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Happy Friday and welcome to another edition of Axial Radar!
Private Equity’s relationship with the manufacturing industry dates all the way back to 1901, when J.P. Morgan (the person) acquired Carnegie Steel Co. for $480M. For the next 100 years, manufacturing would become the industry of choice for PE buyers around the world.
That century old trend, however, seems to be slowing down. For private equity that is… The total volume and value of manufacturing buyouts have been consistently on the decline since 2018. Venture Capital, on the other hand, has more than 10x’d their exposure in the space over the last 10 years. What’s causing VC to swim upstream into the historically PE dominated industry?
Head down to this week’s featured Industry Trends article to read more about how the technological advancements in manufacturing are changing the landscape both operationally and economically for manufacturing businesses and the capital providers they choose to partner with.
Our featured buy-side members this week include the asset management division of a 225 year old bank, a private investment firm focused on the energy and natural resources industries, and a corporation in the fluid sealing products market. On the sell-side we’ll introduce you to the investment banking subsidiary of a top 6 rated commercial bank, and a leading Ohio-based investment bank.
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