Private equity firms looking to the consumer sector appear to be focusing on lifestyle improvement trends to coordinate investment strategies. Exercise, diets and shifting consumer needs supporting sustainable long-term growth are catching the eyes of dealmakers’ as we reported in the latest issue of Mergers & Acquisitions. Here is a look at what professionals are spotting in the market.
Dealmakers like HighPost Capital are taking advantage of consumer demand and are looking to consumer interests to drive prospective investments in the sector. The PE firm raised $420 million along with a $115 million co-investment vehicle to target firms within consumer, wellness, leisure and lifestyle industries.
HighPost invested in Centr, a digital health and fitness platform founded by Australian actor Chris Hemsworth. The firm additionally made investments in Inspire Fitness, a maker of free weights, rowing machines and exercise equipment which was then combined with Centr. Highpost also invested in cereal brand Magic Spoon.
“Global consumers have more choice than ever before, both in terms of the products available to them and the channels through which they buy those products,” says Harris Williams managing director Ryan Budlong. “That has led to higher expectations from consumers in terms of product quality and greater scrutiny of the contents of products. Consumers around the world want to know and understand what’s in the things they buy, how they were made, how the inputs were sourced, and how well they will perform before they choose.”
–Cole Lipsky
