Explore Our Areas of Coverage

Business Process Outsourcing & IT Services

 

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New Technologies Support Remote Working & Living

Technology is still catching up with the new ways we’re working and living, with new winners to emerge at scale. Rapidly growing point solutions are proving themselves and then weighing next level investment or strategic consolidation in this changing world.

Contact Brian Cole >

Normalization of Revenues and Cost Exiting Covid

BPO and IT Services companies generally evidenced strong growth and margins in 20/21. This was driven by end market specific demand trends (i.e. ecommerce volumes, grocery delivery apps, video conferencing support) and the key will be how sustainable the growth will be as we revert to a more normal growth scenario. On the cost side, the benefits of WFH have been offset by increased labor costs, both of which should also normalize in 22. The cumulative effect of these factors will drive profitability in 22/23 and ultimately sector valuations.

Contact Kiran Paruchuru >
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Rise of the Global Technology Consulting Firm

Companies across all industries are facing constant digital disruption which is elevating the requirement for technology modernization and digital transformation. This massive global market is growing faster than ever before with an emphasis on technology consulting firms that can deliver end-to-end solutions encompassing digital strategy, cloud migration, product and platform engineering, data analytics, and customer experience transformation.

Contact Alex Sevilla >

Increasing Trend in Professional Services Outsourcing

Labor shortages in some of the most critical areas of professional services combined with improved and ever more accepting remote work technology have resulted in a rapid growth of outsourcing. This is now shifting towards much higher value-added areas of compliance, regulatory servicing, financial reporting, data analytics and technology implementation.

Contact John Sun >
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Facility, Industrial / Infrastructure, Rental & Environmental Services

 

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Sustainability Takes Center Stage

Investors continue to be attracted to the asset-light, high value-add nature of white-collar engineering and environmental consulting services. Businesses in the space create reliable, sustainable solutions which address many of today’s most challenging environmental and societal issues. Tailwinds in water, transportation, power and ESG in general are incredibly strong and are expected to last decades.

Contact John Lanza >

ESG Continues to Increase its Prominence

Investment themes addressing trends in ESG continue to be critically important as strategics and sponsors alike prioritize responsible business practices.

Contact Brad Page >
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Complexities of Facility Management

Critical service providers for facilities have never been more in demand. CFOs and facility managers are focused on outsourced solutions to navigate increased complexities and provide data-driven, actionable insights to optimize operations. As a result, multi-regional platforms that deliver tech-enabled solutions to the most critical assets and/or the largest segments of a budget are now more important than ever.

Contact Peter Robbins>

People Management & Culture are Key for Facility Services

While people management in outsourced facility services has always been important, it’s even more critical today given challenges in the labor market. Firms that have a winning culture can better attract and retain talent, which leads to differentiated service quality and financial performance relative to competitors.

Contact Chris Carlevato >
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Increasing Emphasis on Zero Carbon Initiatives

The transition to renewable power requires significant new investment to support distributed power generation. Underground and overhead T&D service providers will enjoy the resultant multi-year demand required to transform the current electrical grid.

Contact Rob Kaderavek >

The Infrastructure Bill Is a Catalyst To Current Growth

The U.S. infrastructure bill has attracted sponsor and strategic interest in infrastructure-related businesses, many of which already have successful track records of growth. The bill will act as a catalyst for these already successful businesses and the markets in which they participate due to their mission-critical nature and attractive fundamentals.

Contact Ardis Tabb >
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Government & Defense

 

Digital Transformation

Government agencies are undertaking a massive wave of IT modernization initiatives that will change the way they conduct business, serve citizens, and execute missions. This change is being accelerated by deployment of best-in-class commercial technologies and practices like low-code / no-code platforms, cloud-enabled applications, and Agile DevSecOps delivery that are oriented around getting solutions fielded faster, more cost effectively, and with better end results. We think companies with real expertise in digital transformation and a deep understanding of how government customers work will have an enduring impact on the market landscape.

Contact Jean Stack >
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Innovation at the Speed of Mission

The business of government is changing. Government customers are increasingly evolving their business models to support transformation and rapid adoption of advanced technologies to enable operational missions with speed and scale.

Contact John Song >

Multi-Domain Operations for Connected Battlespace

The emerging warfighting concept of Multi-Domain Operations leverages the proliferation of ubiquitous sensors connected in an IoT architecture to provide a seamless picture of the battlespace, enabling warfighters to quickly make critical decisions.

Contact Nicole Coffey >
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National Security Technology Renaissance

The federal government appears to be recognizing the value in having technology firms dream up software solutions to their myriad national security mission challenges. Venture-backed technology disruptors have made their way to our market with their own views of how best to attack these challenges at the same time that many of the traditional players – particularly in the government services market – have taken a keen interest in going upmarket with software-oriented, IP-driven solutions. As the government’s appetite grows, we see the potential for new players to emerge and quickly take market-leading positions.

Contact Jonathan Kirkland >

Knowledge Solutions & Human Capital

 

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Focus on Workforce Skill Gap & Upskilling

We hear about the pandemic-induced ‘Great Resignation’’ but the underlying causes of the current labor imbalance pre-dates Covid. Many ‘skilled labor’ verticals have been impacted due to the lack of affordable higher ed, continued misalignment of enrollment & market demand, lack of career & technical training in high schools, and the rapidly evolving needs in fields like healthcare and tech, etc. Next-gen professional training / learning models that are digitally enabled, closely align or affiliate with employers, and have funding tied to student outcomes will be key in closing the skills gap.

Contact Dan Alfe >

European EdTech: Making Waves

Traditionally, the U.S. EdTech market has been at the forefront of the sector, but European companies are now starting to make waves. We see several European EdTech businesses gaining meaningful scale, both organically and through M&A. Many of these groups are not only winning in Europe but increasingly internationally. As a result, we expect to see a sharp increase in focus on these leaders, as they continue to disrupt the space globally.

Contact Martin Luen >
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Bret Schoch Headshot

The “New” Workplace and Its Impact on Human Capital Management

The shifting approach to the workplace has dramatically altered every aspect of Human Capital Management (HCM). For new talent, we’re seeing this in the way candidates are sourced, screened and onboarded. Meanwhile employees want flexible work arrangements, attractive career pathing and enhanced ways to be rewarded. Lastly, employers are keen to support and provide services to their employees, no matter where they are located. Complementing these shifts is an increased emphasis on the strategic value of HR’s role within the enterprise and the accelerated adoption of change, particularly as it relates to the use of new technologies. All of this is driving attractive investment opportunities in the HCM space.

Contact Bret Schoch >

Heightened Focus on Quality Across Early Childhood Education (ECE) Markets

We perceive the ECE market to be in a period of rapid evolution, moving from a highly dispersed landscape where providers have predominantly focused on convenience and capacity to a future state in which we expect the education experience and clearly defined ‘grade level’ achievement will increasingly drive demand, dictate availability of public funding programs for providers and delineate a relatively small group of long-term winners operating at scale.

Contact Andrew Snow >
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Marketing & Information Solutions

 

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COVID Fueled Rampant Growth for MarTech and Services; Let the Consolidation Begin!

Marketing technology and outsourced services are increasingly viewed as non-discretionary expenses, critical to delivering financial targets and establishing competitive differentiation. COVID contributed to many companies shifting marketing spend to digital channels (utilizing third party software and/or services), a permanent shift that allowed many emerging MarTech companies to reach scale: scale in customers, service volumes/subscriptions, technology deployment and revenue and profitability. We expect growth to continue in 2022 and well beyond. That said, expect an increase in strategic M&A and consolidation activity in 2022, with select players using acquisitions to bolster scale and add new offerings to catalyze differentiation.

Contact Rhett Braunschweig >

Travel & Leisure: Data Utilization to Improve Customer Acquisition and Experience

Although domestic leisure travel has nearly returned to pre-pandemic levels, international leisure travel and corporate travel is still lagging. As such, travel and leisure suppliers – airlines, hoteliers, restaurants, cruise lines, etc. – need to drive down customer acquisition costs, increase levels of 'direct bookings' and improve the customer/traveler experience to ensure repeat bookings. Data has quickly become a valuable asset for companies in the sector, and more importantly knowing how to effectively use this data, will be important as the sector continues to rebound.

Contact Jordan Klein >
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Leaders Understand the Power of Data and Analytics

Winning companies continue to be the ones leading innovation and disrupting old business models. These top players understand the power of data and possess the ability to process business analytics to derive insights and disrupt existing markets. On top of this, we are now seeing ESG come into nearly all situations as a fundamental investment tenet and both a threat to situations and an opportunity to businesses. Businesses that create or collect data relevant to ESG will see a valuation boost.

Contact Justin Prichard >

Marketing Technology: Omnichannel Remains King

As the shift online continues, the need for a true omnichannel presence for brands and companies becomes more critical. Advancements in user targeting and increased refinement of AI and data-driven decision making have only reinforced the need for omnichannel marketing to drive engagement, increase retention and impact individuals at the point of purchase.

Contact Dan Arras >
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Software & Internet

 

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GovTech: Increase in Digital Adoption Yields Long Runway for Growth

State and local government entities have lagged in adoption of online / software solutions, with many still using homegrown or manual solutions. Meanwhile, state and local budgets throughout the U.S. are in very strong shape, leading to expected increases in spending across the board – especially into technology solutions. As such, GovTech providers across the full spectrum of functions are set up nicely for long-term growth.

Contact Jeremy Fiser >

Accelerating Digital Transformation

Enterprises that don’t adapt to digital transformation will fall behind or just disappear from the market landscape being beaten by those that recognize the disruptive impact on business models and entire organizations. Making an organization more agile, efficient and scalable is key to staying competitive. Greater speed to market has become mission-critical for success.

Contact Marco Krass >
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Enterprise Software - AI Starting to Shift Art of the Possible

The increasing demand on businesses to deliver with agility and at hyper scale pace is shifting the focus from systems of record to engagement. We are in the early phase of the impact of increased use of AI and automation which is starting to unlock further competitive differential improvements in processes, workflow, personalization and verticalization.

Contact Simon Pearson >

Enterprise SaaS Remains the Pacesetter

Recurring revenue software businesses will continue to be among the most in demand assets by investors, and among the highest valued. Medium and large enterprises have no choice but to increasingly rely on software solutions to address a growing litany of pressures to reduce costs in all corners of the P&L, leverage sprawling data stores for actionable insights and deliver better customer experiences. We expect continued strong activity in a number of SaaS sectors, notably GovTech, industrial tech, HCM, GRC, supply chain, and vertical “system of record” applications.

Contact Chase Sanders >
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Personalized Products & Customer Purchasing Experience

Consumers have grown to expect a tailored purchasing experience based on their individual preferences and to start their buying adventure on one platform and continue on another, whether it’s in-store, mobile device, social network, etc. Brands and retailers need to continue to better understand the interests of their customer behavior and coordinate their offline / online sales strategies across different platforms. We see these and many other trends driving consistent demand for technology and tech-enabled services that can achieve these critical goals that have become table-stakes for brands and retailers.

Contact Eric Winn >

Agile Cyber & Data Strategies Are Key to Success

Companies will be more valuable that have enterprise-wide visibility, know their vulnerabilities, can break down data silos and create meaningful intelligence. Agility is key to operating in increasingly complex, digital and distributed environments.

Contact Chelsea Smith >
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Kirsty Obuchowski Wallen  Headshot

Consolidation Is Key for Governance, Risk & Compliance

The last two years have only exacerbated the need for better risk and compliance management solutions across the business environment, and the demands have only become more complex as companies try to stay ahead of the shifting business landscape and balance demands of investors, regulators and stakeholders. Because of this, we will continue to see companies use fewer vendors and focus on integrated solutions that provide a single source of truth. It will be imperative that these third party GRC vendors demonstrate solutions that drive improved workflow efficiency, better decision-making, optimized cost management and closer stakeholder management. Additionally, increasing investor and regulator demand for ESG reporting and transparency will make software and data solutions fundamental to meet evolving needs.

Contact Kristy Obuchowski Wallen >