TLDR:
- Private equity investments in supply chain are expected to pick up in the second half of 2024.
- There is a focus on operational efficiencies and value creation, rather than trendy tech investments.
In a recent interview with Supply Chain Management Review, Dan Luttner, managing partner at MorganFranklin Consulting, shared insights on the opportunities ahead in supply chain investments. Despite a decline in global private equity and venture capital deal value in 2023, Luttner sees optimism for increased investments in supply chain operations in the second half of 2024. Here are the key takeaways from the discussion:
Luttner highlighted the following points:
- There is $2.5 trillion in unallocated investment capital from 2023, signaling an eagerness to invest in operations-focused funds.
- While VC investments in supply chain saw a surge in recent years, there is now a shift towards strategic investments focusing on ROI.
On the private equity side, Luttner emphasized the importance of creating operational efficiencies rather than chasing trendy tech investments. With a focus on value creation and operational excellence, private equity funds are expected to find deal value in the market. Luttner also addressed common concerns about private equity investments, emphasizing the opportunities for growth and strategic investments.
Overall, the article highlights the shift in focus towards operational efficiencies and value creation in supply chain investments, offering insights into the opportunities ahead for private equity firms in the sector.
