Deal Origination Case Study

Gabe Galvez

Client #1 Proprietary deal origination

A private equity group with a $250 million fund and a five-year time horizon to deploy the capital approached CAPTARGET about our deal origination services. At that time they had deployed $12 million and had just four years remaining on the fund to deploy the remainder. Historically the group depended on inbound, referral based lead flow which worked well for a time.  Since then, deal flow is dry and they’ve tapped all of their referral sources.

Anxious to deploy more capital, they asked us to manage a campaign approaching manufacturing and distribution companies in the western United States with at least $20 million of revenue. We developed and ran a three-month campaign.

After three months here are the results:

  • Preliminary discussions with 17 new companies that they had no previously engaged with
  • Post NDA due diligence is being completed with 5 target companies

The client pays $2500 per month and never pays any success fees.

Client #2 non-proprietary deal origination

A lower-middle market private equity fund approached CAPTARGET regarding our non-proprietary deal origination services. They asked us to reach out to our database of more than 4,000 intermediaries monthly to relay their investment criteria on a consistent basis while screening these oppotunitites to ensure the deals we presented to them were consistent with their investment criteria.

After three months here are the results:

  • Preliminary discussions with 37 new companies
  • 3 submitted Letters of Intent
  • In diligence with 1 target

The client pays $1000 per month on a 3 month commitment basis.

The proof is in the pudding…

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