Triago CEO Matt Swain Navigates $1 Billion "Directs" Deal Amid Global Bidding War

Matt Swain, the 30-year-old CEO of Triago, a private equity firm specializing in "directs," had a decision to make in August 2023. Five suitors, including top banks from Spain and Korea, a leading U.S. private equity firm, a major Midwestern lender, and a giant Asian trading house, were vying for control of the company. However, it was an email from Bob Hotz, chairman of corporate finance and acquisitions chief at Houlihan Lokey, that ultimately led Swain to reject all offers and remain with the mid-market investment banking powerhouse. The financial details of the deal were staggering. Triago, which had built a reputation for pairing solidly run businesses with family offices seeking outsize returns, was reportedly valued at over $1 billion. The company's success in the directs niche, which involves brokering deals between private companies and family offices, had generated significant revenue for Swain and his team. In 2022, Triago's revenue had reached $250 million, a 25% increase from the previous year. The market impact of Swain's decision was significant. The directs niche, which had been growing rapidly in recent years, was expected to continue its upward trajectory. According to a report by Preqin, a leading provider of data and insights on private capital, the global directs market was projected to reach $1.5 trillion by 2025, up from $750 billion in 2020. The growth of the directs market was driven by increasing demand from family offices and other institutional investors seeking alternative investment opportunities. Triago's success in the directs niche was not an isolated phenomenon. The company's business model, which involved leveraging its network of relationships with family offices and private companies, had proven to be highly effective. In an interview with Fortune, Swain attributed the company's success to its ability to identify and capitalize on emerging trends in the market. "We've been able to build a network of relationships with family offices and private companies that are looking for outsize returns," he said. "By leveraging these relationships, we've been able to generate significant revenue and build a successful business." The company's background was marked by a series of strategic partnerships and acquisitions. In 2020, Triago had partnered with a leading family office to launch a $500 million direct investment fund. The fund, which was designed to invest in private companies, had generated significant returns for investors. In 2022, Triago had acquired a rival direct investment firm, expanding its reach and capabilities in the market. Looking ahead, Swain's decision to remain with Houlihan Lokey was expected to have significant implications for the company and the directs niche as a whole. The partnership between Triago and Houlihan Lokey was seen as a major coup for the investment banking firm, which had been looking to expand its presence in the directs market. The deal was also expected to drive further growth in the directs niche, as Triago's expertise and network were leveraged to identify and capitalize on emerging trends and opportunities. In conclusion, Matt Swain's decision to remain with Houlihan Lokey was a significant development in the directs niche. The deal was expected to drive further growth in the market, as Triago's expertise and network were leveraged to identify and capitalize on emerging trends and opportunities. The partnership between Triago and Houlihan Lokey was seen as a major coup for the investment banking firm, which had been looking to expand its presence in the directs market.