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Turning passion into private equity profit within the consumer enthusiast market

January 21, 2019 Article 1 min read
Authors:
Ted Morgan

The niche market catering to consumer enthusiasts creates unique investment opportunities for private equity investors. Learn more about opportunities for investments in this market at at Middle Market Growth.

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The consumer enthusiast market is targeted at individuals who are not afraid of spending disposable income on their hobby. These consumer interests can spell steady profits from the companies that serve them—from makers of high-performance auto parts for car enthusiasts, to boating accessories for water lovers. This market creates an interesting niche for private equity firms to tap into. Because of the passion and loyalty of their customers, these companies’ sales tend to have an extra layer of insulation during economic downturns. Conversely, when the economy is healthy, revenue and profits can soar. And consumer enthusiasts are influential, so their recommendations can juice demand with friends and family.

Typically founded and owned by enthusiasts themselves, these companies often are small-to-midsize businesses and family-owned. Many of these companies have reached a certain size and seek investment and guidance to get to the next level, creating significant opportunity in this market for private equity investors. Find out how we have worked with Monomoy Capital to help take these companies to the next level.

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