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February 21, 2020 No Comments Author: Andy Jones

Private Equity Investments in Physical Therapy Companies

Private equity firms have made a number of investments in companies offering physical therapy services, including: general rehabilitation services, occupational therapy, sports injury recovery, orthopedic rehabilitation and pediatric therapy. Our Private Equity Database currently tracks 43 U.S. based physical therapy companies held by private equity firms.

February 15, 2020 No Comments Author: Andy Jones

Private Equity Investing in Security Companies

The security industry overall has attracted significant attention from private equity investors in recent years. Private equity investments into security-related companies ranges from cybersecurity, home security, national security, private security, to security screening of goods crossing borders.

Our private equity database currently tracks 719 current platform portfolio companies with some element of security to their product or service offering. 73 of these investments were made in the last 12 months alone.

February 08, 2020 No Comments Author: Andy Jones

Private Equity Investing in Gluten-Free Companies

Gluten-free food has been a significant trend for the past decade, especially the last few years. Consequently, select private equity firms have made investments in companies that offer an assortment of gluten-free food.

Our research database shows 52 investments in gluten-free brands (collectively held by 42 unique private equity firms). Of these, 36 are current holdings, 16 prior investments. 2017 had the most investments of any year thus far with 9 gluten-free portfolio investments. By comparison, there were 6 in 2018 and 3 in 2019.

January 29, 2020 No Comments Author: Andy Jones

Private Equity Investments in Manufacturing Companies

Headlines about private equity investments tend to focus more on the glamorous deals and faster-paced industries, particularly technology. Because of this, one might erroneously conclude private equity has curtailed investments in manufacturing companies. While it is true that manufacturing now represents a lower percentage of all private equity acquisitions compared to historical standards, PE firms still actively invest in the manufacturing sector.

In the last 60 days, our M&A Research Database has recorded 52 new private equity platform investments in manufacturing companies (there are even more add-on acquisitions in this space), of which pharmaceutical manufacturing was the most represented manufacturing category:

  • Pharmaceutical manufacturing (5 investments)
  • Automotive-related manufacturing (4 investments)
  • Contract manufacturers (4 investments)
  • Aerospace manufacturing (2 investments)
  • Lighting manufacturers (2 investments)
January 22, 2020 No Comments Author: Andy Jones

Private Equity Investments in Biotech Genomic Companies

Although much progress has been made in the last 30 years, the field of genetics is still an open frontier with much left to discover and learn.

In 1990, the quest to map the human genome was funded with $3 billion by the US Department of Energy and the National Institutes of Health. The project was expected to take 15 years. In an unusual twist – delivering a completed project before the deadline – the human genome was fully mapped by April 2003, two years early.

Since then, progress in the science and methodologies to map DNA has developed significantly, reducing the cost from billions to a few hundred dollars, making DNA mapping (or at least partial mapping) affordable to the general public.

This has given rise to notable B-2-C companies like Ancestry.com and 23andMe. In fact, the private equity firm Hendale Capital invested in 23andMe, a personal genomics and biotechnology company. 23andMe offers a proprietary FDA-approved genetic microarray test and web portal that helps consumers understand their health, genetic traits, and ancestry.

While most people are more familiar with these consumer facing companies that offer genomic testing, private equity firms have made more significant investments in portfolio companies involved in the field of rare genetic diseases, (sample transactions shown below).

January 10, 2020 No Comments Author: Andy Jones

Tariffs, Debt, Social Security and The Fed

I recently wrote some thoughts on the economy on my personal blog:

Economic Thoughts on Tariffs, Debt, Social Security and The Fed

I thought our audience here at PrivateEquityInfo.com would be interested as well.

QUICK SUMMARY

  1. Tariffs on Chinese goods could trigger an increase in interest rates for U.S. Treasuries (potentially inflation and a recession).
  2. The U.S. Debt load has garnered near unstoppable negative momentum and would be compounded by an increase in interest rates.
  3. Social Security concludes its final surplus year in 2019, applying further interest rate pressure on U.S. Treasuries.
  4. The Federal Reserve has considerably less maneuverability compared to 2008.
December 11, 2019 No Comments Author: Andy Jones

Schwab Acquisition of Ameritrade

Charles Schwab recently announced plans to acquire Ameritrade for $26 billion. The combined entity will have 24 million customer accounts holding ~$5 trillion assets.

While most people are familiar with Charles Schwab and Ameritrade for their enormous retail brokerage businesses, most do not know these firms also offer prime brokerage and custodial services to institutional investment funds.

Our research database tracks 53,711 institutional investment funds (hedge funds, private equity funds, venture capital funds, real estate funds, etc.). These funds often use third-party providers as prime brokers and custodians.

This data study reports on the prime brokerage and custodial services offered by Schwab and Ameritrade.