Add-on acquisitions remain a popular route for private equity investors to build the value of their existing portfolio companies. So far this year, PE-backed platforms have acquired 375 U.S.-based companies, according to the PitchBook Platform. At 108 deals to date, third quarter add-on activity will likely surpass the numbers for the first quarter (143) and second quarter (124).
Media & information services has been the most active sub-sector in the timeframe, accounting for almost 4% of the add-on activity. Also strong are the industrial supplies & parts and consulting services sub-sectors, each with about 3%. Confie Seguros, an ABRY Partners-backed insurance platform that serves the Hispanic community, has added on nine companies so far this year by itself.