Tom, welcome.
Tell me, what's BCG doing to help investors boost value creation,
When it comes specifically to portfolio management strategies?
BCG is doing a lot.
You know PE firms over time have relied on financial
re-engineering and on multiple expansion to create value creation.
Well, guess what?
That's less available today than 10, 15, 20 years ago.
So they're really looking at operational improvement to make
things better.
So we have launched an initiative to address that.
Now, PE firms themselves are also doing a lot.
They're adding to their operations team.
They're hiring the best athletes, but the best athletes
that know sectors really well, the sector's most important to them.
Secondly, they're spending that time to also not only have
sector knowledge but also functional knowledge, things
like procurement, IT, cyber, digital, those things are
important because they apply across the portfolio.
Third, we see PE firm spending a lot more time on portfolio
management systems, both the process and the tools.
And then lastly, they're also hiring a lot more consultants.
That's where we come in.
So our portfolio value accelerator is meant to really
go after this opportunity to bring the best of BCG to the
portfolio companies of our clients.
Tell me about the timing of this initiative.
Why is it so important now?
It's incredibly important now because we've been through a
rocky stretch in the economy and now there's a lot of companies
that would like to refinance that have higher debt cost.
They've had difficulty growing like they were used to or
accustomed to.
So this is the time to get an injection from the outside in
order to help make a difference and to make sure that over time
the firm can create the results they're hoping for.
As the leader of this initiative, what are you most
excited for?
It's about bringing the best of BCG.
And when I say the best of BCG, there's a lot of it.
There's a lot of it because BCG has incredible scale.
So we don't just have a retail expert or a procurement expert.
We have experts at the intersection of the two and it
really is the intersection where the magic is made.
So if people only do one thing, they get quite good.
Additionally, you know, we're getting the word out and we've
had really positive reviews so far.
We do road shows,
would love to see PE firms when we can.
And most importantly, the impact is real.
We tend to return 10X on BCG fees on everything that we undertake.
Tom, thank you so much.