Exploring Consumer M&A Trends in 2025 with TSG’s LeComte

In a recent installment of Behind the Buyouts, TSG Consumer Partners LLC’s managing director, Pierre LeComte, delved into the firm’s investment tactics and consumer market outlook for 2025. LeComte emphasized the essential role of consumer connections and brand loyalty in their investment strategy: “The common thesis [is that] there’s a consumer brand in there somewhere, and a relationship and an emotional connection with the consumers that they serve in their particular industry,” LeComte noted. The firm focuses on identifying lucrative opportunities within the diverse spectrum of consumer offerings.

TSG directs its investments towards burgeoning, profitable consumer brands like Planet Fitness Inc. (PLNT) and has expanded its reach to include sectors such as home services. Notable companies in TSG’s portfolio include ATI Restoration LLC, Joe Hudson’s Collision Center Inc., Wrench Group LLC, and CorePower Yoga LLC. Despite the market’s uncertainty due to tariffs and economic fluctuations, LeComte remains optimistic about continuing to explore potential deals and capitalize on consumer demands: “There’s a lot of uncertainty that’s happening with consumers today … [but] consumers are still using everyday services. The M&A market is there, you just got to know where to look,” he revealed.

TSG typically injects between $100 million to $1 billion in equity into companies with $15 million to $20 million in Ebitda, making both controlling and minority investments. To bolster their investments, TSG Vantage, an internal resource group, provides operational assistance to portfolio companies. LeComte staunchly believes in the resilience of the market, stating, “You can never write off a year, and I certainly wouldn’t write off 2025 just yet.”

For more insights from Pierre LeComte, tune in to the podcast attached below. The Deal offers a myriad of podcasts available on various platforms like iTunes, Spotify, and TheDeal.com.