Good morning dealmakers, it’s Obey Martin Manayiti with the US edition of the Wire from the New York newsroom. I am bringing you PE Hub’s final Wire of the year, and I’m sharing highlights from our sector-based coverage throughout 2024.
We recently looked at factors that drove PE investments throughout the year and that we expect to be at the center of dealmaking in 2025. Today, I will look at the trends that drove PE deals in five of those sectors.
As we are in the festive season, we will start with opportunities that PE firms identified within the food industry, and then we will focus on the entertainment sector.
Next, we will shift gears to look at what’s driving PE-backed CPA deals, before switching to factors behind deals in the healthcare sector.
Finally, we will look at the growing appetite of dealmakers to capitalize on onshoring and nearshoring trends. This will likely be a major trend in 2025 if the incoming US administration makes good its threat to impose tariffs on its trading partners.
Food, Glorious Food
The food and beverage sector has had to adapt to changing customer spending habits due to inflation and interest rates, writes my colleague Nina Lindholm. Private equity has managed to find attractive trends within the market, despite these challenges, and the sector has seen plenty of deal activity in 2024.
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That's entertainment
Private equity investing in the media and entertainment sector became more diversified in 2024 as dealmaking expanded beyond the traditional Hollywood content hubs, although the latter remained a prime enticement, according to my colleague Iris Dorbian.
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Closing the books
Accounting firms have been attracting PE investments all year. Major deals in the sector included the acquisition of Baker Tilly by Hellman & Friedman and Valeas Capital Partners, announced in February, and New Mountain Capital’s investment in Grant Thornton, which closed in June.
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Patient direct care
PE Hub saw a steady stream of deals in the home-based care sector all year, writes my colleague John R Fischer.
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Onshoring
Over the last couple of years, PE firms investing in industrial and manufacturing sectors have been betting on onshoring and nearshoring trends. In 2022 and at the peak of the global supply chain crisis, PE Hub took a deep dive into the onshoring trend to explore how PE firms were seizing on the theme.
A few years later, there is anticipation that the trend will continue.
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That’s it for me today. As always, I’d love to hear from you at [email protected]
Editor's Note: There will be no daily PE Hub Wire newsletters from December 25, 2024 until January 2, 2025, as PEI Group is closed for the holidays. On behalf of all of us at PE Hub, we're wishing you happy holidays!
Obey
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