Happy Labor Day weekend, hubsters!
Aaron Weitzman here with today's Wire at the unofficial end of summer.
Workers unite. As we celebrate workers this weekend, it's a good reminder that employment issues continue to present huge challenges for companies, as people redefine and refine what they want out of work.
Figures released just this morning show that US employers continued to add jobs in August, albeit at a slower pace than the previous month. Job growth has been resilient throughout the year.
Nevertheless, talent acquisition and retention are the biggest factors limiting growth of portfolio companies this year, many private equity firms have told PE Hub.
Earlier this summer, PE Hub's Iris Dorbian wrote about how PE firms are investing in staffing and recruiting companies.
Among some buyers who have invested in this space are Halifax, Littlejohn and TA Associates.
Read the whole story here.
On the road again. Lots of people will be traveling this weekend, and many will be hitting the road. PE Hub reporter Obey Martin Manayiti has done a lot of reporting on PE firms investing in all things auto.
Last month, Obey wrote about why firms including Investcorp, Clearlake and Atlantic Street are snatching up parts makers.
Private equity dollars are streaming into the automotive aftermarket, spurred by shortages of parts for new cars, snarled global supply chains and rising prices. These market forces all add up to keeping cars and trucks on the road for longer, which is good news for PE firms investing in parts makers. PE Hub has noted a flurry of recent deals involving parts for heavy trucks, off-roads vehicles, racing cars, motorcycles and even electric vehicles.
Read the whole story here.
Workin' at the car wash. And back in May, Obey reported that PE firms are snatching up car wash companies at a rapid clip.
Investors have discovered the appealing attributes of the car wash business, including the basic service, strong margins, low working capital, labor efficiency and recurring revenue base.
As car ownership represents one the biggest investments many people can make, outside home ownership, caring for it is a priority. “Whether new or old, maintaining one’s car is important,” Gary Dennis, founding partner and vice chairman of Mammoth Holdings, told PE Hub. A trip to the local car wash is both emotional and economic, he said.
Read the whole story here.
Lights. Camera. ROI. Iris wrote a cover story for Buyouts, where she did a deep dive into Blackstone and Apollo, which have recently had starring roles investing in the entertainment sector. A revolution in content consumption means fierce competition and plenty of plot twists ahead, she wrote.
The catalyst was the explosion of content and streaming platforms. Neither could be ignored, nor the fact that legacy media assets, such as broadcast TV, were continuing to bleed both viewership and advertising revenues. Holding talks with former Disney executives Tom Staggs and Kevin Mayer, Blackstone sought to create a new template for investing in media. Candle Media was born, Iris wrote.
“Streaming platforms have transformed the way people consume content,” says Joe Baratta, Blackstone’s global head of private equity. “The trend toward consuming content from these platforms is irreversible, and industry-wide spend levels on this content will continue to grow. Candle is built on serving great content to both streaming and social media platforms and is not dependent on any one distribution partner. Candle’s value is in attracting and creating great content.”
Read the whole story here.
Wishing everyone a safe and happy long weekend! Until next time…
Cheers,
Aaron
Read the full wire commentary on PE Hub ...
