Software Predictions for 2024
Bruce Fenton was quoted in the December 21, 2023 SD Times article, " Software Predictions for 2024."
Equity investments will have a heightened emphasis on quality. Remember that coming out of the pandemic were two of the busiest years on record for the industry in 2021-22, so while there's been a pronounced drop-off this year, it hasn't been so bad from a historical perspective. You'll notice that it's mostly A-grade or B+ assets being sold, even though there may be a lot of investment opportunity beneath those grades. Sponsors and corporate players will continue to come in from the sidelines in the new year. There is plenty of dry powder – many billions of dollars of pent-up capital to deploy. Experienced investors will remember how to do deals in a high-interest environment, including putting more equity into their portfolios, given the heavy cost of borrowed funds.