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In The News 2024

Heath Zarin, founder of EmergeVest, on secondaries and industry focus supply chain investing

In a recent fireside chat hosted by Giovanni Amodeo, Heath Zarin, the founder, Chairman, and CEO of EmergeVest, shared his insights on the niche of supply chain investing and the dynamics of secondary markets. The discussion delved into various aspects of the industry, highlighting the strategic approaches and future outlooks in supply chain management and investment.

Key Topics Discussed:

Supply Chain as an Investment Niche: Zarin emphasized the attractiveness of the supply chain sector due to its significant share in the global economy and its highly fragmented nature. He pointed out the potential for growth by outpacing competitors and leveraging a buy-and-build strategy.

Value Creation through Supply Chain Optimization: The conversation touched on how optimizing supply chains and integrating technology such as AI and robotics can add substantial value. Zarin also discussed the importance of sustainability and ESG (Environmental, Social, and Governance) factors in modern supply chain operations.

Impact of Global Events on Supply Chains: Zarin shared insights on how events like the Suez Canal blockage and the semiconductor crisis have influenced supply chain dynamics. He stressed the importance of scenario testing and maintaining conservative leverage to navigate such disruptions.

Pricing Dynamics and Customer Impact: With rising costs in global logistics, Zarin discussed the inevitability of passing these costs to customers and speculated on future pricing trends, including the potential growth of financial markets around containerized freight.

Sustainability Initiatives: A significant portion of the chat was dedicated to sustainability, with Zarin outlining EmergeVest’s efforts to reduce carbon footprints through efficient logistics and alternative fuels, highlighting their commitment to creating environmentally friendly supply chain solutions.

Secondary Markets and Investment Strategies: The discussion also covered the evolution and sophistication of secondary markets in private equity, with Zarin predicting further growth driven by a broader acceptance of GP-led opportunities and geographical diversification.

Interest Rates and Economic Impact: Zarin touched on the implications of fluctuating interest rates on business operations and investment strategies, emphasizing the need for agile management of working capital in varying economic climates.

Vision for EmergeVest: Concluding the chat, Zarin articulated his vision for EmergeVest, aiming for the brand to be recognized for transforming mid-market businesses into global leaders through strategic investment and value creation.

Throughout the discussion, Zarin provided a comprehensive overview of the current trends and future opportunities in supply chain investing, underscoring the importance of innovation, sustainability, and strategic resilience in driving growth and value in today’s complex global market.

Key timestamps:

00:09 Introduction to ION Influencers Fireside Chats
00:35 Heath Zarin’s Background and EmergeVest
02:34 EmergeVest’s Focus on Supply Chain Sector
05:24 Impact of Macro Factors on Supply Chain Investing
07:12 Challenges and Disruptions in Global Supply Chains
09:08 Price Increases and Long-Term Impact on Customers
10:41 Financial Market Opportunities in Containerized Freight
11:32 Financial Opportunities and Hedging in Container Space
15:02 Comprehensive Metrics and Balanced Scorecard for ESG Performance
18:59 Evolution and Future of Secondaries in Private Equity
21:18 Perception of Pricing and Risk in GP Led Single Asset Space
22:13 Advantages of GP Led Single Asset Space
23:03 Geographical Diversification and Market Growth
23:31 Expansion of Secondary Fund Strategies
24:20 Funds Continuation and Value Extraction
26:24 Impact of Interest Rates on Business
27:35 Portfolio Management and Adjusting to Interest Rates
29:03 The Meaning of the EmergeVest Brand

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