The debt used in the transaction will be raised from banks and the high yield bond market. It’s not just buying the company. Sure, we private equity investing books the right companies, and we picked the right management and, most importantly, we’ve given them the right incentive to perform.
Consulting services We are known for our holistic perspective. We cross boundaries with our clients to create value. Company is the leading consulting partner to the private equity industry and its key stakeholders. We advise investors across the entire investment life cycle. Our practice is more than three times larger than that of the next-largest consulting firm serving private equity funds.
And Bain’s work with private equity does not stop with buyout funds. We work across fund types, including debt, infrastructure, real estate and hedge funds. We also work for many of the most prominent institutional investors, including sovereign wealth funds, pension funds, endowments and family investment offices. We maintain a global network of more than 1,000 experienced professionals serving private equity and institutional investor clients. Deal generation: We work alongside investors to develop the right investment thesis and enhance deal flow by profiling industries, screening targets and devising a plan to approach targets.
Due diligence: We help investors make better deal decisions by performing due diligence, assessing revenue growth and cost reduction opportunities to determine a target’s full potential, and providing a clear post-acquisition agenda. Portfolio value creation: Immediately post-acquisition, we support the pursuit of rapid returns by developing strategic blueprints for acquired companies, leading workshops that align management with strategic priorities and directing focused initiatives. Exit planning: We help ensure that investors maximize returns by preparing for exit, identifying the optimal exit strategy, preparing the selling documents and pre-qualifying buyers. Private equity firm strategy and operations, including sector strategy: Working jointly with private equity firms, we help them to develop their strategy for continued excellence. Institutional investor strategy: We work with institutional investors to develop top-performing alternative investment programs, including private equity, real estate and infrastructure asset classes. Topics include asset class allocation, sector strategy, portfolio construction, fund manager selection, governance and risk management, and organizational design and decision making.
Bain’s clients share our passion for results and it shows in their success. Companies that outperform the market like to work with us. Learn more by reading our featured client results stories. IRR Our client, an LBO firm, wanted to buy a cable TV company, but only if it could then expand into long distance telephone service.
We develop insights that work for our clients. Our approach and recommendations are highly customized and lead to practical actions. Visit Bain Insights to read more, or stay current on the topics you care about most by downloading the Bain Insights app today. Company maintains a broad network of experienced professionals serving private equity clients and other types of financial investors on four continents. We work with private equity clients as an integrated team, from deal partners to portfolio company executives. In addition to the leaders listed above, we have an extensive and diverse team of experts ready to serve the needs of clients worldwide. Please contact us to submit a business inquiry.
If you join a fund, you’ll invest your financial capital, but far more importantly, your reputational capital. VC and private equity are very illiquid on both the investing and the personnel side. You’re going to make daily decisions with your colleagues on the investments you will jointly make. To assess this, you’ll want to understand who is on the investment committee, and how voting works. In any organization there will be disagreements. This is all the more true inside a VC, often made up of former CEOs. So any well-managed VC will have an articulated mechanism for making decisions, taking into account input from all parties.
The modal disagreement inside a VC: Partner X invested in a company, which is now performing below expectations. X wants to invest more money because she’s on the board, has a closer relationship with the CEO, and failure will reflect poorly on her personally. The other Partners have lost faith and want to cut their losses. One proxy for understanding voting power is economics.
In theory, carry correlates with decision-making power. How Do Venture Capitalists Make Decisions? Roughly half the funds —particularly smaller funds, healthcare funds and non-California funds—require a unanimous vote of the partners. Yes, any of our team members can say yes. And no, you don’t have to meet my other partners.