Tail End Capital Partners

Mike Blume of Tail End Capital Partners gave some insights into the single asset continuation vehicle market at a recent Alliance of M&A Advisors conference. Mike commented that, we have seen the single asset CV market grow from $3 billion, six years ago, to $30 billion last year. Tail End is focused on the lower middle market, where we think there is still a massive amount of under-penetration with only one-third of lower middle market GPs who have executed CVs. And the penetration for independent sponsor CVs (mid-hold equity recapitalizations) is much less. Link to article: https://lnkd.in/ehsJyewe The panel included: Ulrich Erasmus of Kian Capital Partners, Charles Cox of LongueVue Capital, Noam Hirschberger, CFA of PKF O'Connor Davies, Thomas Marking of William Blair, and Jamie Smith, CPA/PFS of Forvis Mazars US. #continuationvehicle #cv #sacv #singleassetcontinuationvehicle #singleassetcv #lmm #lowermiddlemarket #pe #privateequity #sbic #independentsponsor #liquidity #secondary #gp #generalpartner #lp #limitedpartner #gpledsecondary #sponsorledsecondary #secondaries

GP-led continuation vehicles ("CVs") are becoming a meaningful amount of exit volume, showing dramatic growth over the last five years. Private Equity GP's recognize the opportunity to use CVs as a tool to extend the hold period of great companies (in another entity) while providing liquidity to early investors. Tail End Capital Partners , with a single-asset lower middle market focus, is extending a version of the CV into mid-hold recapitalizations for independent sponsor backed companies. Chart from PitchBook study authored by Nicolas Moura, CFA titled: GP-Led Secondaries, Sizing the market for exits to continuation vehicles Article: https://lnkd.in/eA8Du5ys #sponsorledsecondary #independentsponsor #continuationvehicle #cv #gp #generalpartner #gpledsecondary #secondary #secondaries #buyout #lowermiddlemarket #lmm #pe #privateequity #liquidity #recap #recapitalization

Tail End Capital Partners has invested in a GP-led continuation vehicle, managed by Kian Capital Partners, providing liquidity and additional growth capital to Kian's investors in SPATCO Energy Solutions. SPATCO is one of the nation's leading fueling infrastructure solution providers quadrupling EBITDA under Kian's ownership since 2020. Tail End's Mike Blume said that SPATCO is a strong investment because SPATCO's solid management team along with Kian have spent the last few years putting the team, systems, and growth plan in place. SPATCO is a market leader in a highly fragmented and resilient industry, giving us confidence that the company can continue to execute on the playbook already in place. Full press release: https://lnkd.in/eYz2qvng #sponsorledsecondary #gpledscondary #continuationvehicle #lmm #lowermiddlemarket #pe #privateequity #indpendentsponsor #secondary #secondaries #liquidity #secondarymarket #buyout #controlbuyout #GP #generalpartner

Return data on continuation vehicles ("CVs") doesn't track mature funds yet but the early data shows that CVs outperform buyout funds with a much lower risk profile. "Sources of continuation vehicle alpha include (i) positive selection bias of high performing portfolio companies by private equity sponsors, (ii) mitigated change-of-control or blind pool risk, and (iii) transaction structures that look to optimize GP and LP alignment." This is why Tail End Capital Partners exclusive focus is sponsor-led transactions including single asset CVs of lower middle market companies with EBITDA from $10 million - $50 million. Source of quote and chart: HarbourVest Partners September 25, 2024 report titled, "Research validates growing adoption of continuation transactions." Report Link: https://lnkd.in/eGXp6Yin Authors: Valérie Handal, Lenny Li, CFA, Nathan Ritsko #cv #continuationvehicle #continuationfund #gpledsecondary #gpledsecondaries #sponsorledsecondary #sponsorledsecondaries #secondary #secondaries #pe #privateequity #lowermiddlemarket #lmm #fundmanagement #liquidity #portfoliomanagement

Link below to a sponsor-led secondary case study written in collaboration between Mike Blume of Tail End Capital Partners and Derek Minno of Point Capital. Derek, a veteran in the VC/PE world, has been chronicling (in SecondaryLink) the GP-led VC and now PE sector. The case study provides a detailed perspective into a sponsor-led secondary and Tail End Capital Partners' approach to these investments. The case study details Tail End's first investment, made in August, 2021, and it was also Tail End's first full exit in early 2024. Tail End has actually returned 97% of capital across the first three (of eight) investments proving out the velocity of capital in the Sponsor-led secondary market. Article Link: https://lnkd.in/dUftFXdz Point Capital Link: https://lnkd.in/dAx_j8wP #sponsorledsecondary, #gpledsecondary, #secondary, #secondarymarket, #secondaries, #independentsponsor, #cv, #continuationvehicle, #liquidity, #pe, #privateequity, #lmm, #lowermiddlemarket, #gp, #generalpartner

Tail End is pleased to announce two key personnel changes. First, we’ve promoted William Ford from Senior Analyst to Associate. Will joined Tail End as a summer intern in the summer of 2021 while he was completing his Finance degree at Penn State. In the three years since, Will has proven to be a tremendous investment analyst and invaluable firmwide resource. We’re proud to see Will take the next step forward in his career with Tail End. Second, we’ve added Carson Barnes as a Senior Associate to our investment team. Carson brings a wealth of experience, most recently working as a Senior Analyst at Incline Equity Partners. Prior to Incline, he was a Senior Equity Research Analyst with Consumer Edge. Carson has also served as a financial analyst with Stryker and a strategy analyst with PNC. Carson earned his Finance degree at Notre Dame.

Tail End is pleased to announce two key personnel changes. First, we’ve promoted William Ford from Senior Analyst to Associate. Will joined Tail End as a summer intern in the summer of 2021 while he was completing his Finance degree at Penn State. In the three years since, Will has proven to be a tremendous investment analyst and invaluable firmwide resource. We’re proud to see Will take the next step forward in his career with Tail End. Second, we’ve added Carson Barnes as a Senior Associate to our investment team. Carson brings a wealth of experience, most recently working as a Senior Analyst at Incline Equity Partners. Prior to Incline, he was a Senior Equity Research Analyst with Consumer Edge. Carson has also served as a financial analyst with Stryker and a strategy analyst with PNC. Carson earned his Finance degree at Notre Dame.

Paul Cohn will be representing Tail End Capital Partners on a webinar panel July 9th covering secondaries due diligence and secondaries in general - sponsored by DiligenceVault. The panel includes Paul Sanabria of Manulife, Tori Buffery of Nicola Wealth and Kristina Kulikova of Setter Capital Inc. Free Registration at: https://lnkd.in/gC3dGkPN #secondaries #secondary #gpledsecondary #sponsorledsecondary #GP #generalpartner #lp #limitedpartner #cv #continuationvehicle #continuationfund #lmm #lowermiddlemarket #pe #privateequity #liquiditymanagement #secondarymarket