Sandhill Investment Management on Forgent Power Solutions, Inc.
Thesis
Sandhill initiated Forgent Power Solutions after its public listing while the company remained relatively underfollowed. Forgent manufactures electrical distribution equipment including transformers, switchgear and prefabricated power systems for data centers and the broader grid. Sandhill believes accelerating AI-infrastructure spending is making power equipment a critical bottleneck to new data-center capacity. Forgent's integrated product range should help customers deploy electrical infrastructure faster and in a more coordinated way, while the fund believes the current valuation still leaves room for upside.
“Forgent, by contrast, is a newly public company that remains less widely followed despite strong long-term growth prospects”
Key risks
- Growth depends partly on continued data-center and grid infrastructure spending