Human resources was the top value creation category utilized by the private equity industry in 2021, accounting for 48% of projects in the BluWave Value Creation Index.
NASHVILLE, Tenn. (PRWEB) January 18, 2022
BluWave, a private equity-focused, B2B Intelligent Marketplace, has released its annual report on PE industry trends, including a deep dive into quarterly 2021 data. Robust valuations drove historic M&A volume in 2021. Due diligence activity grew in kind from 30% of all private equity activity in 2019 to 37% in 2021. In 2021, PE firms continued to embrace the strategic value of people, with human resources activity comprising 39% of all projects in the 2021 BluWave Activity Index.
BluWave founder and CEO Sean Mooney observes that the private equity industry provided differential support to their companies throughout the COVID-19 pandemic, “While other businesses were paralyzed, our data shows that the private equity industry ran towards opportunities versus cowering in the face of risk. The PE industry made heavy investments in strategy, people, and technology that helped their companies survive and even thrive during these challenging times.”
Here are a few of the key findings from the BluWave 2021 Insights report:
- While due diligence activity increased to 37% of all PE activity in response to historic deal flow, transformative value creation activity remained strong, accounting for the clear majority of private equity activity in 2021.
- Strategy was the number one due diligence category utilized in 2021, accounting for 43% of projects in the BluWave Due Diligence Index. During a period of historically high M&A prices coupled with elevated risk, the private equity industry placed significant emphasis on understanding market dynamics and defining new approaches for the COVID era.
- Human resources was the top value creation category utilized by the private equity industry in 2021, accounting for 48% of projects in the BluWave Value Creation Index. During the COVID era the private equity industry has been making huge investments in people as they bring in required skillsets for changing times.
- In 2021, BluWave saw significant investments in technology, digital transformation, and revised go to market strategies favoring inside sales and digital marketing tactics.
BluWave Managing Director, Katie Marchetti, shares, “Over the past two years, the private equity industry has been heavily impacted and influenced by the COVID era but remains incredibly agile. As we look at the data from this year, we see that the industry continues to react quickly, to pivot strategies, and to bring in the right people needed to succeed.”
To request a copy of the full report, please visit https://bit.ly/3zDg2Gt.
BluWave is an innovative B2B Intelligent Marketplace that uses technology, data, and human ingenuity to connect more than 500 leading private equity firms and thousands of proactive businesses with best-in-class, pre-vetted, third parties for critical due diligence, value creation, and preparing for sale needs. BluWave’s invitation-only Intelligent Marketplace includes private equity-grade service provider groups, independent consultants, and interim executives. Visit http://www.BluWave.net for more information.