Raising Capital Has Gotten Harder: Marty Nesbitt

The video discusses the current challenges in raising private equity funds due to higher interest rates and market changes. It highlights the difficulty in securing deals as sellers are less eager to sell at lower prices, leading to high competition for quality companies. The firm focuses on a niche strategy and sources capital mainly from the US, with some from Europe and the Middle East. It emphasizes the need for discipline, a strong network, and a systematic approach to create value in this tough environment.

What are some factors making it difficult to raise private equity today?

• Increased government regulations

• Lack of investor interest

• Low interest rates and high demand

• Over-allocation and higher interest rates

Which regions contribute to the firm's capital apart from the US?

• Europe and the Middle East

• Asia and Africa

• Canada and Mexico

• South America and Australia

Why are sellers less eager to sell in the current market environment?

• There is a lack of buyers

• They are waiting for better prices

• They are facing legal issues

• They are expanding their businesses

What is a key strategy for selecting businesses in a competitive market?

• Investing in any available business

• Picking businesses where systematic value can be created

• Selecting businesses with low competition

• Choosing businesses with high debt

How does the firm plan to manage financing in the current market?

• By reducing equity in businesses

• By avoiding any new investments

• By over-equitizing businesses and stabilizing debt later

• By increasing debt immediately