I’m Ryan Austin, founder of Arondight Advisors.
The Wall Street Journal recently reported that private equity firms are facing a nine-year backlog of unsold portfolio companies.
Two things put them there. Many of those assets were bought for a market that no longer exists. AI is forcing buyers to reassess which legacy software companies still have durable value: acquirers paid a median 6.4x trailing revenue at the 2021 peak and 3.2x as of April this year, per S&P Global.
Here is what happens when capital loses agility.
For Family Offices, the question is this: how do you build the agility to take advantage of this dislocation?
Over the next few weeks, I’ll send a short series on that question: what agility is worth in this market, where the flow went, and how Family Offices are building a sharper process for acting on structural shifts before they become consensus.
Best,
Ryan Austin
Founder, Arondight Advisors