Inputs & Outputs: What Sponsor Coverage Data Should Investment Banks Be Tracking?

Gone are the days of the simple “buyer, seller, advisor” deal. The beauty pageants seem never-ending: after competing with potentially dozens of other intermediaries (including CPAs, Main Street brokers, lawyers, etc.) to win an engagement, bankers are tasked with navigating the vast investor/buyer pool. To make matters even more complicated, new sponsors enter the market each and every day.

An investment bankers’ day-to-day tasks tend to be manual and time-intensive (e.g. emails, phone calls, meetings, road shows, conferences, etc.). This makes investment bankers the target of constant investor phone calls and “check-ins,” and a priority meeting for buyers while at conferences.

So how can investment bankers and M&A advisors make sense of the chaos? We’ve teamed up with Sutton Place Strategies to analyze the meaning of “true market coverage” in 2019 and beyond, as well as how firms can better track market coverage in their CRM. Read on to learn more about our recommendations based on your firm’s unique coverage model.o

For those with a tried-and-true sponsor coverage model:

Today’s top firms, when compiling the initial list of acquirers, are looking at both proprietary and third-party data to not only structure their day-to-day dealmaking activity but to bring meaning to their conversations with sponsors. Below are a couple tips for how to elevate your sponsor coverage even further from where it is now: Track how many and which private equity firms were active on the buy- or sell-side over the last year. Not only will this help you see patterns that can help you better understand their investment thesis, but you’ll be better prepared with the data you need for touch-base phone calls and meetings. Below are the most active sponsors in Q1 2019 as per the SPS data.

  • Track how many and which private equity firms were active on the buy- or sell-side over the last year. Not only will this help you see patterns that can help you better understand their investment thesis, but you’ll be better prepared with the data you need for touch-base phone calls and meetings. Below are the most active sponsors in Q1 2019 as per the SPS data.
  • Set up alerts and notifications that power your business development engine. Are you receiving alerts when a private equity portfolio company has been held for 3+ plus years? This, for example, signals that the company may be coming for exit in the years ahead – and your firm will want to be ready to support the exit diligence and negotiations.

For those without a defined sponsor coverage model:

Holistic sponsor coverage is the pursuit of complete understanding of the universe of buyers that exist not only for a particular deal, but for every deal that your firm could potentially intermediate. If your firm is just getting started with defining a sponsor coverage model, we recommend the following:

  • Start to catalog and keep record of each buyer’s preferences and past behavior (i.e. closed deals, size and industry preferences, deals they passed on, etc.). This information, when entered into your CRM, will become a home-grown database that you can use to speed up buy list creation in the future. It can also help win new client engagements and establish credibility amongst CEOs.
  • Start to track “warm” leads through referral sources such as attorneys, lenders, etc. The better data you have around your “at bat” opportunities, the more strategically you’ll be able to apply your business development budget towards each firm. With Sutton Place Strategies’ data integrated into DealCoud, you have the entire M&A and private equity ecosystem of potential referral sources right at your fingertips, all organized based on your preferences and filters such as size, sector, geography, etc.

If you’re working in sponsor coverage at an investment bank and are lacking the data and analytics tools you need to drive efficient business development, reach out to our team. We help hundreds of firms streamline their processes and close more deals.

Blue River Financial Deploys DealCloud

Blue River Financial Group (“Blue River”), a middle market merger and acquisition advisory firm, has deployed DealCloud.

“Blue River has decided to deploy DealCloud to have clear and instant visibility on our data. Allowing us to set up processes which track the success of our deals in a coherent way of both buy-side and sell-side,” says Bryan Berent, Managing Partner at Blue River. “We have been able to streamline our outreach while setting up appropriate notifications allowing the team to work in an even more efficient manner.”

Blue River has deep experience in representing buy-side and sell-side clients, spanning a broad array of industries, such as health services, medical devices, information technology, oil & gas services, energy management, business services, manufacturing, defense, education, forestry, wholesale, and more.

“Today’s middle market M&A advisors need a full and transparent view of the sponsor market, and require smart technology solutions to help them grow and maintain relationships,” says Ben Harrison, DealCloud’s Chief Revenue Officer. “We’re proud to help the Blue River team ensure the best possible outcomes for their clients and look forward to seeing their continued growth.”

About Blue River Financial Group

Blue River places a premium on relationship-centered transaction counsel and client support. We provide a suite of services to middle-market clients including corporate development, private equity support, confidential sell-side representation, valuations and transaction consulting. For more information, visit www.goblueriver.com.

About DealCloud

DealCloud, an Intapp company, provides a single-source deal, relationship, and fund management platform to enable over 600 clients to power their deal-making process from strategy to origination to execution. We offer fully configurable solutions purpose-built for the complex relationships and structures of private equity and growth capital firms, investment banks, private and publicly traded companies, debt capital providers, and other investors. For more information, visit www.dealcloud.com.

DealCloud Differentiator: “Work on Behalf of”

Constant traveling and days filled with meetings have long plagued the private equity, investment banking, corporate development, and lending industries. When face time is high, screen time tends to be low… and the first thing that falls by the way-side is updating and maintaining records in your CRM. Luckily, that intellectual capital can now be captured in your CRM platform – even if you didn’t submit it yourself.

In our continued pursuit of providing the most easily configurable CRM platform on the market, we’ve developed new a functionality called “Work on Behalf of.” This makes it possible for users to execute on work within the DealCloud platform on behalf of someone else. This is especially useful for users who have team members – such as interns or administrative assistants – assist with work.

Now, not just anyone can do work on behalf on another person. The first step in enabling this functionality is to specify which proxy users are eligible to switch to another user’s profile and do work on their behalf in DealCloud.

Switch to another user’s profile in order to work on behalf of them.

When logged into DealCloud under another user’s profile, the proxy will have the same capabilities, read/write access, dashboards, views, document access, etc. as the user they are working on behalf of. So, when selecting a proxy user, be sure to consider all matters of confidentiality and sensitivity.

While working on behalf of another user, the blue bar seen above will be displayed in the top-right corner of the DealCloud platform screen.

Additionally, any changes (creations, edits, deletions) made by the proxy will be attributed to the user they are working on behalf of (the ‘Modified By’ / ‘Created By’ fields will show the user’s name, instead of the proxy’s name). This is particularly useful to teams because they won’t see any difference between information entered by the proxy or information entered by the user him/herself.

If a log of every change / entry submitted by a proxy is desired, that can be easily accessible from the the Data Audit and Revert Changes grid. Users will now see a column called ‘Proxy.’ This column will display the proxy’s name beside any and all changes that the proxy made while working on behalf of another user. Proxy users can leverage this log as a quick summary and confirmation of the work that was completed, and can be reviewed/approved by the user they are working on behalf of.

Logging work on behalf of another user is also easy to do through the Outlook add in.

Having “Work on Behalf of” functionality enables members of your team to work together and lean on each other for support with more ease. This level of flexibility is unseen in many CRM platforms, but is now available to all DealCloud clients.

Want to see more or learn about other DealCloud Differentiators? Get in touch with the DealCloud team and we’ll be happy to help.

The Raine Group Chooses DealCloud

Jersey City, NJ | April 1, 2019: DealCloud, a single-source deal, relationship, and fund management platform, today announces that The Raine Group, a global merchant bank focused exclusively on technology, media and telecommunications, has chosen to deploy DealCloud. The Raine Group has offices in New York, San Francisco, Los Angeles, London, Shanghai, and Mumbai.

DealCloud’s technology was purpose-built to handle the complexities of deals and relationships in the capital markets. The platform allows deal professionals to manage every stage of a transaction including management and operational teams, debt providers, and sponsors, in addition to due diligence, legal, and fundraising processes. This enables merchant bankers, investment bankers, and M&A advisors to more easily manage deal pipelines, more efficiently leverage institutional knowledge, and drive positive outcomes for clients.

“The Raine Group is an extremely successful investor and advisor in the technology industry, so we’re honored to have our technology chosen as the backbone for their strategy,” says Ben Harrison, DealCloud’s Chief Revenue Officer. “From M&A, to private capital raising, strategic advisory, growth equity, venture capital, and public market investing – the team at Raine is doing it all – and we’re proud that our technology solutions are uniquely positioned to address all of their needs.”

About DealCloud
DealCloud, an Intapp company, provides a single-source deal, relationship, and fund management platform to enable over 600 clients to power their deal-making process from strategy to origination to execution. We offer fully configurable solutions purpose-built for the complex relationships and structures of private equity and growth capital firms, investment banks, private and publicly traded companies, debt capital providers, and other investors. For more information, visit www.dealcloud.com.

Brentwood Associates Deploys DealCloud

Brentwood Associates, a leading consumer-focused private equity investment firm with a 30-year history of investing in leading middle-market growth companies, has deployed DealCloud.

“We were diligent when selecting an information solution to power the future of deal origination and execution for Brentwood,” says Craig Milius, Managing Director at Brentwood Associates. “In the end, only DealCloud provided the data flexibility and interactive capabilities we felt would drive clarity and productivity throughout our business.”

Brentwood invests in growth companies focused on transformational customer experiences where it is able to leverage its extensive experience in categories such as: education; food & beverage; lifestyle brands; retail and specialty distribution; and technology enabled business services.

“Given the competitive nature of deal-making today, it’s critical that relationship management be a core focus for every firm,” says Ben Harrison, DealCloud’s Chief Revenue Officer. “We’re proud to provide the Brentwood team with an enterprise-grade technology solution that will help them institutionalize their unique, market-leading strategies.”


About Brentwood Associates

Brentwood Associates is a leading middle-market private equity investment firm with a 30+ year history of partnering with exceptional leadership teams creating transformative customer experiences. Since 1984, Brentwood’s dedicated private equity team has invested in over 50 portfolio companies with an aggregate transaction value of over $6 billion. With significant experience in both investing and brand building, Brentwood is a value-added partner with entrepreneurs and senior management teams building world-class companies. For more information about Brentwood, please visit www.brentwood.com.

About DealCloud

DealCloud, an Intapp company, provides a single-source deal, relationship, and fund management platform to enable over 600 clients to power their deal-making process from strategy to origination to execution. We offer fully configurable solutions purpose-built for the complex relationships and structures of private equity and growth capital firms, investment banks, private and publicly traded companies, debt capital providers, and other investors. For more information, visit www.dealcloud.com.

African Capital Investments (ACI) Deploys DealCloud

African Capital Investments (ACI), an independent corporate advisory boutique focused on providing access to proprietary African investment opportunities, has deployed DealCloud. ACI was established to capitalise and contribute on the emergence of the African consumer class driven by strong economic growth, demographic trends and urbanisation. The ACI team is made up of industry professionals who understand local markets and have backgrounds in private equity, corporate finance, M&A, strategic advisory, and portfolio management.

ACI is headquartered in London and its operations are supported by an international network of sector-specific advisors and consultants. ACI is in direct contact with, or is one degree of separation from, key decision makers in both the private and public sector across the African continent.

“From the first demo it was clear to us that DealCloud would enhance our business. Unlike other technology providers, DealCloud is tailored to the financial services industry and provides a seamless CRM, project management and operational KPI monitoring platform,” says Gianpaolo Pera, CEO and Co-Founder of ACI. “DealCloud has driven efficiencies in our business as our investor communications, deal and regulatory processes are now fully integrated on one platform.”

“The ACI team is processing a high volume of deal flow and has closed transaction across 17 African countries,” says Ben Harrison, DealCloud’s Chief Revenue Officer. “We’re proud to provide them with a centralized deal and relationship management platform that helps them drive the best possible outcomes in each of their engagements.”

About African Capital Investments
ACI is an independent corporate advisory boutique focused on providing access to proprietary African investment opportunities. ACI specialises in Deal Origination, Corporate Advisory and Capital Raising in the mid-cap and large-cap sector in Africa. ACI has successfully concluded transactions across a wide range of industry sectors and geographies and has an extensive track-record in supporting and securing foreign investment into Africa. ACI is Authorised and Regulated by the Financial Conduct Authority (“FCA”), with a FCA registration number 706522. ACI is an authorised Financial Services Provider (“FSP”) in South Africa and is regulated by the Financial Services Board (“FSB”), with FSP number 47979. For more information, please visit: www.aci.africa

About DealCloud
DealCloud, an Intapp company, provides a single-source deal, relationship, and fund management platform to enable over 600 clients to power their deal-making process from strategy to origination to execution. We offer fully configurable solutions purpose-built for the complex relationships and structures of private equity and growth capital firms, investment banks, private and publicly traded companies, debt capital providers, and other investors. For more information, visit www.dealcloud.com.