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April 09, 2020 No Comments Author: Andy Jones

Private Equity Investments in Infectious Disease-Related Companies

With the global response to the COVID-19 pandemic, many companies are suffering economic consequences beyond their control. However, certain industries might experience an increase in demand. Of particular interest, are companies specializing in infectious diseases.

Using data pulled from the PrivateEquityInfo M&A Research Database, I have listed private equity investments in companies working specifically within the area of infectious diseases.

April 01, 2020 No Comments Author: Andy Jones

M&A Market Pulse Survey Results

We surveyed private equity firms, investment banks and mezzanine lenders to get a pulse on the overall market sentiment surrounding M&A. We wanted to solicit the wisdom-of-the-crowd to report on current conditions and to capture what industry participants collectively think about likely future outcomes.

300 M&A professionals representing 267 unique firms completed the survey that was open for 24 hours – 78% from M&A investment banks and 10% from private equity firms.

March 28, 2020 No Comments Author: Andy Jones

CARES Act Summary

I started reading the CARES Act and making some notes along the way. 880 pages later, I realized I had accidentally created a 175-point list of where exactly the $2.2 trillion is going.

I don’t normally link to my personal blog, but many of our readers at Private Equity Info will likely have an interest in my comprehensive summary of the CARES Act.

February 24, 2020 No Comments Author: Andy Jones

Private Equity Investing in Data Analytics Companies

Data centric companies have become one of the most favored sectors for private equity investors in recent years. This trend started gaining momentum in 2011. Although private equity began exploring data analytics companies as an investment thesis in 2007 and 2008, the recession of 2009 – 2010 halted most PE investments across all sectors during this time.

The increased focus on data analytics companies is largely fueled by the adoption of predictive analytics (initially), and subsequently by machine learning and the rise in artificial intelligence. These applications require data (preferably good data) as the atomic input unit from which to learn. Input data informs machine learning much the same way our five senses input data into our brain, from which we derive patterns and develop predictive skills.

Data-as-a-product resonates with private equity investment preferences precisely because it is scalable, potentially quite profitable and not capital intensive (relative to scalability).

Private Equity Platform Investments in Data Analytics Companies

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)