I had a chance to re-read the great study from INSEAD on the emerging new models of value creation ( VC 2.0). The research contrasts traditional value creation models to a new and more comprehensive framework.
Traditional value creation elements tend to be:
EBITDA impact – focusing on operational value creation, process […]
Last week we had our 22nd global PE operating partner dinner. This event roams around the globe and so far had our dinners in New York, London, Beijing, Hong Kong, Singapore, Seoul, Tokyo, Sao Paulo. The primary purpose of the dinners is to bring together operating partners and experts focusing on value creation in the fast […]
I just returned from a trip to Japan talking to a dozen private equity firms about market and economic outlook.
Bain’s recently published report on the next decade’s massive capital abundance talks about a baseline of low return expectations. One way many firms countered this in the past was increased allocations to emerging […]
Ever since I got involved with Private Equity operators and their many times straightforward, simple and obvious finds for value creation, I wondered why management couldn’t find the same paths to success prior to change of ownership. Taking financial engineering aside, which is arguably a major value creator, what is most astonishing is how many […]
In the last few months China’s Private Equity revolution got a lot of attention due to the Focus Media LBO, touted as largest to date. Apart from size alone, I do think the shift from minority non-control investments to LBOs is very interesting. While I leave the regulatory and financial engineering aspects of these changes […]
I’m at an operating partner dinner in Calgary and this provided a great background for a conversation on the wide variety of operating partner models. Interestingly our firm holds these dinners around the world from New York to Beijing, London, Toronto, Singapore and other PE centers. We have seen the operating models work great in […]
A great new book recently hit the shelves by Jason Scharfman. While the topic is operations due diligence – this is the first book of its kind to get beyond financial due diligence into the risk in the operations of the business. What is uncovered in due diligence gives the eventual buyers an […]
While talking about refining business models is very common in Venture Capital discourse it is rarely discussed in PE literature. Bigger companies can benefit just as much from a structured review of the business model that leaves the world of spreadsheets and LBO models and brings management to the fundamental question – how do we […]
Since 2008 there has been increasing focus on operational value creation and even firms that traditionally shunned operating groups established a role for portfolio support or a resources team. While PE organizations may be shifting to seeking more of the alpha in improved sales and operations, PE conferences and associations still seem to be primarily […]
Value creation from a minority position has always been more difficult. Beyond the obvious reasons (minority vote and marginal board presence) there are several other challenges. Markets with dominant minority positions like MENA, India and Brazil for example have other similar characteristics:
– The owners / promoters want to retain control of the business and […]
What is this blog?
These are some of our insights along our value creation journey in private equity.
Instigator: Tamas Hevizi
- Value Creation 2.0 – The Quest for a Better PE Alpha
- Persistent Trends in Value Creation
- Macro Trends and PE Value Creation
- Why Can’t Management Outperform PE?
- Will China Transform Operational Value Creation?
- Green is the Color of Money
- Any Operating Model Could Work
- PE Group Purchasing makes Headlines
- Awards for PE Operational Excellence
- Great Books in Value Creation