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.
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.