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:
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.
We used our database of private equity portfolio company transactions to determine the most active law firms advising private equity deals in 2021 (based on number of deals, platform acquisitions only).
We reviewed our private equity database for 2021 platform acquisitions to determine the most active investment banking firms closing deals with private equity acquirers. Here are the top 10 I-banks, ranked by number of deals closed as PE platform acquisitions.
The trending private equity investment sectors for February 2022 were Wealth Management, Information Technology Services, Consulting, and Cloud-Based Software.
Sample transactions for each category are highlighted below.
Industry Trends Report
