The trending private equity investment sectors for May 2022 were Software, Healthcare, Manufacturing, and Business Services.

Sample transactions for each category are highlighted below.

Software

Software – Cloud-Based

Bow River Capital invested in ProductPlan (Santa Barbara, CA, US), a cloud-based product management platform.

Software – Security

Permira invested in Mimecast (London, UK), a provider of e-mail security software. The business is a comprehensive security platform with products including threat protection, E-mail continuity, archiving, awareness training, and web security.

Software – Cloud Native

Ardian invested in Taxually (Budapest, Hungary), a cloud-native tax compliance software company.

Healthcare

Healthcare – Eye-Care

TPG invested in Dr. Agarwal’s Healthcare (Chennai, India), an independent eye-care chain.

Healthcare – Staffing

Health Velocity Capital invested in Greater Good Health (Los Angeles, CA, US), a nurse practitioner staffing platform for value-based care.

Healthcare – Therapy

Frontline Healthcare Partners invested in JoyBridge Kids (Mt. Juliet, TN, US), a clinic-based ABA therapy provider with supplemental services in speech and occupational therapy.

Manufacturing

Manufacturing – Sports

DBHCAP invested in Salvo Technologies (Largo, FL, US), a developer and manufacturer of sports accessories and photonics product.

Manufacturing – Pharma

Caisse de dépôt et placement du Québec and ArchiMed invested in Corealis Pharma (Laval, Quebec, Canada), a CDMO for the formulation and manufacture of solid dosage oral Pharmaceuticals – tablets, capsules, and granules – during preclinical and clinical pre-commercialization trials.

Business Services

Vortex Capital Partners invested in Kees de Boekhouder (Amsterdam, Netherlands), a Bookkeeping-as-a-Service provider focused on freelancers and micro-businesses.

Abry Partners invested in CCS Fundraising (New York, NY, US), provides strategic fundraising support to non-profits worldwide.

Exponent Private Equity invested in Xeinadin (Dublin, Ireland), a provider of accountancy services and business advice.

Private Equity Transactions

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The chart below, from our Private Equity Database, shows varied PE appetite for third-party logistics companies over time.

Our previous post, Private Equity Growth Investments – by Industry, showed PE firms have distinct industry preferences for growth investments. Below are the Top 20 private equity firms for minority investments in 2021 (by # of growth investments made).

Private equity firms are more willing to make minority growth investment compared to prior years. However, based on data from our M&A Research Database, PE firms show distinct industry preferences for these growth investments.

The graph below shows the industry preferences for PE minority growth investments in 2021 only.

The trending private equity investment sectors for April 2022 were Healthcare, Technology, and Manufacturing.

Sample transactions for each category are highlighted below.

Expanding on our last post, Private Equity Investments in HVAC Companies, here we show the most active PE investors in HVAC companies, sample platform investments, and recent add-on HVAC investments.

Private equity acquisitions of Heating, Ventilation & Air Conditioning (HVAC) companies have accelerated in recent years as PE firms employ an industry roll-up and consolidation strategy in this traditionally fragmented space.

Our M&A Research Database shows 673 historical PE investments in HVAC companies, including:

• 379 platform acquisitions since 2010 (see graph below)
• 55 platform acquisitions in 2021 alone.

There are currently 233 active PE portfolio companies in the HVAC space (and 440 exits).

TruSight, our new partners, released their quarterly M&A survey results, covering deal flow changes compared to last year, deal sourcing strategies, and PE portfolio growth expectations for 2022.

The single best metric of a private equity firm’s appetite for a particular industry is the constitution of their portfolio – investments they have already made. For this, we produce a monthly PE Industry Trends report, based on completed private equity deals.

We also summarized the Top 10 Industries for PE Platform Investments in 2021, based on deals closed.

While Manufacturing & Distribution was the most sought after industry among PE firms (by stated industry of interest) in 2021, Software deals actually topped the list of completed deals.

The trending private equity investment sectors for March 2022 were Artificial Intelligence, Cybersecurity, Manufacturing, and Software.

Sample transactions for each category are highlighted below.