Introduction

• Serving privately held companies in emerging growth and lowermiddle market ($10 – $100 million revenue / $2 – $8 million EBITDA)

• Senior team of financial professionals with experience in M&A, private placements and operating roles in PE and VC backed companies
• Strong domain expertise in target sectors and connectivity with senior management and boards of established and emerging market leaders, and their financial sponsors

Industry Focus and Expertise

Recent Software & Technology Transactions

Current Software & Technology Mandates

Quantum Technology (Growth Financing / M&A)

• Emerging leader in quantum networking with near term completion of first commercially available quantum network in the U.S. Fully integrated quantum networking technology stack and industry leading patent portfolio. Status: Active.

Cybersecurity – SOCaaS (Sell-side M&A)

• Advanced cloud-based cybersecurity SOC As-a-Service platform with XDR+ solutions based on an advanced cross-correlation engine with autonomous response that incorporates multi-source security telemetry. Status: On Hold.

Selected Prior Software & Technology Transactions

Public Markets Trading Analysis: Software

Public Markets: High v Med/Low Growth Software

Public Equity X: High v Med/Low Growth Software

Growth AND Profitability Drives Higher Values

Global Software M&A – Q # Deals Bounced Back

• Q1 2023 deal count was 17% lower than Q1 2022 peak however, 23% up from Q42022, 18% higher than 2019-Q1 2023 Avg. (511), with only 3 previous quarters higher

Global Software M&A Multiples

• Growth in PE Software Co. platform buyers and increase in take-private transactionsdrive PE Deal X to exceed /converge toward pure public/private strategic acquirers
• Strategics more selective on higher multiple assets driven by lower public valuations

Application Software M&A Trends

• In 2022 ERP (including HR applications), Vertical Market applications and Business Intelligence applications were the strongest segments, showing solid growth in deal volume over 2021

Cloud Economy and SaaS Investor Trends

• Bessemer’s Sentiment Score measures investor enthusiasm across the cloud ecosystem – ERP and Vertical Market apps scored highest in Q1 2023
• Investors were even more enthusiastic about artificial intelligence and machine learning – for both AI native businesses and SaaS Applications

Software M&A Outlook is Positive

• While Tech M&A dropped sharply in late 2022, dealmakers see business picking back up in 2023, according to 451 Research’s annual M&A Outlook Survey
• Software and Information Security segments are expected to receive the largest increase in M&A spending in 2023

US PE Growth Activity

• Growth equity deal count in 2022 is estimated to exceed 2021 by as much as 10%, in contrast to the overall downtrend in PE transaction volume
• Growth equity’s share of total deals was 19.7% in 2022, up from 17.5% in 2021

Growth Equity and VC Fundraising Still Trends Up

• Global Growth Equity (+8%) and VC Funds (+11%) Continue to Raise Capital at Levels Higher than the 2017 – 2021 Average

Global Private Capital Fundraising ($ Billions)

US Private Equity Fund Raising

• New fund raising took a step back in Q4 2022 as a majority of institutional LPs had fully allocated capital by the end of Q3
• 2023 deployment and fundraising cycles will likely revert to more recent historical norms given an unsustainable pace in 2021

US Private Equity Fundraising

US PE Middle Market and Growth Fund Raising

• Growth Equity and Middle Market funds continue as key assets classes
• Total New PE Fund Count in 2022: Growth Equity share was 18.8% (consistent with 2017 – 2021 average = 19.2%) whereas Middle Market was up to 48% (2017 – 2021 average = 39%)