{
  "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": 38,
  "pageCount": 68,
  "prevPage": 37,
  "nextPage": 39,
  "slideType": "other",
  "function": "summarize",
  "density": "overcrowded",
  "nDataPoints": 4,
  "notes": "This is a page of text from a consulting report, not a typical slide deck slide.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5ca1-7489-b635-efee526b2162/38",
  "deckHref": "/decks/019dd923-5ca1-7489-b635-efee526b2162",
  "deckJsonHref": "/decks/019dd923-5ca1-7489-b635-efee526b2162.json",
  "deckAnchorHref": "/decks/019dd923-5ca1-7489-b635-efee526b2162#slide-38",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "A recent survey by Preqin, the PE data provider, found that 85% of LPs have realized bigger gains on their co-investments than on their fund portfolios.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd951-b48c-7655-b2ff-3813b9021b47",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "LP co-investment gains: 85%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd951-b48c-7655-b2ff-3d665098625b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.012,
        "w": 0.032,
        "x": 0.484,
        "y": 0.958
      },
      "kind": "paragraph",
      "text": "Page 32",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "076930cd-4bf6-41a8-9a02-93b834bdc4c2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.055,
        "w": 0.766,
        "x": 0.117,
        "y": 0.522
      },
      "kind": "paragraph",
      "text": "Despite the undeniable benefits that it offers both LPs and GPs, shadow capital also has the potential to shake up the PE industry. To begin with, shadow capital injects even more money into the already saturated deal market, increasing competitive intensity.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1448eba7-3989-45f6-aa8f-1b5a1d5cccfb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.055,
        "w": 0.766,
        "x": 0.117,
        "y": 0.125
      },
      "kind": "paragraph",
      "text": "As a percentage of total assets under management, from a weighted average of 6% in 2006 to 12%, according to the most recent data available (see Figure 2.8). Many have had to look beyond the traditional limits of investing in a PE fund in order to satisfy their bigger appetites for PE.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "806a4244-c73f-4874-a173-cce19bd16216",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.041,
        "w": 0.766,
        "x": 0.117,
        "y": 0.858
      },
      "kind": "paragraph",
      "text": "Rather than competing with GPs in their role as PE fund specialists, separate accounts enlarge their responsibility to that of a more general asset manager.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "91affed9-4e6f-4ae2-8616-066a5c8076bd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.069,
        "w": 0.766,
        "x": 0.117,
        "y": 0.383
      },
      "kind": "paragraph",
      "text": "There is also a lot for GPs to like about how shadow capital investments complement their traditional relationships with LPs. In a tough fund-raising environment, GPs can offer the opportunity to co-invest as a sweetener to encourage a current LP to re-enlist in a new fund, sign on earlier or commit larger amounts.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b2678fa8-b028-4f40-af97-0c1f84d54ca7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.152,
        "w": 0.766,
        "x": 0.117,
        "y": 0.695
      },
      "kind": "paragraph",
      "text": "Separate accounts. As they look for efficient ways to rationalize their PE exposure while managing larger investment portfolios, sophisticated LPs are turning to PE firms for help. According to a survey by Preqin, 18% of LP respondents reported that they actively invest in PE via separate accounts. Another 25% of those surveyed expressed interest in moving in this direction. Altogether, GPs have raised some $128 billion through more than 400 separate accounts over the past five years, still a relatively small total compared with the more than $2 trillion raised in PE funds over the same time period.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ca76e10a-7443-4826-a4d6-b0ecaf11723a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.083,
        "w": 0.766,
        "x": 0.117,
        "y": 0.194
      },
      "kind": "paragraph",
      "text": "Shadow capital's allure lies in the myriad ways it serves the long-term interests of LPs and GPs alike. For LPs, investing outside of the conventional PE fund structure improves their prospects for boosting returns at lower costs. A recent survey by Preqin, the PE data provider, found that 85% of LPs have realized bigger gains on their co-investments than on their fund portfolios.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d21d859e-7fc3-407a-96b1-139040234bc2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.012,
        "w": 0.384,
        "x": 0.308,
        "y": 0.057
      },
      "kind": "title",
      "text": "Global Private Equity Report 2015 | Bain & Company, Inc.",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c1e1db2d-2208-449d-b242-999748313eee",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [
    {
      "metricRaw": "LP co-investment gains",
      "numberRaw": "85%",
      "numberKind": "percent",
      "actionTitle": null,
      "calloutText": "A recent survey by Preqin, the PE data provider, found that 85% of LPs have realized bigger gains on their co-investments than on their fund portfolios.",
      "numberScale": null,
      "numberValue": 85,
      "metricFamily": "market_size",
      "numberCurrency": null
    }
  ],
  "tools": [
    {
      "name": "Audience Definition",
      "slug": "audience-definition",
      "agent": "Storyteller",
      "layer": "slide",
      "matchId": "fb4b0b44-be33-4a38-bc55-15b9a9133ce5",
      "evidence": "sophisticated LPs are turning to PE firms for help",
      "confidence": 0.7
    },
    {
      "name": "Authority Bias",
      "slug": "authority-bias",
      "agent": "Storyteller",
      "layer": "slide",
      "matchId": "019dd95a-173e-703c-8767-ff4758ac0281",
      "evidence": "Cites Preqin (industry data authority)",
      "confidence": 70
    },
    {
      "name": "Von Restorff Effect",
      "slug": "von-restorff-effect",
      "agent": "Designer",
      "layer": "slide",
      "matchId": "019dd95a-173e-703c-8767-fade2a433a3e",
      "evidence": "Standalone '85% of LPs' as anchor stat",
      "confidence": 75
    }
  ],
  "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": 44,
      "from": 38,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "019dd95a-088c-724c-b312-3fe1ca377e1a",
      "evidence": "85% of LPs see better co-invest returns -> growing direct investing -> 'Lessons for GPs'.",
      "position": 6,
      "objective": "Agitate the rising threat of LP shadow capital and what GPs must do",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 72,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}