{ "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": 45, "pageCount": 68, "prevPage": 44, "nextPage": 46, "slideType": "executive_summary", "function": "summarize", "density": "overcrowded", "nDataPoints": 0, "notes": "This is a text-heavy page from a Bain & Company report, functioning as an executive summary or editorial piece.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5ca1-7489-b635-efee526b2162/45", "deckHref": "/decks/019dd923-5ca1-7489-b635-efee526b2162", "deckJsonHref": "/decks/019dd923-5ca1-7489-b635-efee526b2162.json", "deckAnchorHref": "/decks/019dd923-5ca1-7489-b635-efee526b2162#slide-45", "components": [ { "bbox": null, "kind": "callout", "text": "A flight to quality has made the US a renewed focus of investors' interest, with PE investors prominent among them.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd951-b48c-7655-b2ff-9e518eeea114", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.155, "w": 0.764, "x": 0.118, "y": 0.399 }, "kind": "paragraph", "text": "A flight to quality has made the US a renewed focus of investors' interest, with PE investors prominent among them. In striking contrast to trends elsewhere, macroeconomic signals are flashing green across North America. After years of sluggish recovery since the 2008 recession, US job growth rebounded strongly in 2014. Consumer confidence and capital spending are turning up. Unemployment and government budget deficits shrank, and the US dollar is trading near its highs against other major currencies. The combination of an already strong dollar and sustained low inflation in the US, and the pursuit of expansionary monetary policies by central banks in Europe, Japan and China, will likely hold any interest rate increases by the Federal Reserve in check. Against that backdrop, the outlook for credit conditions remains auspicious for financing PE buyouts.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0a70f997-ba76-4ae3-933b-36b8dfdb4e12", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.113, "w": 0.764, "x": 0.118, "y": 0.258 }, "kind": "paragraph", "text": "But at a time when political, economic and social uncertainties are running high—as they are in most markets around the world today—PE investors are reflexively taking steps to reduce their risk exposure. Most European economies are slumping, as sovereign debt woes, deflation pressures, currency instability and near-zero GDP growth threaten to break up the eurozone. China's growth is highly volatile as it attempts to manage the difficult transition from the rapid expansion and investment that characterized its boom years to a more balanced growth model. War, social upheaval and tumbling oil prices have sent economies across Russia, Central Asia and the Middle East into free fall.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0c9d1a7e-cdd2-4059-9245-0061b0bb4bc4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.281, "w": 0.764, "x": 0.118, "y": 0.566 }, "kind": "paragraph", "text": "It is not only the customary business cycle indicators that point to a revival of the US economy. Analysis by Bain & Company's Macro Trends Group shows four durable sources of growth that could help power the US economic expansion deep into the rest of this decade and potentially beyond—engines that could help keep the economy humming for an entire PE buyout cycle. The first is the rebound of the US consumer, particularly middle-income households that benefited from the Fed's low interest rate policies, which helped reinflate housing prices, the principal source of middle-class wealth. Hit hard by the recession, these consumers are opening their wallets again. The second source of growth is demographics, specifically the coming of age of the vast population of younger adults born after 1980, who are entering their prime household- and family-formation years. Some 81 million strong, this generation is bigger than the baby boomer generation, with 76 million Americans who have largely passed their peak earning years or are entering retirement. The third force powering the economy is the juice provided by the energy sector. Now one of the world's top oil and natural gas producers, thanks to the shale drilling revolution, much of the US energy industry can operate profitably even at today's prices. Meanwhile, US energy consumers will see savings from lower fuel costs flow straight into their pockets and to their bottom lines—a spur to consumption and investment. The final growth factor is the emerging advances in robotics, nanotechnology, genomics, artificial intelligence and ubiquitous connectivity, which are just hitting the new product lines of big corporations and the radar screens of venture capitalists.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1430654b-b593-4ccc-a0aa-8e2101976ba2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.011, "w": 0.034, "x": 0.483, "y": 0.958 }, "kind": "paragraph", "text": "Page 39", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5a0c7cc1-1ea1-44a1-b166-827fb81fef7a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.042, "w": 0.764, "x": 0.118, "y": 0.859 }, "kind": "paragraph", "text": "As a new high tide of global capital starts to flow to US shores in search of promising opportunities, PE investors will find a market that is not only deep and welcoming but also mature and intensely competitive. As PE's home turf dating back to the leveraged buyout days of the 1980s, the US has long attracted the lion's share of capital", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "60c95795-77a3-45cd-bf5a-13a5ec94b8d1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.085, "w": 0.764, "x": 0.118, "y": 0.161 }, "kind": "paragraph", "text": "Discriminating PE investors have a long list of attributes they look for when deciding where they will put money to work. Their preference to invest where legal protections are strong, capital markets are liquid and corporate governance is transparent has long attracted them to the developed economies of Europe and North America. When the global financial crisis chilled the economies of the West, PE investors' appetites for novelty, an entrepreneurial culture and vast growth potential lured them to seek out opportunities in the emerging markets of Asia-Pacific, Latin America and Africa.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e8415454-8c97-435a-a17e-67de44e8b372", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.021, "w": 0.215, "x": 0.118, "y": 0.124 }, "kind": "title", "text": "Refocusing on America", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5ab4b086-ac0e-4d50-b07d-6cc5f4f2b2bf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.013, "w": 0.388, "x": 0.306, "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": "c866c420-7c3e-48c0-b051-06ae5919d0a6", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Action Titles", "slug": "action-titles", "agent": "Architect", "layer": "slide", "matchId": "019dd95a-173e-703c-8768-299ee84b161d", "evidence": "Frames new sub-section: 'Refocusing on America'", "confidence": 80 }, { "name": "Executive summary", "slug": "executive-summary", "agent": null, "layer": "slide", "matchId": "7f67cf84-592e-4289-9dcd-feaef38c6421", "evidence": "It is not only the customary business cycle indicators that point to a revival of the US economy.", "confidence": 0.9 }, { "name": "So What? Test", "slug": "so-what-test", "agent": "Architect", "layer": "slide", "matchId": "019dd95a-173e-703c-8768-2d2bfa860d14", "evidence": "Callout: 'flight to quality has made the US a renewed focus'", "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": 49, "from": 45, "name": "Tale Two Worlds", "slug": "04-tale-two-worlds", "bestFor": "Competitive analysis, benchmarking, case for change", "matchId": "019dd95a-088c-724c-b312-4299b62239a2", "evidence": "US captures 56–63% of buyout capital, deeper pool, top performers — contrasted implicitly with rest of world.", "position": 7, "objective": "Position the US as the relatively superior PE market vs alternatives", "structure": "Current State -> Desired State / Benchmark -> The Gap & Implication", "confidence": 78, "description": "Show the gap between two states to drive urgency or highlight opportunity" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }