What Does Industry Agnostic Mean?
Industry agnostic is a term that refers to private equity firms or investment banks that don't specialize in a specific industry. In some cases however, while industry agnostic firms may work in a number of different industries, they still have a geographic or middle market focus.
Divestopedia Explains Industry Agnostic
Since Industry agnostic firms are not industry specialists they may not completely understand the companies they hope to or do become involved with. For instance, an investment bank might not know who the buyers are and other industry specific information required to maximize value for their clients in a sell-side assignment. Some would argue that industry expertise is not necessary for an investment bank to sell a business at the highest price. Regardless of the level of industry knowledge, an i-banker will need to adequately communicate the value proposition of the business when taking it to market.
Industry agnostic private equity firms may spend too much time on due diligence and market analysis. They may also need to partner with industry experts to complete the transactions and operate the business post-acquisition. In some cases, industry agnostic firms may simply not have the industry specific expertise necessary for investment or acquisition. In other situations, an industry agnostic firm may bring new perspectives from its experience across a broader range industries.