paid-in capital, is the ratio of cash generated to what’s invested. - GPs are generating cash however they can. - Exits are likely to hit a five-year low this year and the average hold  time for a portfolio company has grown to almost six years (Preqin) - PE distributions at major firms have plummeted 49 percent over the last two years. - Private equity firms are motivated to distribute cash to enable LPs to commit to future funds. - GPs are responding to the demand with alternatives to exits: continuation funds, NAV loans,  subscription lines, cutting management fees.

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ARR abuse, while obfuscating true GAAP revenue is a real issue. In VC pitch decks, I am noticing an increasing confusion in how the founders share the Annualized Recurring Revenue (ARR), Booked Revenue, and the GAAP Revenue. This recent WSJ article on this topic, as applied to #Crowdstrike, makes this point very well. Thanks Jonathan Weil Krishna Kunapuli, Dr. Pallab Chatterjee Rajiv Roy Sumanth Channabasappa #crowdstrike #accounting #saas #ARR #GAAP #Revenues

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Great analysis by the AGC team on SaaS public company comps. It's worth a look as we recalibrate mid-way through earnings season. The analysis aligns with the broader Nasdaq equity performance, where the Mag 7 (or fab 4 now :-)) have shown more resilience than the rest of the market. #AGC #SaaS #EarningsSeason #Nasdaq #EquityPerformance

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Main take-away for fellow searchers AND sellers: “EtA and search funds can outmaneuver PE funds, family offices and strategics.” Selling to a searcher gives you certainty on who will run (not just own) your company. If we are competitive in valuation what would hold you back vs PE who will select a CEO you have never met with a shorter term mandate? 

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