PE Group Purchasing makes Headlines
Just a quick call out to an article that was in the New York Times on July 11th called “Private Equity Giants Use Size to Lean on Suppliers”. It focuses on the Blackstone Group and discusses shared procurement/group purchasing, one of the main value levers I mentioned in my post on June 13th. It also positions an interesting counter argument that group purchasing could strain relationships with critical suppliers while getting minimal benefits. I think it’s pretty clear where you draw the line on this one: commodity goods like computers, shipping, office supplies vs unique goods from strategic partners used for competitive differentiation.
Also interesting in the article…
If you aggregate their portfolio company revenues, Blackstone would be the 17th largest company and KKR would be the 5th.
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
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- 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
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