The private equity market is shaped around the principles of potential and vision, so it is no surprise that certain industries always appear to be under the microscope when investment is on the agenda.
Private equity fund professionals, HULT Private Capital talk us through some of the most notable areas of future growth in the market.
Far from being breaking news, the pharmaceutical industry is ever evolving. The recent Covid 19 pandemic shone the light on the real-world role biotechnology has. Advances made in the biotech space allowed the fast roll-out of the vaccination program across the globe.
Beyond human biology, biotechnology is also used in nature. Studies into the growth of vegetation outside of their natural environment, the development of stronger crops and even the use of microalgae in biofuel are all examples of the reason institutional investor interest remains high.
“The split of the Johnson & Johnson corporation last year acted as a shining example to spectators
that the biotechnical engineering space is worth billions,” HULT’s London office based investment manager, John Hudson announced. He’s not wrong, according to Global Market Insights, who valued the market at $497bn in 2020, with expected growth of 9.4% CAGR between 2021 and 2027.
Much like biotechnology, the Internet of Things market still has room to grow. Contrastingly, IoT is very much in its infancy, but its solution bearing capabilities are set to transform the way we run businesses in the modern world. Expected to reach $1.39tn by 2026, we are seeing more investors putting their chips on the table to capitalise on the fast-rising market. “Private equity investors and venture capitalists are excited by it’s market potential,” promised Hudson. HULT Private Capital have long championed IoT’s place in a technologically dominant future in conversations with their clients, “the easiest way to highlight the future of Internet of Things to an investor is to look at the technology that has already taken over our homes. Smart Homes with voice-controlled thermostats, ambient lighting, kitchen appliances and entertainment systems. The capabilities of a carefully networked home system exchanging data in real time is a prime example of what the industry can offer, and this is on a smaller scale. On a bigger plain, it is transforming manufacturing, retail and design.”
We live in an age where our data is worth more than it ever has been. According to Statista, the market is forecast to reach over $68bn by 2025. In our heavy reliance upon doing things online, we are sharing much of ourselves, even unknowingly. Our interests no longer need to be willingly input on surveys when data cookies follow us around the internet, building a picture of us through our search patterns and purchases. ”The value of data is astounding because it allows companies to tap into their target audience using carefully directed psychographics. Data analysts have a more intimate understanding of us than government agencies and that in itself, is their true power,’” Hudson proclaimed confidently. He explained it is an industry HULT’s analysts actively scour, a favourite within the private equity fund arena and one they are keen to maintain a position in for the long term.