BluWave Q2 PE Industry Insights Report Reflects Steep Rise in Value Creation

PE Firms Channeling Significant Resources Into Human Capital

NASHVILLE, Tenn.--(BUSINESS WIRE)--BluWave, a private equity-focused B2B Intelligent Marketplace, today released the latest quarterly PE report revealing Q2 2022 industry trends and predictions featuring due diligence and value creation. The data reflects proactivity by the private equity industry in the face of a coming recession.

With record investment activity in 2021 and predictions of an economic downturn along with growing inflationary pressures, private equity firms are focusing on driving value in their current portfolio companies. Over the last quarter, PE firms have been increasingly investing in meaningful functional areas, namely human capital, sales and marketing, digital transformation, and operational performance improvements. Consequently, Q2 2022 value creation activity is 15% higher than the Q2 2021 comparable period last year.

“Proactive PE firms are taking initiative to position their companies for success in the face of growing global economic risks,” said Sean Mooney, Founder and CEO of BluWave. “The best companies run towards a storm. This is the time for companies to become more efficient and get the right strategies, people, and technologies in place.”

Key findings from the BluWave Q2 2022 Insights Report include:

1. During Q2 2022, due diligence accounted for 32% of the BluWave Activity Index as compared to 41% during Q2 2021, reflecting a slowdown in new M&A activity.
2. 68% of Q2 2022 PE activity was related to value creation as PE firms focus on positioning their portfolio companies for future success.
3. Human capital has trended above 36% of all PE activity for eight straight quarters and remains a primary PE focus area.
4. PE firms are taking aggressive action to address inflation and stimulate top-line growth in the face of a predicted economic slowdown.

BluWave Senior Director Houston Slatton added “Our Q2 2022 BluWave Activity Index shows that the best business builders in the world are thinking ahead. Every company can similarly benefit by taking actions now to position their businesses for success as the economy cycles.”

To request a copy of the full report, please visit https://bit.ly/3Rc67jA.

About BluWave

BluWave is an innovative B2B Intelligent Marketplace that uses technology, proprietary data, AI, and human ingenuity to connect more than 500 leading private equity firms and thousands of proactive businesses with best-in-class, BluWave-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 www.bluwave.net for more information.