Chris Felderman

Yeah, I think it's especially important for private equity-backed portfolio companies that, you know, whether they're purchasing raw materials on an import basis or whether they are, you know, manufacturing overseas and need to bring that product back to the back state side. I think now is a time to really assess what the costs of those imports are doing. And I think

Our sense is that these announcements, and generally speaking, the uncertainty around them is absolutely increasing challenges for PE firms. And it's not only in the operations of their portfolio companies, but it's also in their ability to source, evaluate, and ultimately close on those new investment opportunities. And I can

Our sense is that these announcements, and generally speaking, the uncertainty around them is absolutely increasing challenges for PE firms. And it's not only in the operations of their portfolio companies, but it's also in their ability to source, evaluate, and ultimately close on those new investment opportunities. And I can

Our sense is that these announcements, and generally speaking, the uncertainty around them is absolutely increasing challenges for PE firms. And it's not only in the operations of their portfolio companies, but it's also in their ability to source, evaluate, and ultimately close on those new investment opportunities. And I can

go into some detail on some of the short-term risks and opportunities that they can look into, and then maybe some of the long-term as well.

go into some detail on some of the short-term risks and opportunities that they can look into, and then maybe some of the long-term as well.

go into some detail on some of the short-term risks and opportunities that they can look into, and then maybe some of the long-term as well.

Yeah, in terms of the shorter term challenges, I think immediate term, portfolio companies, their management teams, even the deal teams that are working on them on the sponsor side, they really need to identify the product and supply chain exposure that each of their portfolio companies have, meaning what key costs either are affected or are going to be affected by current or pending tariffs.

Yeah, in terms of the shorter term challenges, I think immediate term, portfolio companies, their management teams, even the deal teams that are working on them on the sponsor side, they really need to identify the product and supply chain exposure that each of their portfolio companies have, meaning what key costs either are affected or are going to be affected by current or pending tariffs.

Yeah, in terms of the shorter term challenges, I think immediate term, portfolio companies, their management teams, even the deal teams that are working on them on the sponsor side, they really need to identify the product and supply chain exposure that each of their portfolio companies have, meaning what key costs either are affected or are going to be affected by current or pending tariffs.

Maybe they manufacture goods in another country, maybe they import raw materials for production here in the US. Once they understand that, they then need to assess the effect of the cost increases on both profitability and liquidity. How much inventory can the company pre-buy Or how much of any cost increases can it absorb before having to pass some of those costs along to its customers?

Maybe they manufacture goods in another country, maybe they import raw materials for production here in the US. Once they understand that, they then need to assess the effect of the cost increases on both profitability and liquidity. How much inventory can the company pre-buy Or how much of any cost increases can it absorb before having to pass some of those costs along to its customers?

Maybe they manufacture goods in another country, maybe they import raw materials for production here in the US. Once they understand that, they then need to assess the effect of the cost increases on both profitability and liquidity. How much inventory can the company pre-buy Or how much of any cost increases can it absorb before having to pass some of those costs along to its customers?

And how sensitive will the customer base be to those increases? Or are they able to negotiate something mutually beneficial with their vendors to help preserve their margins? And in the case of pre-buying inventory to avoid any short-term tariffs, what are the downstream effects of tying up working capital in that way?

And how sensitive will the customer base be to those increases? Or are they able to negotiate something mutually beneficial with their vendors to help preserve their margins? And in the case of pre-buying inventory to avoid any short-term tariffs, what are the downstream effects of tying up working capital in that way?

And how sensitive will the customer base be to those increases? Or are they able to negotiate something mutually beneficial with their vendors to help preserve their margins? And in the case of pre-buying inventory to avoid any short-term tariffs, what are the downstream effects of tying up working capital in that way?

I think those are some of the key immediate and short-term assessments that need to be made. And then over the longer term, it's perhaps assessing things like the ability to move suppliers or whether products can be redesigned with components that don't have as much exposure to tariffs. But obviously, those take a little bit longer to play out.

I think those are some of the key immediate and short-term assessments that need to be made. And then over the longer term, it's perhaps assessing things like the ability to move suppliers or whether products can be redesigned with components that don't have as much exposure to tariffs. But obviously, those take a little bit longer to play out.

I think those are some of the key immediate and short-term assessments that need to be made. And then over the longer term, it's perhaps assessing things like the ability to move suppliers or whether products can be redesigned with components that don't have as much exposure to tariffs. But obviously, those take a little bit longer to play out.

And given the uncertainty right now, it might not be necessary, but it's something that can absolutely be planned for for the longer term.