Tag Archives: Private Equity Investments


Available financing and an abundance of dry powder in the Private Equity sector has recently increased the volume of deals and generated the highest amount of buyouts ever. This environment has not only sustained high average EV/EBITDA  multiples in the mid 11s, but the related yield pressure has caused GPs to look at creative approaches to winning asset competitions as well as value creation.

Business management consultancies are being leveraged as an important tool in the PE value creation toolkit due to their vast industry experience.  Yet even within a particular PE firm, financial dynamics are constantly in flux.  With deal competition driving firms to shake up their strategy and models, management consulting represents a critical stopgap for PE firms looking to navigate the private equity life cycle and implement sustainable operational improvements.

Rising above the competition

To really find great value in this tight market, you need to know what to look for in a consultant.  Ask yourself: Is your consulting firm simply providing philosophical and strategic guidance while leaving you to execute change unsupported?  Do your consultants have the operational expertise needed to deliver results?

This is where we can help.  USC Consulting Group is a top-tier organization with over 50 years of experience implementing sustainable operational improvement and leveraging that functional experience to help PEs get the most out of their investments.

Download our eBook: “Private Equity Value Creation: Increase Yield and EBITDA through Leveraging Consultants” to learn more, like:


Private Equity Value Creation eBook


Interested in learning more?  Contact USCCG today to discuss your portfolio companies and how to generate the greatest value creation.


Back to top ↑


The private equity industry has experienced immense growth in recent years. Firms worldwide raised almost $1 trillion throughout 2017 and 2018 as traders gravitated toward private investments, according to researchers from Peqin. Today, an estimated 5,100 separate PE entities populate the sector, intent on generating $1.6 trillion in the coming months. However, this exceedingly competitive investment environment, combined with the almost overwhelming complexity that comes with modern PE operations, creates significant risk, The Wall Street Journal reported. For this reason, it is essential that PE firms examine their investment workflows and address any and all operational components that might lead to losses.

Two areas in particular deserve special attention: acquisition assessment and asset exiting.

Laying the groundwork for marketplace success

Virtually all the organizations navigating the global PE sector maintain robust due-diligence processes. However, a good number engage in some worrying habits during this essential work. For instance, the average firm spends half as much time evaluating potential investments with known entities as it does reviewing opportunities associated with unknown parties, according to data from Evestment. Although relationships are important, this kind of operational oversight introduces unnecessary risk. So, instead of playing fast and loose with due diligence, PE firms should embrace in-depth investment assessment methods, including strategy-deal hypothesis creation, value blueprint modeling, and opportunity scanning, and apply them evenly to all opportunities.

Moving on without breaking the bank

PE exit volumes have decreased over the last three years, according to Pitchbook. Distressed exits in particular seem to be in sharp decline, meaning more firms are either releasing assets in good financial condition or retaining them for the long term, per the PE software provider. While it seems businesses in the PE industry have a firm grasp on exit strategy, some problems persist. Managerial bias is still a significant issue for PE firms navigating exits, with executives overlooking hard data in favor of emotional attachment. Again, this brand of asset management introduces additional risk into the investment equation and hamstrings PE performance. For this reason, exit strategy optimization is critical for modern PE firms, as is the implementation of data-backed portfolio assessment workflows.

As the PE marketplace tightens and operational complexity increases, it is critical that firms get a handle on these two key areas, lest they incur losses. Here at USC Consulting Group, we have been working with organizations in the PE sector for decades, leveraging our operational and managerial consulting experience to reduce risk and lay the foundation for growth.

Contact USCCG today to learn more about our work.


Back to top ↑