Good morning!
For investors in this pandemic, distinguishing between the temporary winners and consistent performers has surfaced as one of the biggest tensions in the market this year, Aaron Sack of Morgan Stanley Capital Partners told me in a recent interview.
“For many of the businesses that have survived the lockdown, there’s a lot of pressure on new investors to make sure that these trends are enduring and not just a result of this bizarre world,” said Sack, who heads the mid-market private equity arm of Morgan Stanley.
Sack cited packaging as well as facility services as two areas in which businesses that have performed, but not outperformed, and hence reflect long-term secular growth.
On another note, Sack spoke to the resilience of pet-related business models. MSCP this year not only successfully closed its majority sale of Pathway Vet Alliance in the midst of a horrible downdraft in the markets. (The vet giant scored one of the last syndicated LBO loans before debt markets shut down in its $2.65bn transaction.) Pathway, the investor said, ultimately accelerated the firm’s plans to monetize MSCP’s Manna Pro amid its successful pivot to the most attractive segments in pet nutrition and homesteading.
Check out my story for more insights from Sack.
Move on: Blackstone’s Steve Schwarzman, a close confidant of Trump throughout his presidency, told Axios that Biden won and it’s time to move on.
“I supported President Trump and the strong economic path he built. Like many in the business community, I am ready to help President-elect Biden and his team as they confront the significant challenges of rebuilding our post-COVID economy,” the chairman, CEO and co-founder of Blackstone told Axios. Read Axios’ report.
That’s it for me today. As always, write to me at springle@buyoutsinsider.com with any tips, feedback or just to say hello.
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