Tailored investment thesis drives PE firm’s dominance in $2 billion verticals
Posted by | Fuld & Company
Objective
A Private Equity firm with ~$1.5 billion in AUM, specializing in technology, consumer and healthcare sectors, approached Fuld to develop a private equity investment thesis to identify high-growth potential verticals and lucrative investment opportunities within one of their focus areas. The firm also sought assistance in identifying potential acquisition targets and experienced industry veterans with operational expertise to serve as operating partners and drive portfolio company growth.
Solution
Fuld worked closely with the PE firm to deliver a comprehensive solution:
- Sectoral analysis:
- Conducted a detailed analysis to identify high-growth, fragmented verticals with market sizes exceeding $2 billion and limited private equity penetration.
- Leveraged extensive market research and financial analysis to identify highly lucrative investment opportunities.
- Acquisition target identification:
- Shortlisted the most promising verticals and identified relevant acquisition targets that met the firm’s operational and financial criteria.
- Identified platform companies and add-on acquisitions, offering a strategic entry point into the chosen verticals.
- Industry experts:
- Identified and assessed seasoned industry veterans with operational expertise in the selected verticals.
- Evaluated candidates for their ability to drive value creation within portfolio companies and their strategic fit with the firm’s long-term growth objectives, reducing operational risks and maximizing post-acquisition growth potential.
Outcome
- The PE firm developed a robust investment thesis, significantly improving its risk-reward profile and overall returns.
- Fuld’s recommendations enabled the firm to establish a platform company and make three add-on acquisitions within 15 months, positioning it as a dominant player in the vertical.
- The success of the project led to the PE firm engaging Fuld for similar analyses in two additional focus sectors over the following year.
Tags: Financial Services, Mergers & Acquisition, PER, private equity
