Dianna Raedle, Founder and CEOAfter witnessing a shift in the capital markets space — with the maturing of the private capital markets, alternative investment products and institutional capital provider capabilities which include preferring proprietary transaction flow or direct access to capital seekers — Deer Isle Group has updated its intermediary model to address current market conditions. It has evolved from a one-size-fits-all advisory approach which is currently the default business model of most capital intermediaries and embraced a more customizable, transparent, and cost-effective method to provide capital seekers and capital providers with the tools necessary to succeed in the new environment.
One main capital provider benefit of the Deer Isle model is that it allows providers to establish and maintain direct relationships with capital seekers rather than only engaging in isolated transactions. Providers gain insights into a capital seeker's identity, business activities, and trajectory through ongoing communication.
Deer Isle Group’s revamped intermediary model adapts to market changes, leveraging three key building blocks of successful institutional capital market engagement: 1) “Institutional Preparation”, 2) a FINTECH solution that enables “Direct Issuance or Transaction Sourcing” and “Building a Top of Capital Funnel”, and 3) “Closing”.
Deer Isle’s definition of “institutional” is capital providers who are fiduciaries so capital providers where there is an approval process prior to any capital decisions and it includes family offices, wealth advisors, funds of all kinds such as private equity, venture and credit as well as pension funds, endowments and foundations.
Each of Deer Isle’s services is offered on a stand-alone and “as needed” basis which makes the Deer Isle model transparent and effective. Only engage for those services that are beneficial to a capital process.
Deer Isle Group encourages early preparation and continuous market engagement for capital, transaction pipeline and investor relations, to help ensure capital transaction success. This continuous capital market engagement builds virtual relationships, refines the capital proposition over time creating and raising brand recognition and culminating in transaction success. Brand matters in capital markets just like in most other markets. Deer Isle’s transparent approach clarifies the roles of intermediaries, enhancing client satisfaction and transaction success rates.
Institutional Preparation
Deer Isle’s Strategic Capital ConsultingTM services (“SCC”) help prepare a capital opportunity from an organization’s business strategy in order to help ensure a smooth and successful transaction outcome.
These consulting services are offered through the Deer Isle 10 step Bootcamp, an abbreviated Bootcamp Sprint, or on a Bespoke basis.
The Bootcamp helps organizations think strategically about their transaction proposition through a 4 Pillar Capital Analysis Framework: qualitative positioning, quantitative forecasting, opportunity support, and capital markets landscape.
The bootcamp provides a self-assessment framework along with worksheets, checklists, and templates to streamline preparation and ensure that the final transaction opportunity is well defined, fits the organization’s strategic objectives and has clear institutional quality materials as well as due diligence support.
An example of the power of the Deer Isle Executive Management Bootcamp is when a billion-dollar organization explored expanding into a new product line. The clear and concrete Bootcamp process allowed them to have strategic conversations about growth plans and capital needs, which helped them create an institutional capital opportunity and supported their transaction’s success.
D.I.G. Beacon: Proprietary FINTECH solution for Direct Issuance or Transaction Sourcing
Deer Isle’s D.I.G. Beacon, proprietary FINTECH solution makes direct issuance or transaction sourcing including building a top of capital funnel efficient, cost effective and successful. Within approx. 2 weeks of engagement, directly communicate with relevant potential transaction parties.
A white-label and turnkey solution, D.I.G. Beacon enables direct contact between companies seeking capital or transactions and a relevant and curated subset from a universe of over 10,000 institutional capital providing organizations based in the United States.
The Beacon solution emphasizes direct capital market messaging, which is seen from the recipients’ viewpoint as a proprietary communication which increases the likelihood of positive responses from recipients.
The solution also handles all the data management, processing, and reporting, offering organization-level insights crucial for effective capital markets engagement.
“We have structured our process to be transparent, efficient, and adaptable, catering to a broad range of companies seeking capital market engagement. We empower capital seekers and capital providers to navigate the market effectively, create direct capital connections, build lasting capital relationships and, importantly complete successful capital transactions” says Dianna Raedle, founder and CEO.
An example of the power of the D.I.G. Beacon solution is a private equity-backed company sought capital and initially reached out to close relationships without gaining traction. This company received 12 positive funding interest responses including requests to enter the company’s data room from its first email campaign.
While Deer Isle was not ultimately hired for closing activities, this example shows how its modular toolkit can efficiently generate initial investor interest, and, if desired, the client can manage subsequent process steps independently or engage Deer Isle's broker-dealer practice for Closing Advisory.
Closing Advisory
Deer Isle’s focus on closing is an important part of its services. Under the Closing Advisory service, Deer Isle’s strengths include an emphasis on the iterative nature of closing and the importance of understanding transaction dynamics:
•Relationship Management: Understand each parties goals and objectives,
•Due Diligence Management: Real-time responses to transaction roadblocks and questions
•Transaction Management: Focus on obtaining the best outcomes and terms based upon deep closing experience.
Under its closing services, Deer Isle Capital has successfully closed over $5 billion in capital transactions. These are in a wide range of industries and sizes including facilitating an insurance company purchasing a $30 million captive insurance company.
As investors and companies shift toward more tailored connections, Deer Isle Group stands at the forefront, using its technology, methodologies, and expertise to facilitate enduring partnerships. By enabling fluent communication between providers and seekers, it builds firm foundations supporting clients in effectively raising capital and sourcing transactions amid transformed markets.
