Industrials

Why invest in Industrials

• Value Creation Opportunities
• Market Consolidation
• Stable Cash Flows
• Technological Advancement
• Global Demand
• Vast Supply of Potential Opportunities

What are the main risks of Industrials

• Cyclicality
• Commodity Price Volatility
• Supply Chain Disruptions
• Regulatory Challenges
• Technology Risk
• Labor Constraints

What characterizes Industrials?

• Industry/Sector: Industrials, including sub-sectors such as manufacturing, logistics, and infrastructure, often focusing on both niche and broader market opportunities.
• ESG: Positive Screening/Best-in-class and Impact Investing approaches are increasingly applied, with a focus on enhancing sustainability and operational efficiency within industrial companies.
• Instruments: Equity
• Target Company Size: Investments typically target Mid to Large-sized companies, though Small companies with high growth potential are also considered.
• Return Profile: The industrial sector offers stable, long-term returns, with opportunities for value creation through operational improvements, market consolidation, and technology integration.
• Geography: Depending on the investment strategy, investments in industrials can be Global, regional, or country-specific, with significant focus on regions with strong industrial growth such as North America, Europe, and emerging markets in Asia.

Question 1. How do you identify the most promising industrial sub-sectors for Private Equity investment, and what key factors drive your strategic focus within these areas?

Question 2. Given the cyclical nature of the industrial sector, what strategies do you employ to mitigate downside risks while maximizing value creation across economic cycles?

Question 3. How do you approach operational improvements in your portfolio companies, particularly in terms of integrating new technologies and optimizing supply chains to enhance efficiency and competitiveness?