Tesco
A Mile Wide or a Mile Deep?
Report

A Mile Wide or a Mile Deep?

The Diversification Opportunity Facing Private Equity

Antoon Schneider, Jens Riedl and Jeanne Chen
Boston Consulting Group, 2015
Get the Report

Read or listen offline

automatisch generiertes Audio
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
automatisch generiertes Audio

Editorial Rating

8

Qualities

  • Innovative

Recommendation

Several large private equity (PE) firms have widened both the scope of their activities and the volume of their assets under management through diversification. But expansion is not necessarily a panacea for all PE firms, and some may be better off remaining “pure-play” shops in a particular area. Consultants Antoon Schneider, Jens Riedl and Jeanne Chen of the Boston Consulting Group succinctly lay out the trends in private equity and what they mean for PE firms and their investors. getAbstract recommends this instructive article to financial services professionals and private equity specialists.

Take-Aways

  • Some large private equity (PE) firms have taken a number of different routes to diversification, while lessening their positions in leveraged buyouts (LBOs).
  • Several factors have prompted PE firms to diversify, among them the “search for growth,…the synergies achievable from being present across different alternative-asset classes and demand from fund investors.”
  • After 2008, as LBO fund-raising lagged, PE firms sought new ways to increase assets under management.

About the Authors

Antoon Schneider, Jens Riedl and Jeanne Chen are professionals with the Boston Consulting Group.

Comment on this summary or Diskussion beginnen