When the pandemic hit in February 2020 many investors froze, a good percentage grabbed some public market securities mid-month to catch the bottom of the market, but many private deals slowed down.
For months investors took fewer meetings, live events were canceled and were not always replaced with virtual ones, and investor access came to a halt.
While savvy investors may have moved forward confidently when valuations reflected the risk of the unknown, many investors became more cautious and allocated less for a variety of reasons and held on to cash.
Then end of 2020 PPP came out, vaccines rolled out, businesses started to open again – now just as we saw consumer spending return to and surpass pre-pandemic levels in some cases – investor activity is rising as well. Starting in late Q4 last year and even stronger in Q1 2021 investors have been allocating steadily into private companies, real estate companies, and opportunities much faster than 12 months ago.
Many are making up for the lost time during the months of March through December of last year, and others are flush with cash that they are behind on putting to work, and are further motivated by a potential spike in inflation and the loss of value in USD that is sitting in bank accounts.
Right now investors are hungry to find investments run by those they can trust.
They are not on the hunt for massive returns, they want to buy assets at good or great prices, apply smart strategies to them, and get their capital to work with sleep-at-night conviction in the value creation process.
There is a unique opportunity right now to raise more capital than ever before due to pent-up investor demand and inflation.
Birch Wealth Care 