Farao Solutions

There are now more than 12,899 US private equity-backed companies waiting for an exit. At the current pace, this translates to 7.7 years of inventory sitting in funds, down slightly from roughly 8.5 years last quarter. While exit value has fallen for three consecutive quarters, exit count is finally rising, hinting that the pipeline is beginning to unclog. This imbalance is both a problem and an opportunity. For fund managers, longer holding periods mean slower distributions and pressure on fundraising cycles. For acquirers, it means a growing pool of mature, well-run businesses quietly approaching liquidity need. At Farao, we help investors anticipate these opportunities. Our workflows track funds to flag portfolio companies statistically nearing exit. By layering this data with external signals, we help buyers engage with owners as early as possible. In a market still defined by patience, the edge belongs to the proactive. #DealOrigination #Exits #PrivateEquity #InvestmentStrategy #CorporateDevelopment #FaraoSolutions #PitchBook

According to PitchBook, 74% of all buyout activity in Q3 2025 came from add-on acquisitions, slightly above the five-year average. As platform investments become harder to close, investors are scaling through add-ons to unlock operational synergies, cost control, and incremental value creation. For GPs, this strategy offers more than growth. It provides control. By expanding within known markets, sponsors can manage risk while deepening their competitive moat. At Farao Solutions, we help investors turn this idea into a process. Our team builds workflows that map entire ecosystems around portfolio companies, identifying suppliers, channel partners, and smaller competitors that could be integrated into existing platforms. By combining data collection, automation, and structured signal tracking, we make ongoing add-on origination systematic and measurable. In today’s environment, deal flow is not only about volume. It is about precision, timing, and repeatability. Add-ons offer all three when your sourcing system is designed to find them. 📈 Source: PitchBook Q3 2025 US PE Breakdown #DealOrigination #AddOnAcquisitions #PrivateEquity #MergersAndAcquisitions #FaraoSolutions #PitchBook #tuckin #marketmaps #sourcing #dealsourcing #businessdevelopment

Corporate carveouts are back in focus. According to PitchBook, carveouts represented 9.8% of all buyout deals in Q3 2025, above the five-year average of 8.6%. As volatility eases and corporates revisit strategic priorities, the pipeline of divestitures and non-core spin-offs is growing. At Farao Solutions, our team has deep experience in the carveout space, from sourcing opportunities directly with corporate development teams to helping investors track emerging divestiture signals before they become public. Here are two example workflows we build for clients in this space: 1) News-Signal Tracker: Automatically scrapes recent articles for keywords like “strategic review,” “business unit evaluation,” or “non-core asset sale” to flag potential divestitures early. 2) 10-K Carveout Scraper: Downloads public filings and identifies references to “portfolio optimization,” “segment performance,” or “asset rationalization” often buried in MD&A or footnotes, to anticipate carveout candidates. By combining automation with human judgment, we help acquirers surface these signals before the market catches on. 📊 Source: PitchBook Q3 2025 Global M&A Report #Carveouts #DealOrigination #CorporateDevelopment #MergersAndAcquisitions #PrivateEquity #FaraoSolutions #PitchBook

Every firm trying to scale origination faces the same choice. Do you build an internal team, or work with a specialized partner? On paper, hiring analysts or junior BDs sounds like the natural next step. In practice, it’s often slower, more expensive, and harder to sustain. Here’s how the two paths compare. 1. Cost and Ramp-Up Building a team takes time. Recruiting, onboarding, and training can stretch over months before results appear. Add salaries, benefits, and software costs, and your annual spend climbs fast. When you work with Farao, you plug into a fully operational system in weeks. The infrastructure, workflows, and data access are already built. You pay for performance, not trial and error. 2. Consistency and Volume Internal teams often face gaps when turnover happens or priorities shift. Outreach slows, data gets stale, and momentum fades. Our workflows never stop. Sequences run continuously, leads refresh weekly, and tracking is built into every stage. The result is steady, measurable deal flow. 3. Personalization and Industry Context Personalization is what separates noise from connection. Junior hires can struggle to interpret signals like leadership changes, new funding, or expansion announcements. Our campaigns are built around these signals. Automation surfaces the context, and our team reviews each message to make sure it’s relevant and credible. 4. Technology and Infrastructure Strong origination depends on clean data, email deliverability, and well-built automation. Setting this up internally is complex and time-consuming. We maintain the full stack — CRM syncs, scraping, outreach automation, and deliverability monitoring — so your team doesn’t have to. 5. Quality of Engagement Volume without judgment hurts credibility. Internal teams often chase numbers at the cost of meaningful interactions. Our focus is on engagement quality. Every touchpoint is designed to build long-term relationships and keep your brand top of mind. 6. Flexibility Hiring is a fixed commitment. Scaling up or down takes time. With Farao, you can adjust scope, change verticals, or pause campaigns instantly. You keep flexibility without losing momentum. When Building Internally Makes Sense? If you already have a well-structured process, senior oversight, and the bandwidth to train and retain a team, building internally can work. But for most firms, consistency and scale are hard to maintain without a specialized operations layer. The Takeaway Working with Farao gives you the reach and infrastructure of a full origination team at the cost of a single analyst. You stay focused on high-value conversations while we handle the groundwork that creates them. 👉 Let’s talk about how this model could fit your mandate. #DealOrigination #PrivateCredit #PrivateEquity #CorporateDevelopment #InvestmentBanking #BusinessDevelopment #DealFlow

The real power of AI isn’t in replacing people. It’s in amplifying what strong teams can already do. In private credit, equity, and corporate development, the real work isn’t collecting data or crafting emails. It’s building relationships, and knowing when to move. At Farao, we design systems that let AI carry the clutter: the repetitive, manual, time-consuming parts such as data collection, contact enrichment, news monitoring, and CRM updates. That way your team can focus on the gold: -High-quality conversations -Timely insights -Better decisions 👉 Let the machine carry the load. You focus on the value. #AIinFinance #DealOrigination #PrivateCredit #CorporateDevelopment #InvestmentBanking

In competitive markets, waiting is costly. The strongest firms: Spot signals early and engage before a process is crowded. Build direct relationships with decision-makers. Keep steady volume so pipeline never dries up. Proactive origination isn’t just about finding more deals — it’s about being the acquirer of choice when opportunities surface. 👉 At Farao, we design workflows that make proactive sourcing scalable and repeatable. Let’s explore how this applies to your mandate. #DealFlow #InvestmentStrategy #DealOrigination #PrivateCredit #GrowthEquity

Referrals feel warm and easy — but they come with blind spots: 1. They arrive late, often after other buyers are already in the mix. 2. They skew toward these that are obvious, not what’s strategic. 3. They create dependency instead of a repeatable process. Firms that lean too heavily on referrals end up with thin pipelines and lumpy deal flow. 👉 At Farao, we help investors build sourcing systems that complement referrals with disciplined outreach — so you never wait for the phone to ring. #DealOrigination #BusinessDevelopment #PrivateEquity #DealFlow #MergersAndAcquisitions

In our last post, we talked about the importance of tracking signals in private equity and credit. Here are a few that consistently matter: -Upcoming fundraises (growth equity & private credit) -Leadership changes (PE & activist investors) -Expansion announcements (growth financing) -Strategic reviews (corporate carve-outs) -Debt maturities (refinancing opportunities) The best firms don’t wait until a deal is obvious — they engage when the signals first appear. 👉 At Farao, we build workflows that capture these signals and turn them into actionable leads. Let’s talk about how to set this up for your mandate. #DealOrigination #BusinessSignals #InvestmentOpportunities #DealFlow #PrivateEquity #CreditMarket #InvestmentStrategy #GrowthEquity #DealMaking #Fundraising #CorporateFinance

In our last post, we talked about the importance of tracking signals in private equity and credit. Here are a few that consistently matter: -Upcoming fundraises (growth equity & private credit) -Leadership changes (PE & activist investors) -Expansion announcements (growth financing) -Strategic reviews (corporate carve-outs) -Debt maturities (refinancing opportunities) The best firms don’t wait until a deal is obvious — they engage when the signals first appear. 👉 At Farao, we build workflows that capture these signals and turn them into actionable leads. Let’s talk about how to set this up for your mandate. #DealOrigination #BusinessSignals #InvestmentOpportunities #DealFlow #PrivateEquity #CreditMarket #InvestmentStrategy #GrowthEquity #DealMaking #Fundraising #CorporateFinance

Why do some firms miss opportunities even with strong networks? It usually comes down to one of three gaps: 1) No system for tracking signals. 2) Too much reliance on referrals. 3) Reacting late instead of engaging early. Origination is about showing up before the process is crowded. With the right mix of automation and disciplined workflows, you can stay ahead of competitors who only show up once a deal is public. 👉 At Farao, we design sourcing engines that keep you in front of the right conversations at the right time. Want to explore how this applies to your mandate? Let’s talk. #DealFlow #InvestmentStrategy #BusinessDevelopment #DealOrigination #Mergersandacquisitions