Zachary Bohan

Blackstone is taking a controlling stake in Jersey Mike’s Subs, valuing the fast-casual chain at $8 billion. Founder and CEO Peter Cancro will stay on, retaining a significant equity stake and continuing to lead the brand. This move taps into the fast-casual boom, with the market projected to grow by $302.5B by 2028. Blackstone plans to fuel Jersey Mike’s global expansion and invest in technology to enhance operations and customer experience. This deal reflects a growing private equity trend: targeting premium, scalable franchise businesses that align with consumer shifts and offer strong growth potential. Private equity is leaning into franchise growth. It'll be interesting to see what this means for the future of food and beverage investments.

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If you missed our active adult session, check out the recap below

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Very interesting to see the National Football League (NFL) hired our friends at leading global investment bank PJT Partners to serve as a liaison between the league and private equity firms interested in buying stakes in teams, as a step towards attracting institutional capital which can further increase deal flow and valuations. The average NFL team is worth $5.14 billion, according to Sportico, by far the highest of any U.S. league. To buy the hypothetical average team under current league rules, a buyer would need at least $1.54 billion in cash, could add $1.2 billion in debt, and would still need to fund the other $2.4 billion from themselves or a set number of individuals who often get little of tangible value for their minority stakes. As franchise valuations continue to rise, that becomes a harder and harder financial proposition. Expanding the pool of potential buyers for minority stakes would likely increase valuations across the league. In addition to the ban on institutional money, the National Football League (NFL)’s ownership rules include a $1.2 billion debt limit for new buyers, a limit to how many minority owners a team can have, and a set amount that a team’s lead owner can hold (30% for incoming buyers). A new committee has been formed to discuss the loosening of some of those rules to make room for institutional investors ie private markets fund managers. Will the National Football League (NFL) partner with a private markets fund manager to establish a stakes platform similar to what the National Basketball Association (NBA) has established with Blue Owl Capital? I love the business of sports and I am very interested to see next steps here. #alternativeinvestments #sportsbusiness #privatemarkets #nfl #capitalmarkets #institutionalinvestors #fundmanagers #privateequity #sports

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Foundations of Private Equity: A Google Doc with 317 Comments As their midterm project, students in my Foundations of Private Equity class at Columbia Business School prepare an Investment Committee (IC) Memo proposing a transaction. Their memos include identifying a an attractive PE target, developing an LBO model, articulating a value creation plan, and identifying potential exit strategies. All the while, students make the case for why their group is a better owner of the target company than the public markets are. While students group present in class, I ask their classmates to provide feedback to their peers using a Google Doc. It was a joy to see the class generate, in real time, 317 comments for the 13 memos presented. What does a Google Doc with 317 comments tell you? 1. Developing a discerning eye Our students are actively learning what good private equity Investment Committee Memos look like. They commented on target identification and valuation, the creativity of value creation plans, the clarity of exit options, and much more. 2. A supportive group of learners Students' feedback for their peers was thoughtful and encouraging. It was a powerful display of a supportive group of learners in action. 3. A more attainable skill set Many of my students begin this course intimidated by private equity. In the words of one student after completing the project, "I feel that this process has been demystified and is more attainable, especially when working with a strong and motivated team." Our 12-session course seeks to provide students with a taste of being a private equity practitioner. It is heartwarming to see students so actively supporting each other on the journey. Columbia Business School Private Equity Program Michael Ewens ; Donna M. Hitscherich ; Greta Larson ; Michael Hillmeyer Nathan Garlock ; Ke Ding Arthur J. Samberg ; Columbia University #businesseducation #privateequity

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MARKETS: YEAR-TO-DATE - Nasdaq: $17,683.98 (+19.76%) - S&P: $5,626.02 (+18.62%) - Dow: $41,393.78 (+9.75%) - 10-Year: 3.650% (-29.6 bps) - Bitcoin: $59,547.97 (+40.89%) - Coca-Cola: $71.41 (+22.09%) *Data is provided by yahoo/finance. Stock data as of market close.* “Markets: Stocks snapped out of their September funk in a big way last week, posting their best week of the year ahead of the Fed’s expected interest rate cut on Wednesday. It was a broad rally: riskier assets like tech stocks jumped, but so did more “defensive” plays that would probably do well in a recession. Coca-Cola, Walmart, and the rest of the consumer goods sector have outpaced the S&P 500 index in six of the past eight weeks, per Bloomberg data.” This is from Morning Brew, daily read. It’s awesome: https://lnkd.in/dE6Q443z

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"The nascent firm created by a 2021 Spac merger will soon manage more than $200bn Blue Owl has earned a high public market valuation. And the private capital upstart is showing that it is not afraid to use it. So far the manager has announced $1.4bn worth of deals this year, across three acquisitions. This month, in its latest transaction, it acquired the credit manager Atalaya Capital Management, for $450mn. More interestingly, it has used its own shares for about two-thirds of the total consideration paid across the trio. Its growth prospects and focus on steady private credit investing, as well as ownership stakes in other large private equity managers. Its price to trailing last 12 months cash earnings per share ratio is a healthy 28 times. This formidable currency has allowed Blue Owl, whose equity value is $26bn, to make big bets. Many other firms have preferred to grow steadily and organically. But Blue Owl sees the future as now and wants to win the land rush. The good news for them is that they have shown enough promise to Wall Street to make their stock currency very deployable."

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Fund manager GP stake investments are one of the most active strategies in private markets with limited partners across the globe committing to GP stakes funds, and fund managers selling stakes to such fund managers, with almost every manager of decent quality entertaining such discussions. As long-standing GP stake and seeding investors, we have experienced several pros and cons which we can discuss later, but this is great data shared by Ed Stubbings and created by leading private capital markets advisor Houlihan Lokey listing GP stakes deals over the past 1 year. More deals to come and I would look forward to catching up with Houlihan Lokey on the market. Thank you for the insights! #gpstakes #alternativeassets #fundmanagers #capitalmarkets #data #fundmanagers #privatemarkets #privateequity #limitedpartners

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Football is back and so is our latest Sports Market Update! Houlihan Lokey is pleased to present our Fall 2024 Sports Market Update, in which we share key observations driving growth across the sports ecosystem, including high growth areas ripe for further investment (e.g., emerging leagues, sports, women's sports, youth sports, college sports) and provide an inside view of the sports investor landscape highlighting the most active financial investors and strategic dealmakers. We also discuss the current market and valuation environment, including the latest professional sports franchise valuation data, M&A transactions, financings, and more. We look forward to discussing our growing excitement for the sports technology space, investment in which is fueled by several transformational tailwinds driving growth across the broader sports ecosystem. Click here to learn more: https://lnkd.in/gd_YnZ4w #sports #kickoff #youthsports #womenssports #nil #ai #privateequity #m&a #nfl #nba #mlb #nhl #uefa #mls #combatsports #mediarights #bigtech #livesports #ip

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𝗠𝗶𝗮𝗺𝗶 𝗗𝗼𝗹𝗽𝗵𝗶𝗻𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗩𝗲𝗿𝗴𝗲 𝗼𝗳 𝗣𝗶𝗼𝗻𝗲𝗲𝗿𝗶𝗻𝗴 𝗣𝗘 𝗗𝗲𝗮𝗹 𝗶𝗻 𝘁𝗵𝗲 𝗡𝗙𝗟 🏈 The Miami Dolphins could become the first team to benefit from the NFL's recent regulation change on team ownership. Owner Stephen Ross is in talks with private equity giant, Ares Management Corporation, and Joe Tsai, co-founder of Alibaba, to sell a 10% and 3% stake, respectively. This would value the Dolphins and related assets at over US$8.1 billion. Sources familiar with the transaction suggest that Ares’ and Tsai’s investments would include assets such as the Hard Rock Stadium, home of the Dolphins, and F1 Miami Grand Prix. While negotiations are still ongoing, the deal may be approved at the owners' meeting in December. As a lifelong Dolphins fan, it’s exciting to see what this potential deal could mean for the organization. It’s not just about financial growth—it’s about elevating the Dolphins' legacy, enhancing fan experiences, and driving innovation in sports and entertainment. Sources: Bloomberg ; Randall Williams 📷 : Miami Dolphins and Hard Rock Stadium

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📊 1 WEEK 1 DEAL - SOUTHSTATE ACQUIRES INDEPENDENT BANK   SouthState acquired Independent Bank, with an anticipated closing by the end of Q1 2025. This deal values Independent Bank at $2.0 billion, while SouthState's market cap stands at $6.16 billion.   This acquisition follows significant disruptions in the industry, including the collapse of Silicon Valley Bank and Signature Bank last year. Just last month, UMB Financial announced a $2 billion deal to buy Heartland Financial. These moves highlight the ongoing consolidation in the U.S. regional banking sector, driven by pressures such as elevated exposures to the commercial real estate (CRE) sector.   #1Week1Deal #InvestmentBanking #OneWeekOneDeal #MergersAndAcquisitions

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In case you missed it, the LLR Partners 2024 Growth Guide offers peer advice from our value creation team and portfolio company leaders. Download it now in time for year-end planning: https://lnkd.in/ekaN6hQK #GrowthBits #LeadershipAdvice

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Lower middle market M&A continues to show robust activity in 2024. GF Data reports 180 deals closed in 1H, set to outpace 2022 and 2023. Average multiples up to 7.4x EBITDA in Q2 from 6.9x in Q1. Seller-friendly environment emerging. Smart business owners are aligning with the right advisors to navigate these shifts. Wondering where you fit in? Reach out to learn more: https://lnkd.in/e6yVTpb4 #growthstage #REAG #mergers #business #acquisitions #lowermiddlemarket #investmentbank

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Apollo's 16 unique specialty finance platforms can provide direct and custom solutions for large projects, including infrastructure and the energy transition. Learn how Apollo’s origination ecosystem offers tailored, long-term financing solutions across various sectors, addressing capital needs where traditional funding falls short: https://lnkd.in/gsfpKnQk

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The NFL has recently changed the game with private equity groups now allowed to invest in teams. 🏈 Dez SVP Michael Bova explains how the decision might have some drawbacks for investment firms. “Private equity firms have now secured investment entry into the last big professional sports league as the NFL has voted to allow firms to take up to a 10% stake in teams. The NFL approved four initial firms that will be able to inject a serious amount of capital into a max of six teams each. CNBC reports that the firms intend to commit $12 billion of capital over time, which works out to about $500 million for each team that receives an investment. With salary restrictions, this additional investment will likely go toward stadium improvements. However, investing in the most popular and profitable professional U.S. league doesn’t come without some uncomfortable strings for PE. This deal provides them with no governance rights, no preferred equity investments, and a requirement to hold stakes for a minimum of six years – that is a long time for firms that are traditionally looking for a quick turnaround.” https://lnkd.in/eNV5m7FM 

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PE dealmaking in the United States reached an all-time peak of $1.2 trillion in 2021, according to the Pitchbook Q1 2024 US PE Breakdown. Since then, 2023 finished 41.2% below that number, and there are no signs that we will return to those record levels anytime soon. However, deal flow has begun to stabilize over the past few quarters. In Q1 of 2024, deal activity maintained a largely flat trajectory. The estimated number of deals was slightly higher than the previous year, while the total value of deals experienced a modest decline. To learn more about current PE trends, visit https://hubs.la/Q02zsMj10 to access the full report. #PE #PrivateEquity #Data #UnitedStates #Deals #BusinessOwner https://hubs.la/Q02zsS3p0

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Everyone in private equity knows that fundraising has been tough over the last few years. It got me thinking—what makes a GP stand out in times like these? Success in private equity is often measured by metrics like IRR, multiples, and distributions. Beyond the spreadsheet lies a critical differentiator that's often overlooked: Honest Intelligence (HI). HI is about being honest with ourselves—acknowledging strengths and weaknesses, recognizing mistakes, and taking corrective action. It involves turning tough conversations into opportunities for growth. HI manifests in three distinct personas: 𝟭. 𝗣𝗮𝘀𝘀𝗶𝘃𝗲 𝗠𝗮𝗻𝗮𝗴𝗲𝗿: Lacks awareness of challenges and does not take any meaningful action. They operate reactively, often missing opportunities for improvement or addressing shortcomings. 𝟮. 𝗠𝗶𝗻𝗱𝗳𝘂𝗹 𝗠𝗮𝗻𝗮𝗴𝗲𝗿: Reflective and aware of the challenges they face. They acknowledge problems but take only limited or cautious actions. They address issues more openly than passive managers but may stop short of taking bold steps or making significant changes. 𝟯. 𝗣𝗿𝗼𝗮𝗰𝘁𝗶𝘃𝗲 𝗠𝗮𝗻𝗮𝗴𝗲𝗿: Fully aware of their challenges and take decisive, substantial action to shape their future. They actively seek opportunities for improvement and take ownership of driving change, showing both agency and foresight in their approach. The Proactive Manager is able to address adversity and transform it into a catalyst for stronger relationships and future success. Here are a few examples of how Proactive Managers addressed challenges: • ⁠Challenge: “We didn’t sell enough companies.” • ⁠Fix: Created a Realization Committee. • Challenge: “We invested the fund too fast.” • Fix: Developed an annual pacing model. • ⁠Challenge: “We did too many cross-fund transactions” (nobody said it, but I wish they did). • Fix: Sell, tomorrow!! In today’s competitive private equity landscape, honesty is strategic. 𝙋𝙡𝙚𝙖𝙨𝙚 𝙣𝙤𝙩𝙚 𝙩𝙝𝙖𝙩 𝙩𝙝𝙚 𝙫𝙞𝙚𝙬𝙨 𝙚𝙭𝙥𝙧𝙚𝙨𝙨𝙚𝙙 𝙝𝙚𝙧𝙚 𝙖𝙧𝙚 𝙢𝙮 𝙤𝙬𝙣.

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The chart below is a list of calling officer level FIG Investment Bankers that have moved in the past 12 months. You can add Houlihan Lokey's Acquisition of Waller Helms Advisors, a boutique Insurance and Wealth Management focused investment bank, to the list. The 2nd quarter of 2024 was the best in two years for investment banks as stocks traded up on the narrative of capital markets reopening. According to a July article in the Financial Times, the five largest U.S. investment banks reported investment banking fees of $8.2B in the second quarter, which was a 40% increase over Q2 of 2023. While the optimism of July has subsided a bit, hiring across FIG Investment Banking is as active as it's been since early 2022. This includes the recruitment of execution staff, which is always an early indicator of an improving situation for the investment banks. My guess is that the 2024 bonus season will mark the end of the "buyers' market" for the investment banks. There is too much uncertainty still out there (slowing economy, election, geopolitical events) to be confident in that prediction...but we can hope. * I know we’ve likely excluded a few “Hires” so please feel free to mention additions that should be included in the comment section below. ⬇️ #hiring #Investmentbanking #financialinstitutions #wallstreet

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