Hot Sectors for PE

Just ask CITI's ex CFO, or Russel Read. Once they start finding ideas that aren't hackneyed (or hackey-sacked) up by scientists that have ideas too risky for conventional funding. They'll need to care too much about their ideas to worry whether they're losing ownership in their idea.

Just my two cents.

PE - education sector

How about Healthcare sector at PE? To me, it seems to be a very interesting sector with lots of growth opportunities out there. Anyone knowledgable cares to comment?

How about industrials?

Thanks.

private education has been in play for a while, healthcare has been also if you look at services (insurance/claims handling/etc.) as well as specialty device and component mfg.

collection services had reared its head a couple years back but I haven't heard much on it since - wouldn't be surprised if there is an interest there - although I don't think there is much of a market outside of the lower middle-market.

wouldn't be surprised if an increased area of focus (either due to new funds or a broadened focus) is picking up companies in or immediately post BK - not necessarily industry specific. for the tried and true PE, I think alphaholic is probably on the right track.

infra

Are infrastructure and technology.

The first one as there will be many cities with budget shortfalls due to lower property tax receipts. They will bid out their infra for easy money and if they're hurting enough, the price will be good enough for those niche PE firms (not that many around).

Software is still relatively good as a sector given that there are many smaller/mid-market names that could be rolled up by a fund. Unlike retail or manufacturing, the exit multiples for tech are much nicer.

Minor disclosure: Read about infra on the Journal a while ago and the tech part is what I'm seeing long-term around where I work.

I'd forget all that BRIC non-sense, but hey, I could be wrong.