Private Equity Consulting

We analyzed over 13,600 investor portfolios and ranked the largest 250 PE investors in Europe (300+ hours of research) Congratulations to all the leaders: 🥇 CVC (managing a total enterprise value of €70bn across Europe) 🥈 KKR (€66bn) 🥉 EQT Group (€61bn) Other investors in the top 10 include Blackstone (€58bn), Cinven (€45bn), Ardian (€41bn), The Carlyle Group (€33bn), TDR Capital (€32bn), Advent (€32bn) and Bain Capital (€31bn). Collectively, the top 250 private equity firms manage an EV of €1.7tn in Europe. A few other insights from the data: 1. Investors established in the 1990s or before manage 77% of the total EV 2. The top 25 investors manage roughly the same EV as the next 225 combined 3. Europe 250 investors have an avg. EBITDA of €94m and manage 26 companies each 4. German HQ’d investors are underrepresented in the ranking with just 3% of total EV 5. London is home to 50 of the top 250 investors, followed by Paris (32) and New York (21) 𝗦𝗲𝗰𝘁𝗼𝗿 𝗟𝗲𝗮𝗱𝗲𝗿𝘀 - Hg (TMT) - CVC (Services and Industrials) - EQT Group (Science & Health) - KKR (Energy & Materials)  - Cinven (Financial Services) - TDR Capital (Consumer) Services, Consumer, and TMT are the largest PE markets by sector. Notably, Hg in TMT and TDR Capital in Consumer predominantly target those sectors, representing 71% and 69% of their portfolio, respectively. Compared to European investors, North American investors overweight TMT, Financial Services and Energy & Materials. They underallocate to Services, Industrials and Healthcare. 𝗚𝗿𝗼𝘄𝘁𝗵 𝗟𝗲𝗮𝗱𝗲𝗿𝘀 Hg, Cinven and Astorg stand out with high-growth, high-margin portfolios. CD&R, TDR Capital and PAI Partners rank among the largest employers in Europe given their large retail/consumer portfolio. Waterland Private Equity stands out as a big buyer of family-owned businesses. ________ 𝗙𝘂𝗹𝗹 𝗥𝗲𝗽𝗼𝗿𝘁 Tons of more insights and charts in the full analysis: 💡List of top 250 investors 💡Sector and Regional rankings 💡Portfolio insights (Growth, holding periods, and more) 💡Detailed methodology Get it here ➡️ https://lnkd.in/ezekm4MJ #investors #pe #europe #insights

Private Equity firms are increasingly eyeing accounting firms as prime acquisition targets. The playbook is simple: acquire an established firm, then aggressively attract disillusioned Big 4 and Tier 2 Partners, leveraging their ability to generate high-margin, recurring revenue. In the past three years, PE firms have taken stakes in five of the top 26 accounting firms. This trend shows no sign of slowing, with Grant Thornton UK LLP and Cooper Parry rumoured to be the next in line. For cash-strapped accounting firms, PE offers a lifeline by injecting much-needed capital to invest in technology, expand service lines, hire top talent, or enter new markets. Post-acquisition, these firms are transformed. Corporate governance structures streamline decision-making, resolve conflicts more efficiently, and create a more agile operating model. Perhaps most notably, these environments are far more appealing to younger professionals, who value stock options and equity based compensation over the traditional partnership track offered by the Big 4. As more senior Partners at large firms witness former colleagues thriving in PE owned firms, they are increasingly questioning the value of staying within a larger firm. Many are frustrated by the “premium” they pay—the gap between the revenue they generate and what they earn. Internal competition for clients only adds to the strain, creating conflicts and limiting opportunities. In a landscape where scale and brand recognition matter less than they once did, these lean, PE-backed firms offer a compelling alternative. With lower overheads, highly skilled teams, and streamlined operations, they achieve. greater profitability with less pressure on employee utilisation. For Partners, this translates into significantly higher equity stakes and improved take-home pay.

How Debt Supercharges Returns in a Leveraged Buyout (LBO). One of the core ideas behind leveraged buyouts is the strategic use of debt to amplify returns for equity investors. The diagram below illustrates this shift in capital structure. On the left, we start with a business financed by a relatively small amount of equity and a large portion of senior debt. In an LBO, private equity firms deliberately increase the debt component of the deal, reducing the upfront equity contribution. Over time, as the company generates cash flow, this debt is repaid, leaving a larger share of the value creation attributable to the equity slice. The result: even moderate improvements in the company’s value can translate into outsized equity returns, often with internal rates of return (IRR) exceeding 20%. This is possible because the equity base is smaller to begin with, and the repayment of debt effectively transfers more of the company’s value to equity holders. Of course, leverage is a double-edged sword—it magnifies losses just as much as gains. But when used carefully, it’s a powerful tool that explains why debt is central to LBO transactions and why equity investors often see such high returns. Learn more about LBO and M&A transactions at Corporate Finance Institute® (CFI).

This is what success looks like in VC. Founders in the portfolio succeeding is one part. But the numbers are key too. How to measure real wins in VC: ❇️1. DPI (Distributions to Paid-In Capital) - Measures actual cash returns to limited partners (LPs). - Reflects tangible profitability for LPs. - Usable to fund future fund commitments. ❇️2. TVPI (Total Value to Paid-In Capital) - Combines cash distributions and unrealised investments. - Provides a broader view of fund performance and efficiency. - Takes into account private market valuation. ❇️3. IRR (Internal Rate of Return) - Evaluates time-adjusted yearly return rates. - Measures fund performance over time. ❇️4. Bulge Bracket Follow-on - Assesses follow-on funding from top-tier firms. - Demonstrates investment quality and outcome potential. - Particularly valuable for early-stage funds. ❇️5. Gross MOIC (Multiple of Invested Capital): - Measures performance of underlying investments - Excludes fees and expenses which are front-loaded and can distort performance at early stage of fund. These key metrics help LPs evaluate the health of VCs. Peeling back all the snazzy branding, press and glowing reviews... End of the day, VCs are investors and trusted stewards of capital. They need to pick not just the right businesses but at the right price. And, they need to deliver value to their LPs. Anything more to add?

Tariffs Are Bad For The Global Economy, But May Spur Cross Border M&A As I have been watching the tariff threats and counter threats, it seems to me that they will likely stimulate the cross-border m&a activity. Here’s my take on why tariffs, despite their many negative effects, could actually lead to more cross-border M&A activity: Market Access Strategy Tariffs can be a double-edged sword for companies looking to expand globally. On one hand, they create barriers to entry, but on the other, they can spark creative solutions. I’ve seen firsthand how companies pivot to acquire local players as a way to bypass tariff-related costs. This strategy not only provides immediate market access but also helps firms establish a local production footprint. Supply Chain Restructuring In my experience, tariffs often trigger a domino effect in supply chains. Companies start looking for ways to mitigate tariff exposure, and cross-border M&A becomes an attractive option. By acquiring suppliers or production facilities in tariff-free regions, firms can maintain competitiveness while adapting to new trade realities. Competitive Dynamics It’s fascinating to see how tariffs can reshape competitive landscapes. In protected markets, local companies often become prime acquisition targets for foreign firms seeking to enter without facing high import duties. This dynamic can lead to a surge in cross-border deal activity, especially in industries with high capital requirements. Challenges and Considerations While the potential for increased M&A is there, it’s not all smooth sailing. Tariffs introduce: • Increased uncertainty: Geopolitical tensions can make firms hesitant about long-term investments. • Valuation complexities: Assessing a target’s true value becomes trickier when tariffs distort profitability forecasts. • Regulatory hurdles: Countries imposing tariffs might also tighten foreign investment policies. Industry-Specific Impacts In my work, I’ve noticed that tariff effects vary significantly across sectors: • Manufacturing and Automotive: These industries often see a spike in cross-border M&A as companies seek to establish local production. • Tech and Services: Generally less affected by tariffs, but broader trade tensions can still influence deal flow. The Bottom Line While tariffs undoubtedly have numerous negative effects, they will also reshaping global business strategies. For the M&A world this presents both challenges and opportunities. The key is to stay agile, understand the nuances of each deal, and navigate the complex interplay between trade policies and corporate strategies. What are your thoughts on this? #CrossBorderMA #CFIUS #FDI #TariffImpact #GlobalTrade #MergersAndAcquisitions #Tariffs #Trade #Business

Most partner leaders ignore private equity. But the smartest ones treat it like a GTM cheat code. This chart shows the Top 50 PE firms by capital raised (2020–2024). But here’s the play for partnership leaders: These firms don’t just invest. They build ecosystems. Behind every investment is a portfolio, and behind every portfolio is a warm path to: - Co-sell deals - Strategic integrations - Executive access - Embedded distribution If you’re not working the PE ecosystem, you’re leaving leverage on the table. PE firms are the quiet operators in tech. Their networks move fast, deep, and with intent. Start treating them like partners…not just shareholders. cc: Partnership Leaders

Leveraged Buyouts (LBOs) 101: Things Every Aspiring IB Analyst Needs to Know If you are preparing for a role in Investment Banking or Private Equity, there is one concept you must master—>the LBO Here’s a breakdown for clarity and interviews What is an LBO? - An LBO is when a company is acquired using a significant amount of debt (leverage). - The idea is simple: use a small portion of equity, borrow the rest, buy the company and let the company's own cash flows pay down the debt over time. It's like buying a house with a mortgage —>but instead of living in it, you are trying to improve its value and sell it for more. Key Elements of an LBO Model: 1) Purchase Price Assumption – How much are we paying? 2) Debt Structure – Types of debt used (senior, mezzanine, etc.) 3) Operating Projections – Revenue, margins, and free cash flow 4) Debt Paydown Schedule – How and when the debt is repaid 5) Exit Assumption – Sell the business after 3–7 years 6) Returns Analysis – Typically measured by IRR and Cash-on-Cash Multiple What Makes an LBO Attractive? 1) Stable cash flows to service debt 2) Low CapEx needs 3) Potential for margin improvement or cost cutting 4) Asset-rich businesses for downside protection Keep these things in mind while preparing for interviews 1) Can you walk through a basic LBO model? 2) What levers impact IRR the most? 3) What happens if exit multiples compress? 4) How does leverage affect returns? 5) What risks does debt introduce to the structure? If you’re aiming for PE or IB, understanding LBO becomes critical to crack and perform in such roles Similar Posts on this 1) LBO Mechanics – Understanding the structure and the debt game https://lnkd.in/dbAmE2vE 2) 3 reasons why LBO is the mother model for any Investment Banking Professional https://lnkd.in/dus-PXWv 3) LBO - The need, the Ideal LBO Candidate & the Drivers of the LBO model https://lnkd.in/d9rAMbFU Follow Pratik for Investment Banking careers and education

There's a consistent theme in many of the conversations I'm having in the industry... many businesses are wrestling with the invisible weight of technical debt, while others in the industry are pulling away. At the heart of this is legacy systems, fragmented IT, and siloed upgrades that undermine innovation and ROI. Our latest research with Enfuse Group | B Corp™ reveals a stark reality where digital transformation has become a key battleground for survival. Successful businesses are increasingly defined by agility, scale and speed, which is widening the performance gap. Our research found that businesses investing in their digital transformation the longest plan to invest an average of £66m in digital transformation over the next 2–3 years, compared to just £17m among early-stage companies. Underlying this paralysis is tech debt, which has become a silent value destroyer. Fragmented systems, disconnected data, and under-investment in IT infrastructure are now the biggest barriers to transformation, driving ROI challenges and stalling scalability. We found that early-stage businesses focus on customer-facing improvements, while those who have been longer in the game are investing heavily behind the scenes in AI, automation, real-time inventory, and data-driven decision-making. This is creating the infrastructure for long-term competitive advantage and in my mind, we're seeing many of the successful businesses leveraging the benefits of significant levels of previous investment. Leadership and culture are critical. Only 22% of businesses say their digital strategy is fully aligned with their corporate goals. Without executive-level alignment and digital fluency, transformation efforts risk staying stuck in pilot mode. For retail and hospitality leaders, the message is clear: 💥 Build digital readiness before scaling investment: robust IT systems, data governance, and workforce capability are critical. 💥 Shift from cost-cutting to strategic investment: leading businesses are using AI and predictive analytics to unlock new revenue streams, improve decision-making, and future-proof their operations. 💥 Treat back-end infrastructure as a growth engine: true transformation happens behind the scenes as without it, customer experience gains will plateau. Download our report here 👇 https://lnkd.in/eSizaBXr

How are Leveraged Buyout (LBO) deals trending globally in 1H 2024? 1. Private Equity (PE) sponsors tapped $36 billion of funding for LBO transactions in the syndicated loan market during 2Q 2024, down from roughly $45 billion in 1Q 2024 and 31% lower than 2Q 2023. > For reference, average LBO transaction activity stood at $50 billion per quarter in the 10 years through 2021. 2. In the battle between syndicated loans vs. private credit, nearly 90% of 2Q 2024 deals were funded in the latter, maintaining the dominance of private credit financing when measured by deal count. > With the expansion of private credit that historically has focused on smaller-sized deals, there has been a reduction in smaller-size LBO transactions within the syndicated loan markets. 3. Given the challenging exit environment limiting the ability of PE firms to realize profits from portfolio sales, sponsors have looked to extract dividends instead. > 1H 2024 brought a steady pace of loan issuance to fund dividends. A total of $35 billion of institutional loan issuance funded dividend recapitalizations outpacing 1H 2021, a record-year. 4. A shift in risk tolerance is evident, as fewer companies with riskier B-minus ratings came to syndication. > In 2Q 2024, only 15% of LBO borrowers carried a B-minus rating, or a rating on the cusp of triple C. This was down from 36% in 1Q 2024. > Pre-rate hikes, in 2021, the B-minus share of deals was 56%. 5. At 2.37x, interest coverage for newly minted transactions financed in the leveraged loan market in 1H 2024 was nearly unchanged from 2023, which booked the lowest annual reading since 2007, at 2.36x. 6. Leverage (Total Debt/EBITDA) levels increased in 1H 2024 to 5.3x, from 4.9x in 2023. > Higher leverage levels have allowed equity contributions for LBO transactions to ease from a record high in 2023. > PE firms were forced to offer an equity infusion of more than 50% of the funding mix in 2023. In 1H 2024, the average equity contribution fell to 47%. 7. Finally, higher valuation multiples are squeezing LBOs at a time when the cost of debt capital remains high. > The avg. Enterprise Value/EBITDA multiple rose to 11.1x in 1H 2024 from 10.8x in 2023. High LBO demand signals dealmaking potential. Krishank Parekh | LinkedIn | LinkedIn Guide to Creating #LBO #global #volumes #syndicatedloans #privatecredit

Across industries, clients are sharing with me that something quiet, yet significant, is unfolding in boardrooms: strategic planning is being fundamentally rethought, not just refreshed. Two signals are driving the shift: 1️⃣ Corporate Restructuring Is Accelerating Kraft Heinz’s decision to split into two companies is just one recent example. We're seeing more leadership teams acknowledge that legacy structures built for scale may now be barriers to growth: nimble entities are far more adaptable in uncertain times. In my own practice, I’m currently working with a large-scale healthcare executive client reorganizing around service-line profitability (not geography), and a fintech firm exploring spinouts to unlock value in client-driven capabilities. Clarity is the new currency and leading strategy discussions. Exclusionary growth-oriented strategies are passe. 2️⃣ Capital Markets Are Opening Back Up Another observation is that IPO momentum is returning. Axios recently reported up to 60 IPOs are expected before year-end. Klarna, Gemini, and others are moving forward, and even mid-market firms are reevaluating M&A plans. One client postponed a deal this summer, not because of funding obstacles, but to sharpen their investor story in light of the competition. The most impactful shift? Strategic planning itself is being rebuilt. Traditional planning models are losing trust and relevance. In today’s politicized and noisy environment, many of my clients are curating their own data ecosystems. Some have added “noise filters” to adjust for narrative manipulation. Others are shortening cycles from annual to rolling 6–9 months. Here are 3 practices I’m seeing among forward-looking orgs: ✅ Scenario Loops over Static Models Dynamic updates based on volatile indicators (commodities, regulation, consumer trust) guide real-time adjustments. ✅ Strategy + Structure Are Now Linked One tech firm redesigned its org chart during its strategy retreat, not 6 months later. ✅ Investor Storytelling Is Part of Planning Especially for firms near funding or IPO, strategic planning now includes a messaging track. My O&G CFO client called it their “Investor GPS.” As you prepare for your next planning cycle, ask: ·       Is our structure aligned for where we’re going, not just where we’ve been? ·       If the capital window opens, are we ready? ·       Are we telling a story the market believes? In 2026, strategy is more abut being directionally clear, structurally agile, and ready to move. #ExecutiveLeadership #StrategicPlanning #CapitalMarkets #IPO #CorporateRestructuring #2026Strategy #BoardLeadership