{
  "docId": "019dd923-5ca1-7489-b635-efee526b2162",
  "docSlug": "6ebe7bc3c470921e",
  "documentTitle": "Global Private Equity Report 2015",
  "authorId": "Bain",
  "authorName": "Bain",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "strategy_consulting",
  "sourceTypeLabel": "Strategy consulting",
  "presentationDate": null,
  "orientation": "portrait",
  "aspectRatio": 0.773,
  "pageNumber": 32,
  "pageCount": 68,
  "prevPage": 31,
  "nextPage": 33,
  "slideType": "industry_trends",
  "function": "analyze_data",
  "density": "overcrowded",
  "nDataPoints": 120,
  "notes": "The chart illustrates the yield spike during the 2008-2009 financial crisis and the subsequent stabilization.",
  "elementsJson": [
    "headline_text",
    "line_chart",
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5ca1-7489-b635-efee526b2162/32",
  "deckHref": "/decks/019dd923-5ca1-7489-b635-efee526b2162",
  "deckJsonHref": "/decks/019dd923-5ca1-7489-b635-efee526b2162.json",
  "deckAnchorHref": "/decks/019dd923-5ca1-7489-b635-efee526b2162#slide-32",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Eager lenders and accommodating debt markets spared them that fate.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd951-b48c-7655-b2fe-592d8d307bbf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.285,
        "w": 0.764,
        "x": 0.118,
        "y": 0.185
      },
      "kind": "chart",
      "text": "Yield trends for 5-year US Treasuries, 10-year US government bonds, Investment-grade bonds, Emerging market bonds, Leveraged loans, and High-yield bonds.",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "08e837f9-aed2-483e-baca-1e463e9d25bf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.045,
        "w": 0.48,
        "x": 0.26,
        "y": 0.435
      },
      "kind": "legend",
      "text": "5-year US Treasuries, 10-year US government bonds, Investment-grade bonds, Emerging market bonds, Leveraged loans, High-yield bonds",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d3547f87-febf-481e-8f01-de2c268b35af",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Yield",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd951-b48c-7655-b2fe-5f12dee44c00",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.764,
        "x": 0.118,
        "y": 0.825
      },
      "kind": "paragraph",
      "text": "The period following the downturn had its share of notable multibillion-dollar PE defaults. However, failures had little to do with the size of the portfolio company or how much leverage the buyout fund GPs used to finance it.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "26d48f77-9310-4909-90d7-d1fa1ad95689",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.764,
        "x": 0.118,
        "y": 0.53
      },
      "kind": "paragraph",
      "text": "Eager lenders and accommodating debt markets spared them that fate. As business conditions began to stabilize by mid-2009 and creditors regained confidence that the threat of widespread portfolio company defaults was retreating, creditors' hunger for yields outstripped their worries of default risk.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "952bc5f5-8117-4371-9de7-b13c260e7380",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.764,
        "x": 0.118,
        "y": 0.74
      },
      "kind": "paragraph",
      "text": "With rising valuations powered by broad market beta, worries of massive PE defaults soon subsided. Examining 337 companies owned by the 14 largest PE sponsors, Moody's discovered that the annualized 6% default rate between 2008 and 2013 was a shade lower than that of similarly rated companies.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c0076fec-4b62-427c-97be-7c086fe4627f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.764,
        "x": 0.118,
        "y": 0.655
      },
      "kind": "paragraph",
      "text": "Capital superabundance also quickly helped revive the valuations of PE funds' portfolio holdings by lifting public equity prices. As buyout-fund GPs revalued their portfolios to reflect stock market gains, net asset valuations climbed nearly every quarter since the financial crisis hit.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e4700185-9bab-4c1b-a7a4-bd2a2318859d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.3,
        "x": 0.118,
        "y": 0.485
      },
      "kind": "source-note",
      "text": "Sources: Merrill Lynch; PIMCO; Bloomberg; S&P Capital IQ",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "af7988b3-d1b0-475d-bf87-9a1b3a18e97a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.045,
        "w": 0.764,
        "x": 0.118,
        "y": 0.125
      },
      "kind": "title",
      "text": "Figure 2.2: The rapid drop in interest rates since 2009 and yield-hungry creditors helped portfolio companies skirt default",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f64298f8-e005-4956-8a83-7a7ecd12693a",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Causal Chain",
      "slug": "causal-chain",
      "agent": "Architect",
      "layer": "loop",
      "matchId": "019dd95a-173e-703c-8767-d40ae2dd4366",
      "evidence": "Rate drop -> yield-hungry creditors -> defaults avoided",
      "confidence": 80
    },
    {
      "name": "Action Titles",
      "slug": "action-titles",
      "agent": "Architect",
      "layer": "slide",
      "matchId": "019dd95a-173e-703c-8767-d2bccbe1696e",
      "evidence": "Causal action title about rate drop helping skirt default",
      "confidence": 85
    },
    {
      "name": "Chart Selection Guide",
      "slug": "chart-selection-guide",
      "agent": "Designer",
      "layer": "slide",
      "matchId": "6d51409e-6585-4b91-95d4-376a1ffe6787",
      "evidence": "The slide features a line chart showing yield trends for various bonds.",
      "confidence": 0.7
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 51,
      "from": 29,
      "beatId": "019dd95a-07a4-702a-b0b2-8d12c1cef02c",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Solution & Approach",
      "beatSlug": "consultants-gambit-solution-approach",
      "evidence": "Section 2 four forces: capital superabundance, shadow capital, US, Europe",
      "position": 3,
      "confidence": 82,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    },
    {
      "to": 58,
      "from": 29,
      "beatId": "019dd95a-07a5-761b-9143-8438c4caf57f",
      "arcName": "The Triple Take",
      "arcSlug": "triple-take",
      "beatName": "The Implications (So What)",
      "beatSlug": "triple-take-the-implications-so-what",
      "evidence": "Section 2: dynamics that will shape PE in 2015+",
      "position": 2,
      "confidence": 70,
      "parentBeatName": "Reflection",
      "parentBeatSlug": "reflection"
    }
  ],
  "loops": [
    {
      "to": 33,
      "from": 30,
      "name": "Why Now",
      "slug": "15-why-now",
      "bestFor": "Sales pitches, fundraising, requesting immediate budget approval",
      "matchId": "019dd95a-088c-724c-b312-3b10d5f2b5b8",
      "evidence": "Trend (capital growth) -> trigger (post-2009 rate drop) -> outcome (refinancing wall overcome).",
      "position": 5,
      "objective": "Explain why capital superabundance and low rates rescued PE",
      "structure": "The Context (Trends) -> The Trigger Event -> The Window of Opportunity",
      "confidence": 75,
      "description": "Create temporal urgency by proving that the window of opportunity is opening or closing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}