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TLDR:
- Private equity is becoming increasingly intertwined with the supply chain sector, with key figures and verticals actively involved in deal-making.
- Article discusses the complex relationships and dynamics within the transport and logistics industry influenced by private equity investments.
A complex network of connections between private equity (PE) firms and the supply chain industry is emerging, with particular attention to players like Jens Bjørn Andersen and Brad Jacobs. These individuals, among others, have become prominent in an environment where private equity’s influence within transport and logistics (T&L) is growing. The article under review by Alessandro Pasetti, originally published on The Loadstar, evidently cannot be fully accessed without a premium subscription. Therefore, the summary is based on the information available prior to the subscription prompt.
Private equity’s interest in logistics and supply chain entities is not new, but has been gaining momentum since the onset of the Covid-19 pandemic. Increased investments and acquisitions hint at PE firms’ desire to leverage the potential of this sector. Moreover, the narratives suggest that certain verticals within the industry and individual identities associated with company leadership are more proactive and influential when it comes to deal-making activities.
Iconic figures like Jens Bjørn Andersen have taken on new roles; for instance, his appointment as chairman of STARK Group A/S after CVC Capital Partners’ ownership. Similarly, Brad Jacobs of XPO Logistics remains a figure to watch due to his history with the company and the overall sector’s performance.
The interplay of these relationships underscores how private equity is reshaping the industry. There’s a visible pattern of professionals with a strong background in T&L being sort after or leading new PE endeavors in the segment. Whether these private equity investments will lead to beneficial transformations or add complexity to the logistics landscape remains to be seen.
Relevant stories include DB Schenker’s high valuation whispers, suggesting a possibly inflated deal, and the unfortunate pairing of Forward Air with Omni Logistics described as a “horror show.” Amerijet’s financial struggles are cited as a reminder of the downsides of PE ownership. These narratives illustrate a market being influenced by individuals and firms capable of making significant changes through funding and investment decisions.
Private equity’s attraction to the logistics industry is also tied to current air cargo market conditions. Investors see opportunities despite an understanding that returns may not be quick. The Carlyle Group’s exclusive talks for a major stake in Medtronic units is highlighted, indicating the scale of PE interest and activity in this sector. While the specifics of many deals are not disclosed, it is evident that private equity is playing a pivotal role in shaping the future of transport and logistics.
In conclusion, the article hints at the need to adapt to the evolving landscape where PE firms
