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.
