Bill Murphy

We're proud to celebrate Sector Lead, Matt Witheiler's fourth consecutive naming to Forbes’ ‘The Midas List: The World’s Best Venture Capital Investors in 2024'. Kudos Matthew Witheiler - this is testament to your enduring impact on the late-stage VC industry. https://lnkd.in/eBdHwBG4 Wellington Management did not pay a fee to be considered. Winners were selected by a data-driven approach, the Midas List is produced from a combination of public data sources and the submissions of hundreds of investment partners across hundreds of firms each year. This award was announced on June 4, 2024, a submission made in January 2024 and is based on 5 years of trailing data. The award may not be representative of any one client’s experience. The award is not indicative of Wellington Management’s future performance. Past performance is no guarantee of future results.

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Hot off the press from my Cliffwater colleague William Dornbrook: Startups on Sale: The Opportunity in VC Secondaries This paper outlines our perspectives on venture capital secondaries, an asset class at an important inflection point for future growth. Structural changes in private markets, a growing need for liquidity from LPs, and near-term headwinds in the IPO market have led to increased investor interest in VC Secondaries. Amid this backdrop of highly motivated sellers and improving metrics for startup quality, we believe VC Secondaries are priced attractively.

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More important today than ever before.

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Is Now the Best Time to Raise a Private Equity Fund? According to industry leaders, it just might be. "I’m much more optimistic at this point in the cycle in 2024 than I was in 2023 and 2022," says Andy Lund, global co-head of Houlihan Lokey's Private Funds Group. Despite expectations of a slowdown, the first half of 2024 has been unexpectedly successful for PE managers raising capital. U.S.-based funds closed on $155 billion by the end of June, slightly ahead of the first half of 2023 (PitchBook Q2 2024 US PE Breakdown). Alex Russ, head of North America for Evercore's Private Funds Group, sees this as an ideal moment for GPs with open funds. "We saw fewer new fundraise launches in 2024 than in 2022 and 2023, leading to a slight easing, which we expect to continue into the second half of this year," he notes. However, challenges remain. LP capital is still largely locked until M&A and exit activities resume. Evercore anticipates flat PE fundraising figures for 2024 compared to 2023. Moreover, other asset classes are vying for already limited institutional capital, with private credit showing particularly strong growth. In this context, Maria Konnikova’s "The Biggest Bluff" offers an insightful analogy. Inspired by "Theory of Games and Economic Behavior" by John von Neumann and Oskar Morgenstern, the book explores von Neumann's belief that poker epitomizes the delicate balance between skill and chance that governs life. Doing well at poker isn’t just about playing well; it’s about playing well relative to everyone else. And even with the best strategies, luck plays a critical role. As Nobel-winning economist Daniel Kahneman notes, "The successful funds in any given year are mostly lucky; they have a good roll of the dice. There is general agreement among researchers that nearly all stock pickers, whether they know it or not—and few of them do—are playing a game of chance." The last two years were like drawing a bad hand in poker for those raising funds. The book also emphasizes the importance of thinking like a Strategist—something I’ve honed throughout my career. Each move requires reassessment based on new information. You need a plan that evolves with feedback and supports long-term, good decision-making. If you’ve lost your chips, was it due to an unlucky situation—or because your strategy was flawed? A recurring mantra of Poker Hall of Famer Erik Seidel is "less certainty, more inquiry." If that becomes your guiding principle, not only will you actively listen, but you will also adapt and grow. For GPs, strengthening relationships with existing LPs is more crucial than ever. Now is the time to leverage your learnings and craft compelling narratives that showcase your commitment to value creation and strategic growth. By highlighting your firm's ability to navigate complex market dynamics, you can strengthen LP alignment and foster the partnerships needed for long-term success.

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One of the most exciting questions from this interview was "what key attributes do private equity firms seek in targeting healthcare, biotech, and life science companies for acquisition?". Private equity firms are increasingly attracted to the healthcare, biotech and life sciences industries due to their resilience against economic cycles. Attributes that PE firms prioritize include: Stability and Growth Potential: Companies that demonstrate consistent revenue growth and have a solid track record of performance are highly attractive. The ability to withstand economic downturns and maintain steady growth is a crucial factor. Service and Software Focus: Companies that provide essential services and software solutions within the healthcare ecosystem are less vulnerable to regulatory changes and scrutiny, making them reliable investment targets. Regulatory Compliance and Low Risk: PE firms typically avoid companies with high science risk. Instead, they favor businesses with well-established products, services and technology. Specialization and Expertise: Many PE firms seek companies with specialized knowledge and capabilities that align with their strategic focus areas, ensuring they can add value and drive growth post-acquisition. Thank you to the Los Angeles Times for inviting me to participate in this issue! I am honored to be able to contribute to this piece. If you'd like to discuss any of the insights from this issue, reach out to me directly. #privateequity #lifesciences #healthcareservices #biotech #investmentbanking #businessvaluation

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𝗟𝗮𝘄𝗿𝗲𝗻𝗰𝗲 𝗘. 𝗚𝗼𝗹𝘂𝗯 joined CNBC's 𝗗𝗮𝗻 𝗠𝘂𝗿𝗽𝗵𝘆 on the ground at Milken Middle East and Africa Summit to share why there's reason for optimism heading into 2025: "The skill and adaptation that PE firms have shown really demonstrates how good PE is in the U.S. economy. We're getting to a point where confidence in the economy, valuations and availability of capital is going to restart that part of the engine." Watch here: https://okt.to/w9eIfr #Milken #MiddleEast #privatecredit #AbuDhabi #CNBC

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Exciting to see infinitas capital and Opportuna featured in Bloomberg as part of the growing conversation around family offices and the secondary market. With liquidity tightening and investor demand building, Opportuna is seizing the potential of venture secondaries, offering an avenue to unlock liquidity and realize solid gains within a shorter timeframe. To learn more about @Opportuna and our strategy, reach out to Alban C. or Christopher L.R. Chuffart

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Secondaries and GP stakes are harmonious areas of investment: both capitalize on the growth in private markets… firms are increasingly recognizing the benefits that a partnership can bring in terms of providing capital and expertise.     Thanks to PEI for the feature and Ward Young for the partnership on the demand we’re seeing across the GP stakes landscape!  

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Moelis acts as Exclusive Placement Agent to Archer, electric vertical takeoff and landing (eVTOL) aircraft developer, on its $430 million common stock PIPE in conjunction with the announcement of a strategic partnership with Anduril Industries. #CapitalMarkets Press release: https://bit.ly/3BhRjwT

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Moelis acts as Exclusive Placement Agent to Archer, electric vertical takeoff and landing (eVTOL) aircraft developer, on its $430 million common stock PIPE in conjunction with the announcement of a strategic partnership with Anduril Industries. #CapitalMarkets Press release: https://bit.ly/4iBFfY8

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Moelis acts as Exclusive Placement Agent to Archer, electric vertical takeoff and landing (eVTOL) aircraft developer, on its $430 million common stock PIPE in conjunction with the announcement of a strategic partnership with Anduril Industries. #CapitalMarkets Press release: https://bit.ly/4iBHqLi

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After raising nearly $1B in capital in recent months, some acquisitions are especially fulfilling - this one being the case. But, first, a thanks and brief recap. In a stage in life I’ve come to learn as 'post-achievement,' my good friend Damien Rocchi told me recently: “Jeff, you may not feel the need to share what’s been going on in your world, but there are probably many people who would like to know because they care about you.” Thank you, Damien, for the wisdom and kindness. Now, for the recap. Hard to believe, but this year marks a decade since I signed the contracts governing the sale of my former company to Baker Tilly. The years following the merger brought great experiences, scale and phenomenal people into my life - both professionally and personally. Lots of good decisions (and some mistakes) that led to a tremendous journey which included: * The privilege to work and create value across 100+ countries * Effecting large-scale, positive impact spanning multiple industry sectors, companies and the teams within them * The invitation to consider the global CEO role for a $4B organization If someone told me in 2014 that this is what would be ahead, I may not have believed it. The years since the merger were indeed great - and the people even better. My hope during the time we worked together is that I brought each of them some small measure of the significant enrichment they brought me. As in life, one’s career has seasons. In 2020 it was time for a new one to begin in mine - even if such change would not be immediate. In long being a 'free agent' post-close in the sale of my company, the pandemic marked a point of observation, reflection and clarity: it was time for a change. Specifically, it was time to return to industry as CEO through acquisition, with a focus on sectors aligned with my experience. The aim: find a company that does good work but facing an evolutionary hurdle - whether in leadership succession gap, growth, recapitalization or otherwise. Once identified, acquire it, lead it and honor the legacy of those who founded it by generating outsized market value and positive impact post-close. And to such work I took, starting in earnest in mid-2022 and joining forces with a small but mighty group of great people. Together, we raised nearly $1B of capital in support of single asset fund deals where we could lend our experience in turning good companies to into great ones. While there have been many deals in recent months, one where I can combine my love for healthy company cultures with my passion for value-creation and all things tech, mobility, space and the conquest of flight, this is an especially fun one share. Heartfelt thanks to those of you who have been part of the journey thus far, and who continue to be part of it going forward. Means a great deal. Excel always and in all ways - and keep in touch. https://lnkd.in/dsGiYnD2

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PE - Hedge Funds Hit by Lack of PE Exits (and one way that PE firms can boost exits) Financial Times: https://lnkd.in/edACss_X FYI - one way to get more PE exits is for the PE fund to have a domain expertise GTM and have deep knowledge on how to increase the Revenue Growth of portfolio companies which boosts cash, profits and margins. --- #pe #privateequity #business

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In his latest article, Drew Schardt discusses private equity performance across different macroeconomic environments. Read here: https://gag.gl/p38pDu

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Despite the recent Non-Farm Payroll (NFP) reports being lauded as "strong" and "solid," a critical underlying metric tells a different story. The Implied Hiring Rate has actually plummeted in the last two NFP reports, exposing a glaring disconnect between surface-level praise and deeper labor market dynamics. Is this time different?

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On the Small Fortune Podcast, Carol talks to Mark Couchman, the founder of Silverado Premium Properties, the largest institutional investor in California vineyards before its sale to TIAA-CREF. In this information-packed conversation, Mark and Carol discuss: the importance of knowledge of the market in general and the asset (whether as a buyer or seller) in question; how to negotiate; offer strategies; building trust as a buyer or seller; how growers should think about decisions to crush grapes for sale as bulk wine; and many other topics. https://lnkd.in/g-pSjiT4

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Baird is a proud Bronze sponsor at the upcoming The Bond Buyer California Annual Public Finance Conference. We look forward to seeing you there. Brian Brewer Alexander Boutyrski Anne Mongoven Baird Fixed Income Capital Markets #wearebaird #markets #bonds #fixedincome #publicfinance #municipalbonds #leadership #bairdpublicfinance #thebondbuyer #investmentbanking #californiaconstruction #california #retail #finance #financeandeconomy

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PE - The Future of PE Investing Is All About...(Source: Partners Capital) Great data-driven insights from Partners Capital (an Investment Management service acting for endowments & foundations investing as LPs in PE) - by Daniel L. & Stan Miranda at Partners Capital: https://lnkd.in/eszXTMej "...we believe the Private Equity industry is currently experiencing a paradigm shift that will result in all Private Equity investors (LPs and GPs) focusing almost exclusively on the ability of the PE firm to grow portfolio company earnings faster than under the previous ownership. We refer to this as the PE owner’s post-acquisition operational value add (PAOVA), which is their set of skills and tools that are a core source of value creation. We believe the future is about identifying the firms with the greatest – and most repeatable – PAOVA capabilities." #business #pe #privateequity #investing #growth #valuecreation

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