The Riverside Company’s Pam Hendrickson sifts through the Covid noise

PE Hub unveils outlooks for 2022.

Happy New Year, Hubsters!

At the Hub, we’re back on duty after the holidays, rested and ready for what we expect will be another robust year for private equity, despite new challenges from Covid.

Before we get started, let me introduce myself to those of you who don’t already know me. I’m Mary Kathleen Flynn (also known as MK), and I joined PE Hub last month as editor-in-chief. I’ve been covering private equity for about 15 years, most recently as the EIC of Mergers & Acquisitions, and before that as a senior editor at The Deal. A tech reporter before moving into financial news, I worked in the past at U.S. News & World Report and PC Magazine and also spent several years as a broadcast reporter at CNN and MSNBC.

We’ve got some exciting things coming up this year at the Hub, and I’m delighted to be here! As I settle into the new job, I’d love to hear from you. Send me PE deal news, trends and tips at: mk.flynn@peimedia.com.

2022 Outlooks

Now onto what’s on the Hub today: One of the first things I did when I arrived was to reach out to a handful of high-profile PE pros to ask for their forecasts for 2022. This week, we’ll be running their answers to key questions, including: Which sectors will offer the biggest opportunities? How will covid affect dealmaking? What about inflation? What role will ESG play this year?

Today, we kick off the Q&A series with Pam Hendrickson, vice-chairman of The Riverside Company, who shares her insights. “Pharma, medical and biotech are continuing growth sectors for M&A, especially as the healthcare industry is quickly evolving,” Hendrickson says. “Anything that involves digitization, or a disruptive technology is interesting. The education and training sector, in particular, is likely to have a significant number of opportunities resulting from digitization. The challenge is sifting through the covid noise and determining what is permanent versus temporary. For example, if a company has suffered supply chain disruptions and is moving to diversify suppliers, what is the P&L impact?”

Check back later in the week for our Q&As with: David Grain, CEO and founder, Grain Management; Zia Uddin, president, Monroe Capital; Brad Bernstein, managing partner, FTV Capital; and Beatrice Mitchell, co-founder and managing director of Sperry, Mitchell.

More cybersecurity deals ahead. Government agencies are spending more and more to combat the surge in cybersecurity threats. Enter Godspeed Capital, a Washington DC-based lower-mid-market private equity firm founded in 2020 by Douglas T Lake Jr, previously a partner at DC Capital Partners. Godspeed invests in technology and services for defense and government agencies. In April, the firm formed a strategic partnership with East Rock Capital LLC. And in December, Godspeed bought Varen Technologies, a provider of cybersecurity, software and intelligence services for the defense and intelligence communities, for undisclosed terms. PE Hub’s Aaron Weitzman interviewed Lake about the acquisition and the potential for add-ons.

HOUSEKEEPING: A reminder: we’re looking for your recommendations for rock star women in private equity, mostly on the deal side (which has been historically male-dominated). Deadline to get in your recs is January 17, for publication in March. Our annual Women in Private Equity project comprises 10 mini-profiles of highly regarded women in the industry and a feature story about some burning topic around the status of women in the industry. Check out our past coverage of Women in PE here. Reach Buyouts editor Chris Witkowsky with questions and recommendations at .