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Back to blog February 13, 2019 3 Comments Author: Andy Jones

Private Equity Portfolio Trends – Manufacturing

Private equity portfolio company data from Private Equity Info shows clear trends of how private equity firms invest in certain industries over time. The graph below shows the investment trend for manufacturing, from 1990 through 2018.

Private equity investments in manufacturing companies, as a percentage of the total number of platform portfolio companies acquired, continues to decline.

Private Equity Trends in Manufacturing

NOTE – because the entire private equity industry has grown significantly, there are likely more PE investment dollars flowing into manufacturing companies overall. Although I did not study the total dollars invested, given the meteoric rise in private equity, I think this is a safe statement to make.

So, where is the money going instead? My next few blog posts will look at this same data with other industries to try to answer this question.

3 Comments:

John Slater 2 months ago

We’re focused on the Advanced Manufacturing sector in the lower middle market (Generally under $100 million purchase price). It would be interesting to parse the data by size. Over the past three years, we’ve seen significantly broader interest from PEs and especially from family offices in the sector. Manufacturing multiples tend to be somewhat lower than hot sectors like healthcare and IT so that could have an impact.

Adams Price 2 months ago

What is the geography of the data set? What regions does it cover?

Andy Jones 2 months ago

Thanks for asking… the geography for this data is global, but given the concentration of PE firms and portfolio companies in the U.S. and Europe, the data is more heavily weighted in these regions.