John Toomey evaluates how debt availability is shifting for early-stage companies post-SVB.
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“I think the venture debt business, the same thing, you'll have a bit of a retrenchment there.”
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More from John Toomey
PredictionNot checkable as stated
Toomey: Private Equity Could Expand Two to Three Times and Stay Healthy
“I think this industry could be two, three times the size than it is today, and still be healthy and functioning and lots of flows of capital.”
John ToomeyApr 17, 2023▶ 1:10:11Mario Giannini & John Toomey – Private Equity Panel (Capital Allocators EP.309)
Insight
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“We are witnessing the creation of a private capital markets, kind of not dissimilar to what we saw a 150 years ago underneath the old oak tree or whatever tree it was down at the corner of wall and broad.”
John ToomeyApr 17, 2023▶ 1:11:57Mario Giannini & John Toomey – Private Equity Panel (Capital Allocators EP.309)
AssertionSupported
Toomey: Broad Buyout Valuations Declined Only 5% in 2022
“And frankly, we didn't see that underlying in company performance continue to be strong even in the second half of the year. And we saw, I'd say, low single digit declines even at year end. For the broad buyout market, probably plus or minus five percent.”
John ToomeyApr 17, 2023▶ 9:19Mario Giannini & John Toomey – Private Equity Panel (Capital Allocators EP.309)
AssertionSupported
Toomey: Crossover and Mutual Fund Tech Managers Saw 25% Valuation Drops
“And I think certain managers, particularly the crossover investors, the mutual fund investors that publish their company valuations every quarter now, they really invested into that and took those valuations up to full value. That's where we saw the greatest d…”
John ToomeyApr 17, 2023▶ 9:49Mario Giannini & John Toomey – Private Equity Panel (Capital Allocators EP.309)
PredictionNot checkable as stated
Toomey: Longer PE Holding Periods Will Delay Realizations
“I think you'll see an elongation of the holding period. So when you look back and you saw what happened, again, it's not the same as the global financial crisis, but there's some lessons learned there. I think when managers are sitting on investments that are …”
John ToomeyApr 17, 2023▶ 15:27Mario Giannini & John Toomey – Private Equity Panel (Capital Allocators EP.309)
AssertionSupported
Toomey: PE Managers Are Fully Equitizing Deals to Refinance Later
“We've seen managers essentially fully equitize their companies today. With the view that they're just going to refinance out in a better market instead of taking it as much or at the same level of debt that they've used.”
John ToomeyApr 17, 2023▶ 30:16Mario Giannini & John Toomey – Private Equity Panel (Capital Allocators EP.309)
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