{ "docId": "019dd923-5ca1-7489-b635-f31a406868d6", "docSlug": "ad48a7aff8040249", "documentTitle": "Global Private Equity Report 2016", "authorId": "Bain", "authorName": "Bain", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.773, "pageNumber": 63, "pageCount": 72, "prevPage": 62, "nextPage": 64, "slideType": "key_takeaways", "function": "summarize", "density": "balanced", "nDataPoints": 0, "notes": "Report page 57 from Bain & Company Global Private Equity Report 2016.", "elementsJson": [ "bullet_list" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5ca1-7489-b635-f31a406868d6/63", "deckHref": "/decks/019dd923-5ca1-7489-b635-f31a406868d6", "deckJsonHref": "/decks/019dd923-5ca1-7489-b635-f31a406868d6.json", "deckAnchorHref": "/decks/019dd923-5ca1-7489-b635-f31a406868d6#slide-63", "components": [ { "bbox": null, "kind": "callout", "text": "Successful firms will identify and focus on areas in which they have a natural advantage and build their strategies around them.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd951-ba87-7184-bb9b-4c2f2c037c11", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.67, "w": 0.764, "x": 0.118, "y": 0.158 }, "kind": "list", "text": "Record-level cash distributions to LPs over the past two years resulted in a huge influx of capital seeking to be redeployed into private equity. With top-performing PE funds oversubscribed, this surplus capital is spilling over to funds whose predecessors were only third- or fourth-quartile performers. On average, these funds exceeded their target fund-raising in 2015.\nThe flood of new fund-raising capital masks a shifting landscape as many LPs aim to streamline their PE holdings, reducing their administrative costs and negotiating more favorable fees and terms by writing bigger checks to fewer GPs.\nAs today's favorable fund-raising conditions slow over the coming year or two, GPs will need to be able to demonstrate to LPs that they have a sharply honed and differentiated strategy for achieving superior performance.\nThere are many ways to do this, and no firm can excel at all of them. Successful firms will identify and focus on areas in which they have a natural advantage and build their strategies around them. Many PE firms are testing novel pathways to differentiation that show promise and will become increasingly important in the years ahead.\nFirst, some firms are sharpening their focus on their investment sweet spots, enabling them to zero in on deals with characteristics that best match the firm's unique strengths, capabilities and past patterns of success. This is allowing them to effectively communicate both internally and with LPs the types of deals they will target and to build their expertise to capitalize on these deals.\nSecond, other PE firms are developing thematic investment insights to capitalize on broad macro trends and gain an investment edge. They are applying their in-depth understanding of key trends to identify and evaluate businesses and sectors that will see long-term sustainable growth.\nFinally, more PE firms are mobilizing their talent and resources to develop repeatable approaches for creating value across their fund portfolios. They are adopting value-creation models that reflect their firms' unique philosophy and distinctive investment preferences while ensuring that they methods for enhancing the value of their portfolio companies are consistent and focused.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9d92e9c0-dc0a-41cf-a3c3-8e119a2f65c8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.39, "x": 0.305, "y": 0.057 }, "kind": "paragraph", "text": "Global Private Equity Report 2016 | Bain & Company, Inc.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cc1ac8a0-e9c2-487d-8e2f-5d42c1c6e713", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.022, "w": 0.145, "x": 0.118, "y": 0.125 }, "kind": "title", "text": "Key takeaways", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "66858c78-4121-48dc-8125-5f04f547127c", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Peak-End Rule", "slug": "peak-end-rule", "agent": "Storyteller", "layer": "loop", "matchId": "019dd95a-173e-703c-8769-fb1c76fc5087", "evidence": "Closing summary at section end aids recall.", "confidence": 70 }, { "name": "Core Message Extraction", "slug": "core-message-extraction", "agent": "Architect", "layer": "slide", "matchId": "019dd95a-173e-703c-8769-f5b68c54d2f4", "evidence": "Bulleted 'Key takeaways' summarizes Section 2.", "confidence": 85 } ], "frameworks": [], "arcBeats": [ { "to": 69, "from": 45, "beatId": "019dd95a-07a5-761b-9143-96bfcaddcd0f", "arcName": "The Triple Take", "arcSlug": "triple-take", "beatName": "The Action (Now What)", "beatSlug": "triple-take-the-action-now-what", "evidence": "Sweet-spot, thematic, value-creation playbooks plus recession-proofing in Section 3.", "position": 3, "confidence": 85, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" }, { "to": 63, "from": 59, "beatId": "019dd95a-07a5-761b-9143-a4ffc66da8a9", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Evidence & Proof", "beatSlug": "consultants-gambit-evidence-proof", "evidence": "Value-creation capability data + consistency case + key takeaways.", "position": 4, "confidence": 70, "parentBeatName": "Evidence", "parentBeatSlug": "evidence" } ], "loops": [ { "to": 63, "from": 59, "name": "Capability Gap", "slug": "48-capability-gap", "bestFor": "M&A strategy, digital transformation, organizational design", "matchId": "019dd95a-088c-724c-b312-6daf4c8a9e1b", "evidence": "Chart: 'only half say they have a clearly defined model'; closes with 'Consistency is critical' and key takeaways.", "position": 8, "objective": "Diagnose value-creation capability gap and call for consistency", "structure": "Required Capabilities -> Current State -> The Gap -> Build vs Buy vs Partner Decision", "confidence": 80, "description": "Compare required capabilities vs. current capabilities to define the build/buy/partner decision" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }