WEBVTT 00:00:00.200 --> 00:00:00.960 Tom, welcome. 00:00:01.600 --> 00:00:05.200 Tell me, what's BCG doing to help investors boost value creation, 00:00:05.200 --> 00:00:09.480 When it comes specifically to portfolio management strategies? 00:00:09.480 --> 00:00:10.760 BCG is doing a lot. 00:00:11.000 --> 00:00:15.720 You know PE firms over time have relied on financial 00:00:15.720 --> 00:00:21.400 re-engineering and on multiple expansion to create value creation. 00:00:21.920 --> 00:00:23.080 Well, guess what? 00:00:23.280 --> 00:00:27.680 That's less available today than 10, 15, 20 years ago. 00:00:27.960 --> 00:00:31.640 So they're really looking at operational improvement to make 00:00:31.640 --> 00:00:32.480 things better. 00:00:32.840 --> 00:00:36.480 So we have launched an initiative to address that. 00:00:36.880 --> 00:00:40.920 Now, PE firms themselves are also doing a lot. 00:00:41.240 --> 00:00:43.560 They're adding to their operations team. 00:00:43.920 --> 00:00:47.480 They're hiring the best athletes, but the best athletes 00:00:47.480 --> 00:00:51.760 that know sectors really well, the sector's most important to them. 00:00:52.200 --> 00:00:56.480 Secondly, they're spending that time to also not only have 00:00:56.480 --> 00:01:00.440 sector knowledge but also functional knowledge, things 00:01:00.440 --> 00:01:04.400 like procurement, IT, cyber, digital, those things are 00:01:04.400 --> 00:01:08.080 important because they apply across the portfolio. 00:01:08.600 --> 00:01:13.600 Third, we see PE firm spending a lot more time on portfolio 00:01:13.600 --> 00:01:17.920 management systems, both the process and the tools. 00:01:18.280 --> 00:01:21.800 And then lastly, they're also hiring a lot more consultants. 00:01:22.160 --> 00:01:23.480 That's where we come in. 00:01:23.720 --> 00:01:28.760 So our portfolio value accelerator is meant to really 00:01:28.760 --> 00:01:34.160 go after this opportunity to bring the best of BCG to the 00:01:34.160 --> 00:01:37.520 portfolio companies of our clients. 00:01:37.760 --> 00:01:40.120 Tell me about the timing of this initiative. 00:01:40.120 --> 00:01:41.280 Why is it so important now? 00:01:41.800 --> 00:01:45.520 It's incredibly important now because we've been through a 00:01:45.520 --> 00:01:49.560 rocky stretch in the economy and now there's a lot of companies 00:01:49.560 --> 00:01:53.160 that would like to refinance that have higher debt cost. 00:01:53.440 --> 00:01:57.800 They've had difficulty growing like they were used to or 00:01:57.800 --> 00:01:58.840 accustomed to. 00:01:59.080 --> 00:02:02.920 So this is the time to get an injection from the outside in 00:02:02.920 --> 00:02:07.000 order to help make a difference and to make sure that over time 00:02:07.000 --> 00:02:10.320 the firm can create the results they're hoping for. 00:02:10.720 --> 00:02:13.360 As the leader of this initiative, what are you most 00:02:13.360 --> 00:02:13.960 excited for? 00:02:14.520 --> 00:02:17.000 It's about bringing the best of BCG. 00:02:17.000 --> 00:02:20.720 And when I say the best of BCG, there's a lot of it. 00:02:21.080 --> 00:02:25.280 There's a lot of it because BCG has incredible scale. 00:02:25.640 --> 00:02:30.280 So we don't just have a retail expert or a procurement expert. 00:02:30.840 --> 00:02:34.920 We have experts at the intersection of the two and it 00:02:34.920 --> 00:02:38.800 really is the intersection where the magic is made. 00:02:39.120 --> 00:02:42.400 So if people only do one thing, they get quite good. 00:02:43.120 --> 00:02:46.680 Additionally, you know, we're getting the word out and we've 00:02:46.680 --> 00:02:48.760 had really positive reviews so far. 00:02:48.960 --> 00:02:49.600 We do road shows, 00:02:49.600 --> 00:02:53.200 would love to see PE firms when we can. 00:02:53.560 --> 00:02:56.720 And most importantly, the impact is real. 00:02:57.560 --> 00:03:03.160 We tend to return 10X on BCG fees on everything that we undertake. 00:03:04.000 --> 00:03:05.080 Tom, thank you so much.