Composed of companies that supply high-performance and aftermarket products for automotive, motorcycle and watercraft hobbyists among others, the enthusiast consumer market has been generating interest from private equity firms. High-profit margins and consistent revenue await funds that can successfully develop “the next cool thing” and deliver it to a loyal base of eager hobbyist customers.
Sensing the opportunity, New York-based Monomoy Capital Partners has focused on this market, employing an operationally focused strategy to help companies expand product development, enhance supply chains and reach enthusiasts. But investors in the enthusiast consumer market need to be aware of the challenges impacting this market including scaling difficulties and major demographic shifts. Watch our video. Then read more at ACG Global Middle Market Growth.