Whilst our consumer sector embraces a broad range of activities, they are each consumer facing and often have other common characteristics.
In the consumer sector, successful private equity investment requires specialist expertise. For example the high operational gearing of retail businesses makes structuring bank debt more complex and the unpredictable nature of consumer spending can make forecasting the future performance of retail and consumer product businesses extremely difficult. Leisure businesses are generally multi-locational and will usually require a successful roll-out of their concept and/or re-invigoration involving refurbishment of locations in order to achieve growth. Leisure businesses may equally operate in more mature markets in which consolidation is the path to value creation. Yet many consumer businesses are also highly cash-generative and are able to de-gear relatively quickly if they trade successfully.
Different consumer businesses will require different investment characteristics; some may have a roll-out strategy or see geographic expansion or consolidation as a route to value creation. Others may have product range development or other organic development needs. Our interest and experience is across all such strategies and sub-sectors.