Competition for capital is more challenging than ever. As reported by the Wall Street Journal, “There are 2,845 funds currently in the market seeking capital, collectively aiming to raise over $1 trillion in capital, according to Preqin. Both figures represent increases of more than 60% over the beginning of 2021.”1
This number of capital-seeking funds represents almost 50% of all private fund management companies registered with the SEC based upon our analysis of SEC registered investment advisors.
Heightened capital competition means that preparation, building capital markets brand and leaving no stone unturned in the capital seeking process is more important than ever. We are receiving increasing requests from Capital Providers or their capital seeking companies for our Strategic Capital Consulting, where we help companies prepare or organize themselves for capital solutions prior to actively sourcing capital. We look forward to hearing from you!
Insight Update: Insights from previous newsletters highlighted declining freight cost structures and dollar strength indicators which seem to be playing out as USD hits record strength against the Euro and freight rates start to fall2. We are anticipating improving inflation indicators in the not-too-distant future.
Battery Resources and Processing: Russia and China have established themselves as the leaders in battery minerals and processing and are often considered the global bottlenecks in terms of battery development. . It is less well known that Canada has the main minerals (Lithium, Cobalt, Nickel, and Vanadium) that are required to produce batteries. As Canadian production comes online for these important minerals, Russia and China’s battery dominance should lessen.
SelectUSA Summit: The recent SelectUSA Foreign Direct Investment Summit sponsored by the U.S. Department of Commerce where Deer Isle’s CEO moderated a panel and judged a FinTech pitch contest, brought together over 3,000 global participants Some takeaways from this conference include:
- The U.S. government has a large number of key initiatives to expand/improve environmentally friendly infrastructure development. Some examples include:
- Clean energy and related infrastructure, e.g., $4 billion in loans for development of sustainable aviation fuel. Incentives for building out an electric vehicle infrastructure.
- Support for rural America, including loan guarantees for environmentally friendly AgTech such as ESG improvements for food processing
- Rural area development including expansion of broadband such that all Americans have access to broadband, which would attract more high-paying technology jobs to rural areas.
- The good news – International participants still consider the US the best place in the world to do business based upon our capitalist structure, culture of innovation and rule of law!
Entrepreneurship is alive and well – over 5 million new companies were launched in 2021, a 20% increase over the total in 2020.
Contact us below to discuss
Deer Isle Group, LLC
800 Brickell Ave, 4th Floor I Miami, FL 33131
1 “Buyout Firms Seek $1 Trillion of New Funding Even as Markets Drop and Deal-Making Dries Up”, The Wall Street Journal, July 18, 2022.
2 “Freight Rates Are Starting to Fall as Shipping Demand Wavers”, Wall Street Journal, July 10, 2022