Neel Bhargava, founding partner of NB Group Investors, discusses his firm's thematic private equity focus on death care and hospice services.
Disclosure
Bhargava: NB Group charges portfolio companies advisory fees for operational support
“In most cases, take a advisory fee from the companies, which is, you know, in exchange for the support we give our businesses and we are active hands-on investors. You know, I've gone down into the weeds, taking on interim CFO roles for our companies or taking…”
Opinion
Bhargava: Youth enrichment market has excess demand and fragmented supply
“Youth enrichment is, you know, afterschool activities, sports leagues, summer camps. It's a really fragmented market with tons of demand, not enough supply and A lot of positive market forces behind it.”
Insight
Bhargava: NB Group targets fragmented industries with willing sellers and low valuations
“What we look for are industries that We believe there's an opportunity to build market leaders where there's not so many to date where there are you know, it's a fragmented market where there's a lot of willing owners to sell, where we don't have to pay too mu…”
Disclosure
Bhargava: NB Group avoids using AI primarily as a cost-cutting tool
“There are certainly private equity investors who are pursuing Strategies that incorporate AI as a cost cutting tool to, you know, improve profitability of invest, you know, in businesses that they invest in. That's not something we've. Really pursued.”
Insight
Bhargava: Independent PE firms rely on founder relationships more than megafunds
“So that's not something that I think you need to do as much if you are at a large established, you know, for 30 years private equity firm and you're one of, you know, 15 partners. It's much more important for us, you know, cause we're kind of doing everything …”
Assertion Not checkable as stated
Bhargava: US lower middle market private equity is becoming increasingly efficient
“The US private equity market is
You know, very and increasingly efficient, even at the lower middle market, as we call it, the sort of small, medium sized businesses that we invest in increasing number of investors, sellers are increasingly sophisticated.”