The 3 Rs shunned by Private Equity: Retail, Resources, Real Estate
However, valuations tend to reflect the lower popularity, and therein lies the opportunity for independent sponsors, especially if they have a knowledge edge in a particular vertical.
Richard Baum suggests that 80% of independent sponsors deals are in 4 industries: Light mfg, value-added distr, services, healthcare.
Commonalities: high degree of repeatable/recurring revenue, asset-light, reasonable valuations.
More about this on the Minds Capital Podcast in this week's episode.
