• Mark Flickinger combines his engineering background with investment expertise to support both business owners and high-net-worth investors.
• Private markets have grown in importance as alternatives, moving beyond hedge funds to include a wide range of private companies.
• Value creation that once happened in small-cap public stocks is now largely occurring in private companies.
• Only one out of ten U.S.-based companies with $100 million or more in revenue is public, leaving most growth in private markets.
• Entrepreneurs increasingly stay private due to regulatory burdens and the ability to grow without going public.
• Business development companies (BDCs) were created to simplify private market investing for U.S.-based companies and investors.
• Entrepreneurs are increasingly using a hybrid approach of equity and debt to raise capital without overly diluting ownership.
• Taking on a partner or investor is worthwhile if they bring expertise and add significant value to the business.
• Debt can be advantageous if the business grows faster than the interest cost, making leverage an effective tool.
• Capital should be taken strategically to overcome growth hurdles, not just for the sake of raising funds.
• Many business owners excel in specific phases of growth and benefit from focusing on their strengths rather than the CEO role.
• The private credit market is likely to expand further, while banks continue to reduce direct lending to businesses.
• A robust AI plan is now a key factor in evaluating a company’s long-term potential, beyond just naming conventions.