Private Equity

Creating value in private equity investments

Those able to demonstrate a consistent track record in creating value in their portfolio — which translates into best-in-class realized returns —should be well positioned to attract fresh capital.

Private equity (PE), similar to other industries, is not immune to continued macro-economic uncertainties, including the impacts of the US and European sovereign debt issues that cloud the horizon.

However, PE is resilient, nimble and has demonstrated an ability to withstand shocks. It’s no wonder private equity investors have come out of the recession with a renewed focus on organic revenue growth, applying a more entrepreneurial mindset to working with their portfolio companies.

PE will once again have an opportunity to prove that its active ownership — as we have found in both the North American and European studies on how PE investors create value — enables it to create stronger and more profitable businesses. In fact, institutional investors are seeking exposure to Latin America’s attractive growth story — Brazil in particular — like never before to initiate or expand their private equity investment programs in the region.

This begs the question: Is the rest of the world evolving to replicate the PE model in the emerging markets? Find out why we say yes.

PE-backed IPO activity

An IPO can be one of the best routes to funding growth for fast-growing companies seeking to raise capital. But it's not a decision that can be taken lightly, and the most successful companies approach an IPO as a transformational process rather than a pure financing event or an endgame.

Gain insight into the markets trends that are impacting global PE-backed IPO volume, deal activity, investor sentiment and more.

Private equity opportunities in emerging markets

To help private equity executives and investors gain insights into notable emerging markets, we offer perspectives into the trends, challenges and opportunities that are shaping them.

For a clear picture of where the industry is and, more importantly, where it is heading, see our individual sections on:

• Private equity in China

Managing risk — for opportunities

We know you’re concerned about the risks of regulation and compliance.

Meanwhile, as market volatility and pricing pressures unsettle the landscape, those forces are stimulating competition and creating opportunities.

To strike that balance between risk and opportunity, our research suggests that many leading firms are developing an overarching strategy that balances both.

Our work with clients reveals that there is a need to re-engineer the risk processes across the business, just as was done with finance, manufacturing, and supply chain processes.

The goal is to get better coverage on the risks that matter.

Learn more about turning risks and opportunities into results.