GA finds opportunity in health tech, Software as an inflation hedge

The Wire

May 6, 2021

GA finds opportunity in health tech, Software as an inflation hedge

Happy Thursday!

I’ve been talking inflation lately with some PE folks, trying to get a handle on whether firms are feeling impacts of rising prices, and if so, how that factors into their deal calculations and existing portfolio monitoring.

Orlando Bravo, co-founder of Thoma Bravo, made an interesting point on a panel yesterday that software companies are “a nearly perfect inflation hedge.”

“Look at the entire software industry, the value these customers are receiving by buying these products is so far higher than the price being charged, that if there’s strong pick up in inflation, these companies should be very easily able to pass on those pricing increases to their customers without creating a problem for those customers,” Bravo said Wednesday on a panel at The Global Boardroom digital conference.

Next-gen: Great piece over on our affiliate publication PEI about the future leaders of private equity. A few names of note: Haide Hong, 36, managing director at Blackstone; Allyson Satin, 35, managing director at Ares Management; Sebastien Siou, 32, senior principal at Whitehorse Liquidity Partners; and Henry Zhang, 35, founding partner at Morningside Capital Management. Read the full piece here on PEI.

That’s it for today! Reach me with thoughts, feedback, tips n’ gossip at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.

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Also of note (may require subscriptions)

Special: Brookfield Asset Management is targeting $5 billion for a special investment fund set up to invest in companies and assets outside the scope of the firm’s flagship pools. Brookfield Special Investments Fund raised $2.4 billion so far. Read it here on Buyouts.