Happy Monday, Hubsters. MK Flynn here with today’s Wire.
Dealmaking in the lower middle market has flourished while many larger deals have languished.
To find out more about the opportunities – and also the challenges – of the lower middle market, I moderated a panel at PEI Group’s NEXUS 2024 earlier in March. One of the panelists was Suzanne Yoon, the founder and managing partner of Kinzie Capital Partners, a Chicago-based PE firm.
Today, we’re featuring a video conversation I had with Yoon at the summit.
In other news, generative AI is putting the kibosh on some deals, as dealmakers see obsolescence coming in the future for some companies that may seem fine today.
And finally, Japan has emerged as a bright spot for dealmaking in Asia-Pacific, as deals have dimmed in the rest of the region, according to a recent report.
Hands on
“One of the best things about the lower mid-market is that we can really have a true hands-on impact on our portfolio companies,” said Suzanne Yoon, founder and managing partner of Kinzie Capital Partners, a Chicago-based private equity firm investing in companies in the manufactured products, business services and consumer industries.
I spoke with Yoon about the opportunities and the challenges of investing in the lower mid-market. The video conversation took place on the sidelines at PEI Group’s NEXUS 2024 summit earlier in March.
To watch my video conversation with Yoon, upgrade to the premium subscription.
And for more coverage of private equity dealmaking at NEXUS, premium subscribers may read these stories on PE Hub:
• Blackstone’s Jonathan Gray: ‘Move before the all-clear sign comes out’
• Blackstone’s Jonathan Gray: ‘M&A will come back’
• KKR’s Nuttall:Big returns to be had after cycle bottom
• Carlyle’s David Rubenstein sets sights on individual investors
• Thoma Bravo’s Orlando Bravo: Strategic buyers are ‘incredibly active’
• AUA founder Andy Unanue brings ‘unique experience’ to family businesses
• Advent’s Mussafer: There’s stress in system amid optimism for 2024
Broken sales
Fears over generative AI’s impact are killing sales processes, with some investors viewing the technology as more of a threat to existing portfolios than as a moneymaking opportunity, Sascha Pfeiffer, head of European technology at investment bank Houlihan Lokey, told PE Hub Europe’s Craig McGlashan.
Upgrade to find out what worries dealmakers about GenAI.
Japan stands out
Japan was the standout performer for Asia-Pacific last year, despite a slump in regional dealmaking, reports Private Equity International’s Katrina Lau.
Find out why by upgrading your subscription to PE Hub.
On that note, I’ll sign off for today. As always, I’d love to hear from you at [email protected].
Craig McGlashan will be with you tomorrow.
Cheers, MK
Read the full wire commentary on PE Hub ...
