Technology and Platforms

Shifting to modern technology and data platforms can help firms consolidate and increase efficiency from their technology footprint, typically from about 30 systems on average to 5 to 8 systems. In addition, firms can realize average cost savings of 7 to 10 percentage points.

By implementing BCG’s data and digital platform, companies can scale up new digital services faster, while upgrading their core IT.

Data Governance and Insights

To close the knowledge gap and make data easier to access, firms should establish a data governance function headed up by a senior leader with the authority to bring investment, risk, finance, and other departments together so that they can align on a “single source of truth” and enforce data management changes across the organization.

BCG’s Build-Operate-Transfer is a proven method that allows companies to mobilize transformations that achieve digital at scale, scope, and speed.

Organization and Culture

To win in this new private equity operations environment, firms need to move quickly from ideation to action and empower their teams to make decisions quickly. This means optimizing and redesigning people and organizational processes, rethinking incentive and motivation structures, and embracing agile ways of working.

Our agile-at-scale framework can deliver overall employee engagement of 90% or more, accelerate time to market and new product delivery by two to four times, and reduce development costs by 15% to 25%.

Client Success in Fund Strategy and Operations

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.