Matt Wolf

I mean, we understand that just the nature of business has become more complicated. Consumer demands have become more, significantly more complicated and managing all that finding and creating and expanding a niche to add value in the sort of global marketplaces has really become complicated.

And so I don't think the direction should surprise anybody, but, but certainly the magnitude nine times more complicated to manage these businesses. And I think for, for sponsors and management teams working to, to navigate that complexity, um,

And so I don't think the direction should surprise anybody, but, but certainly the magnitude nine times more complicated to manage these businesses. And I think for, for sponsors and management teams working to, to navigate that complexity, um,

is going to be really tough right we talk a lot about how you know with the the increased cost of capital we don't really have the margin for error for for making you know sub-optimal capital allocation decisions of you know companies to buy systems to implement processes to improve we got to really be dead on from that perspective and it's just more complicated to make those decisions now nine times more complicated to manage supply chains

is going to be really tough right we talk a lot about how you know with the the increased cost of capital we don't really have the margin for error for for making you know sub-optimal capital allocation decisions of you know companies to buy systems to implement processes to improve we got to really be dead on from that perspective and it's just more complicated to make those decisions now nine times more complicated to manage supply chains

And the other element of that is who's going to do it, right? I mean, not only is the actual sort of knowledge kind of capped, right? There's only so many people who have years or decades of experience in a given industry. You know, unemployment remains around 4%. The labor force participation rate is really high. So as we try to add value and execute on this, we can't

And the other element of that is who's going to do it, right? I mean, not only is the actual sort of knowledge kind of capped, right? There's only so many people who have years or decades of experience in a given industry. You know, unemployment remains around 4%. The labor force participation rate is really high. So as we try to add value and execute on this, we can't

can't always find the exact sort of human resources and talents that we're looking for to navigate this. And we're going to have to turn to more technology, artificial intelligence to help just help make sense of this increasing complexity. So again, the first tidbit of that is up on the Real Economy RSM blog.

can't always find the exact sort of human resources and talents that we're looking for to navigate this. And we're going to have to turn to more technology, artificial intelligence to help just help make sense of this increasing complexity. So again, the first tidbit of that is up on the Real Economy RSM blog.

And we're continuing to dive into various measures of complexity of managing middle market businesses. But the research so far has been fascinating. And as I said, I don't think directionally it will really surprised many people, but certainly the magnitude surprised me. Nine times more complicated to manage supply chains now for middle market businesses across industries than it was 15 years ago.

And we're continuing to dive into various measures of complexity of managing middle market businesses. But the research so far has been fascinating. And as I said, I don't think directionally it will really surprised many people, but certainly the magnitude surprised me. Nine times more complicated to manage supply chains now for middle market businesses across industries than it was 15 years ago.

So an absolutely An absolute increase. Pretty staggering stuff. And I think, you know, in those challenges, certainly will come opportunities, right? And we've seen sponsors narrow their investment thesis, find those right operating partners, really focus on where they can drive value in navigating that complexity.

So an absolutely An absolute increase. Pretty staggering stuff. And I think, you know, in those challenges, certainly will come opportunities, right? And we've seen sponsors narrow their investment thesis, find those right operating partners, really focus on where they can drive value in navigating that complexity.

And I'm confident that they'll be able to deliver outsized returns for their LPs if they're able to execute on that. So, Changing environment as always. And this latest little tidbit of research I think is really worth checking out for anybody interested.

And I'm confident that they'll be able to deliver outsized returns for their LPs if they're able to execute on that. So, Changing environment as always. And this latest little tidbit of research I think is really worth checking out for anybody interested.

Thank you.

Thank you.

Yeah, thanks, Scott. You know, the exit environment, we expect it to be very busy this year, we and others, right? You know, portfolio companies have been held for too long by most funds. We've seen, you know, NAV loans, continuation vehicles, other things like that sort of on the periphery.

Yeah, thanks, Scott. You know, the exit environment, we expect it to be very busy this year, we and others, right? You know, portfolio companies have been held for too long by most funds. We've seen, you know, NAV loans, continuation vehicles, other things like that sort of on the periphery.

But by and large, there's a significant amount of assets that we expect to be traded hands this year because the sponsors need to focus on new investments. And yeah, they're not... That 20% cut of the carry on exit, they've been holding out, hoping for multiples to return, for financing to get better, closer to what it was in 2021. It's just not going to happen.