Tail End Capital Partners

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

Tail End Capital Partners' contention is that single asset GP-led secondaries (i.e. continuation vehicles) offer the best return potential vs. LP led secondaries or multi asset GP-led secondaries. Why? GP-led transactions are formed around high performing companies where the GP is looking to double down, and the buyer can do deep diligence on the companies to ensure their high quality. Single asset CVs are also de-risked investments because the heavy lifting has been done in the rear view mirror. De-risked but the return profile is similar to buyout returns. Full Article by Priyanka Iyer of SecondaryLink: https://lnkd.in/enBBAn_9 #gpledsecondaries #continuationvehicle #cv #sponsorledsecondary #returnprofile #secondary #secondaries #secondarymarket #liquidity #gp #generalpartner #lp #limitedpartner #continuationfund #pe #privateequity #lmm #lowermiddlemarket #singleassetcontinuationvehicle

The punchline of a great Cliffwater research paper by Phil Huber,. "Continuation vehicles...present a compelling investment opportunity with supportive supply-and-demand factors in place. <Underwriting asset quality, investment thesis and GP-alignment is key>. If those pieces are in place, investors have the potential to generate returns favorable to traditional buyout funds..." The report can be found on Phil Huber, CFA, CFP? LinkedIn page along with a lot of other great content. Or at this link: https://lnkd.in/eBFBXdSi Note that wording in brackets <> are my paraphrasing. #continuationvehicles #cv #continuationvfunds #gpledsecondaries #secondaries #secondarymarket #secondary #sponsorledsecondaries #gp #generalpartner #lp #limitedpartner #liquidity #privateequity #pe #lmm #lowermiddlemarket