Please read and agree to the Privacy Policy. Since our founding in 1984, weve applied our insight and experience to organically expand into several asset We assess a companys software or e-commerce platformfrom its product functionality and infrastructure to its securityto identify opportunities, avoid risk, and ultimatelydetermine a targets full potential. Develop a strategy for continued excellence, winning the war for talent and maximizing investment capabilities. Nicolas Bloch is a coleader of Bain & Companys Strategy practice. We can help you find the answers. Post-acquisition, we support the pursuit of rapid returns by developing strategic blueprintsfor acquired companies, leading workshops that align management with strategic priorities, and directing focused initiatives. Vector is a service mark of Bain & Company, Inc. We are proud to lead the industry on environmentally responsible practices as a Certified 100% CarbonNeutral Company. Our team of more than 2,000 private equity consultants serves clients globally, providing essential guidance on strategy, sourcing, due diligence, post-acquisition value creation, and institutional investor strategy. Should we be worried? An integrated approach that connects sustainability to your strategyand to results. Middling funds can step up their game by developing the kind of differentiated focus that distinguishes the top tier. We partner with you throughout the entire investment cycle. In 2017, two-thirds of all Bainies were involved in some form of social impact initiative across the globe, contributing over 30,000 hours of volunteer service and raising $1.5 million for local nonprofitsin addition to the countless hours and millions of dollars invested through our pro bono casework. A case interview is a way for us to discuss cases based on our client work. Build a foundation from which to deliver analytics strategy, develop analytic capabilities and create personalized flagship use cases. The best deal decisions require more than commercial diligence. Develop a strategy for continued excellence, winning the war for talent and maximizing investment capabilities. Returns in private equity, of course, arent monolithic either, which is why LPs have tended to reward certain funds over others. A unique partnership that combines breakthrough carbon footprint analytics with decarbonization strategy. Private equity investors recognize this and continue to believe in the consistent, long-term outperformance that buyout funds deliver. There is growing evidence that when investors embed ESG considerations into their strategies, they achieve superior valuations and a host of positive outcomes. Additional details will be available soon. Our consistent outperformers fell into four broad categories (see Figure 3.7). *I have read thePrivacy Policyand agree to its terms. And with deal multiples at record levels, its not going to get any easier in the years ahead to generate the kind of performance investors are looking for. John Senior is a partner with Bain & Companys Customer Strategy & Marketing practice. Stand apart from your peers and develop tailored strategies for continued excellence. (LPs) by Bain & Company and the Institutional Limited Partners Association (ILPA) 93%. All things being equal, public equities offer more liquidity at less cost. We have led hundreds of Extra 10% cases over the past few years, providing unique professional development opportunities while positively impacting local communities. BainsGreen Teamsleverage office-level green communitiesBainies who are passionate about reducing our environmental impactto champion sustainability strategies. Leading private equity firms are embracing the challenges and opportunities of digital transformation wholeheartedly. This article is Section 3 of Bains 2020 Global Private Equity Report. WebAcross the private equity industry, a new focus on environmental, social and governance (ESG) issues is taking hold, as investors realize ESG can not only increase valuations but also drive a wide range of positive social outcomes. Subscribe to Bain Insights, our monthly look at the critical issues facing global businesses. 2022 Diversity, Equity, and Inclusion Report, The approach you take to solving a problem, How analytical and creative your thinking is, Your usage of data to quantify and make your recommendations, Your communication skills in conveying your ideas, How you would suggest implementing these proposals. This is why our 10-year commitment to invest$1 billion in pro bono consulting workis so important. What are these top-tier funds doing right? Bookmark content that interests you and it will be saved here for you to read or share later. WebBain & Company is aware of various employment scams involving interview and offers of Bain & Company employment through the use of imposter websites, social media profiles, spoofed email addresses and other fraudulent means. More private equity sponsors team up to win bids and spread risk. We help tackle some of the world's toughest social issues by partnering with the most effective and change-oriented nonprofit organizations and government entities. Do you have differentiated scale that allows you to overwhelm the competition with more resources and staying power. As the firms oldest and largest office, it has played an integral role in transforming Bain into one of the world's leading management consulting firms. Bain supported the formation of the Alliance to End Plastic Waste, a coalition of 40+ global companies in the plastics supply chain that have pledged $1.5B over five years to eliminate plastic waste in the environment. We partner with organizations that have pioneered and scaled models of change that demonstrably work, but which often lack access to the type of strategic consulting that Bain can provide to help them reach full potential. The institutions that allocate increasing portions of their portfolios to buyout funds have good reason to expect a premium. In addition to our work with nonprofits, we help clients accelerate their core business strategies while addressing social, environmental and economic fairness considerations. We measure our success by the success of our clients: more than 60% of the Global 500, private equity funds representing 75% of global equity capital, leading nonprofits and innovative startups. Everyones buzzing about web3 and the metaverse, but what are the real-world implications for your business? Subscribe to Bain Insights, our monthly look at the critical issues facing global businesses. We can help youembrace a holistic approachthat spans the entire investing value chain, so you achieve superior returns and help create a more sustainable world. For those in the bottom quartiles, raising a fund is already becoming more difficult. Telecommunications M&A deal values continued to fall in the first half of 2022 after last years surge, but some deal types remain strong. Big deals roar back, especially in Europe. Stay ahead in a rapidly changing world. Given the historic sell-off in the wake of the crisis, US stocks were teed up for an equally historic rebound. Our externs support critical strategic projects and drive meaningful resultsthis past year we received a 100% Net Promoter Score from our extern partner organizations. At the same time, US equities benefited from a global flight to quality as bad news in EuropeBrexit, sovereign default scares, the threat of recession in Germany and Southern Europedrove investors to seek solace in the S&P 500. WebBain & Company is a top management consulting firm. Ensuring you have the right investment thesis and winning approach strategy, we help focus your deal generation and sector screening process. *I have read thePrivacy Policyand agree to its terms. As healthcare providers enter a new period of disruption, their software investment priorities present opportunities for vendors and investors. Payers look to advanced data analytics and member engagement in order to lower costs and improve outcomes. Theyre more adept at developing the right management team, adding capabilities when necessary, and tapping into the right ecosystem of partners when that makes sense. The best deal decisions require more than commercial diligence. Improving the efficiency and productivity of Indian agriculture. Public vs. They lock up their money for a period of years with the presumption that professional managers will generate alpha through innovative value-creation strategies and leverage. Subscribe to Bain Insights, our monthly look at the critical issues facing global businesses. Investors have poured more than $2 trillion into buyout funds over the past decade for a simple reason: They deliver. 2022 Diversity, Equity, and Inclusion Report. Our dedicated case teams typically partner with clients over a prolonged period of time to address their most complex, big-picture management issues. Shorten the time frame, however, and the picture isnt what most PE investors were expecting. Private Equity; Retail; Social & Public Sector; Technology; Telecommunications; Change Management; Cost Reduction; Customer Experience; Data Analytics; Digital Strategy; We have partnered extensively withAcumensince 2012from strategy and operating model design, to sector-mapping and investee pipeline development. The problems you will encounter are not designed to be brainteasers, or theoretical problems designed to stump you, but rather to reflect the challenges that our clients face. Through the waves, towards a sea of opportunity. WAB ensures our members are equipped to achieve their full potential here and If at least 80% of a firms funds ranked in the top two quartiles of industry performance over that period, we defined it as a consistent outperformer (see Figure 3.6). Growth equitys first big test came in 2022. We help you maximize the value of your portfolios with an approach that spans all industries, geographies, and asset classes. They source deals better than others based on a keen understanding of what theyre looking for and where to find it. Bookmark content that interests you and it will be saved here for you to read or share later. Since 2009, when the global economy limped out of the worst recession in generations, US public equity returns have essentially matched returns from US buyouts at around 15% (see Figure 3.1). Its the whole of you thats important. Learn about how we help clients in the education sector. They are also meeting demand for more sustainable, socially conscious corporate behavior, weaving ESG into all operationsand gaining market share in the process. We partner with a range of organizations that are creating meaningful change in our communities. Its worth noting that public and private returns have not converged in Europe. Bain has partnered with theKnowledge is Power Program (KIPP) since 2010 to increase the number of its low-income students graduating from college and more than double the number of students served. We advise investors across the entire investment life cycle. And if you win at a high price, you may come to regret it. While competition from the public markets will surely ease off at some point, the long-term trend in PE returns is more troublesome. They also continue to vote with their wallets. Buying at premium prices makes it ever more challenging to create value during ownership and exit with an acceptable return. Another opportunity for Bainies to make a difference is through nonprofit casework. Over the past 30 years, US buyouts have generated average net returns of 13.1%, compared with 8.1% for an alternative private-market performance benchmark, based on the Long-Nickels public market equivalent (PME) method and using the S&P 500 as the proxy. Extend the same slope out another 10 years, and PE returns start to look a lot less compelling. Our study found little evidence to suggest that competition from the public markets is likely to persist. Our healthcare and life sciences consulting expertise is built on a detailed understanding of each player across the value chain, from doctors and patients to payers, drug developers and manufacturers. As strong as private equitys performance has been for the past decade, buyout returns have been trending downward over the past 30 years. We work with environmental NGOs to strengthen their conservation efforts, and with corporate clients to embed sustainability and reduce environmental impact. During interviews, were looking for more than a rsum. *I have read thePrivacy Policyand agree to its terms. The firm announced an aggressive set of goals to help curb global warming by 1.5C, in line with its commitment to the Science-Based Targets Initiative. Private Equity. 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