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.
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).
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.
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.
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.
Traditionally, Construction has not been a preferred industry of interest for private equity firms, precisely because it is often capital intensive and cyclical.
However, the Private Equity Info Research Database currently tracks 393 unique portfolio companies in the Construction space, collectively owned by 321 unique private equity firms. Clearly, there is now PE appetite in the construction space.
Top PE Firms Investing in the Construction Industry
The following PE firms hold at least 3 current platform investments in construction companies.
The Private Equity Info Research Database currently tracks 521 unique portfolio companies in the Apparel space, collectively owned by 386 unique private equity firms.
The graph below shows the PE platform investment trend in Apparel companies over the past 6 years.
The Private Equity Info Research Database shows 267 PE-backed portfolio companies in the Staffing space. These companies are collectively held by 195 private equity firms.
The Staffing market includes recruitment, workforce solutions, talent management, staffing services, staffing software, and more.
