Ryan Van Wagenen Overviews Buy Side Investing Going Forward

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Ryan Van Wagenen Buy Side Investing

This year, the buy side will be facing a host of changes as the combination of new regulation, technological advances, and geopolitical uncertainties influence the investment landscape. Ryan Van Wagenen of Global Private Equity notes that these changes relate to one another due to the past year’s constant ongoing challenge as a result of low yields. The hunt for more yield has lead many investment managers to think about new and alternative approaches, even exploring unfamiliar territories.

Performance of Global Capital Markets

The global capital markets have now resumed growth after the 2008 and 2009 severe financial crisis. In 2010, global financial stock which includes both debt and equity outstanding was approximately $11 trillion. According to new consensus data, that figure is now closer to $212 trillion. This number was high above the peak level in 2007. The global financial stock’s increase is likely because of the global equity market’s increase in 2009 and 2010. In addition, there has been drastic growth in government debt securities’ over that time period.

The growth of emerging countries’ capital market is likely to stay strong with their long-term fundamentals still looking firm.

However, markets are still upset by the global volatility and uncertainty. These factors are also the industry’s key risks in the years ahead. There are three core types of players in the global capital markets, one of which is the buy-side firms. Buy side investing continues to move forward with new trends that have been built over the past few years. As the growth continues, buy side investing could make 2018 one of the most lucrative years in the business.

Ryan Van Wagenen Buy Side M&A Process
Ryan Van Wagenen has been involved in international private equity for nearly a decade and is involved frequently in the Buy Side M&A Process.

Buy Side Trends that Will Affect the Global Financial Markets

Increased Regulatory Pressure

This 2018, buy-side investing‘s asset managers will face significantly increased compliance burden. This will occur with the introduction of Europe’s Market Abuse Regulation, as well as the MiFID II. The impact of these regulations is that firms begin to apply to their jurisdictions the strictest standards. Moreover, the investors of the buy-side investing industry will want proof from firms that they have control and systems that could ensure the detection and prevention of market abuse.

Gatekeepers’ Analysis Will Have More Influence

The last decade showed the buy side firms use consulting firms in auditing their processes, as well as rating investors. Around that time, these firms or gatekeepers provide analysis with a focus on performance as well as classification of financial strategy. Nowadays, however, the industry demands more pervasive transparency. For that, the gatekeeper’s analysis now exerts more impact by being more data-driven and focusing on all aspects of the business.

Out-Sourcing Core Processes and Leveraging Outside Expertise

One of the trends that buy-side firms will be adopting more in 2018 is the outsourcing of the company’s core processes. This, in addition to compliance, back office, and risk processes will help companies become more cost-effective. With digital technology influencing the financial industry, buy side investing will also begin to take advantage of advanced technology. Two examples that many firms are looking to implement are user behavioral analytics and machine learning. Buy-side firms will be utilizing outside expertise as well.

These buy-side investing trends mean that firms need to be more proactive. Main areas to improve are regarding the rules and regulations on trading as well as market manipulation. Automation of processes, especially surveillance, also trends to empower analysts and regulators. Additionally, these processes provide the firm with the advantage of cost-effectiveness as well.

Ryan Van Wagenen on the Typical M&A Process for Global Private Equity

When discussing the typical M&A process, Ryan Van Wagenen quickly explained that there is no standard process and that it really depends upon the sophistication of the seller and those they have hired to run their process. The time frame of the process can last anywhere from a few months to a number of years depending on how rigorous the process.

Basic Overview of the M&A Process
  • Dialogue Starts Between the Buyer and the Seller
  • Both Parties Strategically Approach the Subject of the Transaction
  • Line of Communication Always Kept Open
  • Discuss Seller Retention and Possibly Future Exit Plan
  • Disclose Financial and Operational Overviews of the Business
  • Sign Letter of Intent
  • Commence Due Diligence Process
  • Closing of the Transaction

 

Ryan Van Wagenen M&A Process
Ryan Van Wagenen overviews the typical M&A buyside process for deals with Global Private Equity.

Visual Overview of the M&A Process

In addition, below is a great overview of the buy side M&A process by the Wharton Business School.  This is a great overview of the process and due diligence that private equity firms such as Global Private Equity go through when looking to close an M&A transaction.

Please Share Your Experience and Feedback with Us

What has your experience been in the M&A buy side process? Please let us know your opinions on the industry. Regardless of which side of the business you are on, please let us know your thoughts. The experience of those on the buy side, sell side, and those interested in the market is helpful. We’ll also answer any questions that are asked below.

Ryan Van Wagenen Global Private Equity
Ryan Van Wagenen of Global Private Equity explains the process of buy side investing.
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Ryan Van Wagenen currently resides in Cottonwood Heights and is an American financier that is focused in Private Equity. Since 2009, he has worked at Global Private Equity. Global Private Equity is an international firm focused on private equity. In 2011, he was promoted to Director within the firm. With this move came a shift in coverage to the technology sector. Since becoming a Director at Global Private Equity, Ryan Van Wagenen now has been put in charge of the origination process. In recent years, he has also been given the responsibility of co-managing GPEs deal relationships between the London team and those in the US. Before Global Private Equity, Van Wagenen worked in the operations team at Citi Trends from 2006 to 2009. This job within the operations of a large corporate consisted of being responsible for data entry, accounts payable, payroll, grant report entry, creating organizational and program budgets in collaboration with the firm's executive director. Citi Trends ("CTRN" Nasdaq) is an American retail clothing chain that is headquartered in Savannah, Georgia. Ryan Van Wagenen is an alumnus of Westminster College where he graduated cum laude with a Bachelor of Science in Finance. He is the youngest of five children. Being that he was the last born in the Van Wagenen family, his older siblings, especially his two oldest brothers, made sure he always lived life to the fullest. Ryan credits this to many broken bones and two near death experiences. Even with these memories, he is still active in the Utah outdoor community and is an avid backcountry skier, mountaineering racer, hiker, rock climber, and mountain biker. Behind all the accomplishments is a caring person that is focused on giving back in the local community.

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