Deal Origination Best Practices

With nearly 20 years of experience in banking and finance, Jacinto Solivellas de Oleza serves as a partner and senior board advisor for the international firm Olesis Management. With a book topping $1 billion in value, Jacinto Solivellas de Oleza focuses on investments of $100 million or more.

Deal origination serves as the starting point for all private equity and other investment transactions. Finance professionals with expertise in this area often prove adept at envisioning a deal from start to finish. They recognize the potential for strong financial returns in specific investments, understand the need for capital and its best use, and capably assess income capacity and likely exit strategies. In fact, the current credit environment continues to spur companies to place more emphasis on deal origination, including scouting deals, courting clients, and marketing strengths and capabilities.

While in the past some organizations relied heavily on outside sources for deal origination, recent studies indicate that firms that integrate internal origination specialists and external origination consultants provide optimal benefits for the company and its clients. Venture and private equity firms with in-house origination principals and programs tend to generate robust performance across the board. These teams actively explore the capital markets for possible transactions rather than managing deals at the same time, giving them the focus they need to maintain a strong pipeline for other departments. Moreover, external consultants often attract a larger number of qualified investors to a deal because their client list extends beyond that of a single firm.

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