Facing unprecedented uncertainty and change, principal investors and private equity firms are exploring new ways to drive growth and performance. BCG helps them navigate the shifting landscape.
Investment funds, irrespective of scale or scope, must uncover innovative ways to grow and differentiate themselves while ensuring that their underlying operating models are continually fit for purpose. Fund investment strategy, private equity operations, and people and governance topics are now core C-suite agenda items.
Funds are increasingly expanding into new sectors, geographies, and asset classes, and rethinking engagement models with portfolio companies. Momentum is building in key areas, as funds double down on ESG investments, invest in digital and analytics capabilities, and optimize around people and organizational topics.
Our fund strategy and operations consulting teams work closely with private equity firms and principal investors to optimize five core capabilities:
We are thought leaders in the field of fund investment strategy and private equity fund operations, helping leading firms anticipate future trends in the industry, envision the next iteration of their business models and private equity operations, and embed digital and analytics across their value chains.
Expand, a BCG specialty company, helps leading principal investors and private equity funds further improve their internal processes by providing access to the most detailed operating and technology benchmarks in the world today.
BCG excels at reconfiguring private equity operations with new operating models and updated technology infrastructure to prime principal investors and private equity firms for success. Our holistic approach includes three key pillars: modern technology platforms based on modular architecture, a formalized data strategy and governance process designed to unlock insights, and an organization and culture shift that embraces new ways of working.
BCG’s fund strategy and operations consulting work has driven significant impact for leading principal investors and private equity firms globally, on a number of topics related to fund investment strategy. Examples include:
We worked with one of the world’s leading public pension funds to develop a firm-wide global digital knowledge management and data strategy, focused on both investment activities and support infrastructure. With BCG’s support across both design and implementation, the fund launched a best-in-class digital knowledge capability, generating 7 to 9 basis points of added value.
We helped a leading sovereign wealth fund in the Middle East redefine its firm-wide target operating model, increasing overall business efficiency by more than 30%, while increasing active intervention in business outcomes.
We collaborated with a leading global asset manager to find arbitrage opportunities in the asset-backed security markets through more accurate predictions of loan performance and defaults in auto loans. Our approach identified over $20 million in arbitrage opportunities, with 85% to 95% accuracy in predicting charge-offs and prepayments.
We partnered with one of the world’s most prominent principal investors to undertake a detailed end-to-end review of its internal operating model and technology architecture. Following our review and recommendations, the fund launched more than 38 targeted projects covering operating model and data strategy, with $5 million in benefits expected at the corporate center alone.
For sovereign wealth funds and pension plans, fostering a portfolio of innovative new ventures is a powerful opportunity. You might even create your own unicorn along the way.
Investors must put the technology, data management, and organizational practices in place to support sustainable growth.
Managing Director & Senior Partner
San Francisco - Bay Area
