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5 Attractive ​​Private Equity Investment Opportunities in Q4

3 Min Read

Maintaining a pulse on the latest ​​private equity trends is critical to identifying viable investment opportunities, driving value for existing portfolio companies and accurately timing exit strategies for profitable returns.  

This is especially important when considering how quickly industries evolve. To determine the right time to pursue deals, firms must remain engaged and informed on target sectors. It is wise for firms to diversify their portfolios with a variety of investments across industries. 

Apex Leaders spends significant time vetting deals, connecting with knowledgeable advisors and understanding ​​trends in private equity. In this blog, our experts share several up-and-coming ​​private equity investment opportunities that could be a fit for your firm.

#1: ​​Fabricated Metal Product Manufacturing

Meeting demands in today’s competitive market requires high-quality machine tools. Given this need, the global machine tools market size is expected to rise at a compound annual growth rate (CAGR) of 5.7% from 2023 to 2030, reaching $137.43 billion

Specifically, the need is rising greatly for precision parts, or machine tools that are manufactured to meet specifications. These parts are used to quickly and efficiently complete particular tasks in automotive, defense and aerospace industries, among others. 

Precision parts companies can fill gaps from disruptions in the supply chain market. To stand apart from the competition, the most successful precision parts manufacturers sell more products to highly diverse end markets, offering nimble solutions superior to other suppliers.

#2: ​​Web Hosting and IT Services

Consumers and business are spending more time online than ever before—shopping online, chatting via messenger apps, streaming content, playing video games and more. This increased consumption requires effective technological solutions to support the growing digital demand. 

Web hosting companies are tasked with providing secure, reliable platforms for websites to exist. Over the next five years, the data processing and hosting services market is expected to reach a 4.2% CAGR over the next five years

Data processing is similarly gaining traction, especially with an increased reliance on cloud-based storage systems for company information. The IT industry as a whole is expected to experience high investment growth in the coming years, according to financial experts. In fact, 62% of companies expect their IT budgets to increase

#3: ​​Test Inspection and Certification Services

Many industries are experiencing both increased innovation and greater regulation. To meet industry compliance standards, more and more organizations are turning to companies that provide test inspection and certification services. 

Due to the rising demand across industries, this market is projected to grow 4.7% between 2021 and 2028. This market remains stable despite economic uncertainty. Even during recessions, inspections and certifications remain a required part of many regulatory processes. 

The bottom line is that companies need to use inspection services. The alternative is canceling projects altogether, according to a trusted Apex Leaders advisor. The solidity of this market makes it one of the most low-risk ​​private equity investment opportunities for firms.

#4: ​​Underground Infrastructure

Among ​​private equity investment trends, this one tops the list of importance. Aging drinking, waste and stormwater infrastructure requires maintenance or replacement on an ongoing basis. 

Over the past decade, the EPA issued 113 consent decrees mandating repairs. Plus, growing urbanization of mid-size cities requires new underground infrastructure. The U.S. Congress passed the Infrastructure Investment and Jobs Act in 2021, adding $50 billion to the repair and replacement of the nation’s aging underground infrastructure. 

Moreover, many municipal and state-level organizations are expected to publicly invest more in underground infrastructure since a drop during the COVID-19 pandemic. 

To better understand the problem’s prevalence, read these statistics: 

#5: Frozen Treats

COVID-19 kickstarted several private equity trends, including significant growth in the ice cream and frozen novelties market, according to Mintel’s 2021 U.S. Ice Cream Market Report. 

During the pandemic, customers placed more value on in-home eating opportunities. The trend isn’t slowing down. Customers continue reaching for items in this market, including fudge sticks, juice bars, ice cream sandwiches, Dippin’ Dots and more. Common sellers of these products include convenience stores, gas stations, movie theaters and other entertainment spots. 

The global market is expected to grow from $93.9 billion in 2023 up to $115 billion by 2028. The fastest-growing market is Asia-Pacific and the largest market is North America. When evaluating this market, firms should consider the key players: Haagen-Dazs, Magnum, Unilever, Ben & Jerry’s and Yili. The novelty segment expected to experience the fastest growth is water and fruit-based puree frozen items, with a projected growth of 13% from 2021-2028.

Ready to Pursue Any of These ​​Private Equity Investment Opportunities?

Partner with Apex Leaders for high-quality advisors to help you evaluate the best ​​private equity investment opportunities. ​​Contact us today to find your hand-picked advisor.