“From an investment perspective, the stars have seemingly aligned for the supply chain segment, particularly those offering software or tech-enabled solutions."
Private equity investors are quite familiar with a value trap – or assets that appear cheap but also carry significant, unseen risks that stand in the way of multiple expansion. The supply chain technology segment, however, represents something of a “thesis trap.” However, GPs are nothing if not opportunistic and, in every challenge, lies the next great investment thesis.
There are several compelling trends that have inspired such great opportunity for investors such as significant government support, shifting consumer shopping behaviors, and accelerated digital transformation (advances in AI, cloud technologies, robotics and additive manufacturing).
TBM’s VP of Supply Chain & Technology practices, Ken Koenemann explains in Private Equity Professional why this opportunity is so attractive and what pitfalls to be aware of as PE firms consider this segment as part of their investment thesis.