I have been targeting with my colleagues the healthier segments of the food and beverage industry that are aligned with positive demand trends and that will impact the industry medium to long term. As part of our industry analysis, we regularly attend trade shows to get an overview of the trends shaping the North American industry.
We are back from the Fancy Food Show and Expo West, where an impressive number of new products are launched every year. Amidst the noise, we seek to discern the trend-setting products from those that will exist for a short period of time. Identifying structural trends that will impact the sector longer term is a complex task, requiring a great deal of analysis and research, as well as extensive expertise in the sector. Forecasting food and beverage trends is very much a blend of both art and science given all the variables at play. We have made our best attempt at identifying the following seven trends that have caught our eye and are supported by demand signals.
Je cible avec mes collègues les segments les plus sains de l’industrie des aliments et des boissons qui sont alignés sur les tendances positives de la demande et qui auront une incidence sur l’industrie à moyen et à long terme. Dans le cadre de notre analyse sectorielle, nous participons régulièrement à des salons commerciaux pour avoir un aperçu des tendances qui façonnent l’industrie nord-américaine.
Nous revenons justement du Fancy Food Show et d’Expo West où un nombre impressionnant de nouveaux produits sont lancés à chaque année. Au milieu de toutes les tendances divergentes, nous cherchons à discerner les produits qui définissent les tendances de ceux qui n’existeront que pour une courte période. Identifier les tendances structurelles qui auront un impact sur le secteur à plus long terme est une tâche complexe, nécessitant beaucoup d’analyse et de recherche, ainsi qu’une vaste expertise dans le secteur. La prévision des tendances à long terme est un mélange d’art et de science, compte tenu de toutes les variables en jeu. Nous ne prétendrons pas détenir toutes les réponses, mais nous ferons de notre mieux en abordant les sept tendances suivantes qui ont attiré notre attention et qui sont supportées par des signaux pointant vers une demande soutenue.
“Knowledge is power” – Sir Francis Bacon.
#DataDrivenInvesting #PE #VC #PrivateEquity #FamilyOffice #Investing #Fintech
I explained in my last post “The Next Edge in Private Equity” why I believe that tech-savvy, data-driven investors can gain an advantage.
I have been working with my colleagues at Claridge over the last several months on an initiative to leverage technology, as well as traditional and alternative sources of data, to improve our processes and efficiency. As a family office, we are a tight-knit group and we believe technology can provide us with an edge through differentiated insight and productivity gains. We have identified over 200 solutions, tools, and data sets. I guess that you can label us data junkies! We have been using several resources for a long time, we have tried some more recently, and we plan on trying others occasionally in the future given the high price points or the more niche use cases. It is a burgeoning field; we are constantly discovering new resources. You will find below a summary of the resources we deem most helpful and the ones we believe could add the most value to private market investors.
The private equity industry has experienced substantial growth over the last 30 years. There are currently over 3,500 firms globally with over $1 Trillion in dry powder (nearly 2x the amount in 2012). We have witnessed the industry maturing and becoming more competitive than ever. The business model of the industry has proven to be very successful and lucrative, incentivizing bigger funds, the creation of more and more firms and thereby crowding the marketplace, intensifying competition for the most attractive targets.
In such a high stake environment, the traditional industry model is increasingly being upended. Less information asymmetry between investors and entrepreneurs, less reliance on financial engineering to generate returns, and more focus on differentiation and value add services. Firms must fight harder than ever for an edge. In an era where data is the new oil, I believe that tech-savvy, data-driven investors will gain an advantage over their peers.
Capital is flowing to thousands of innovative upstarts and mid-market companies who are driving the growth of the food industry and taking an ever increasing bite out the dominant market share of Big Food’s legacy brands.
It is summer and you’re probably thinking how to best enjoy this amazing time of the year (super short for us in Canada) with your friends and family. Do yourself a favor and simultaneously make a small move that will potentially change someone’s life and definitively make both lives better. Hire a student entrepreneur!
Private equity (PE) is one of the most coveted corners of finance. Hence, entering the industry is very challenging. Whether you’re a student trying to jump start your career or a recent graduate seeking to transition in this exciting field, here are a few tips.