May 8, 2018
In July 2017 Southern Oak Consulting authored an analysis entitled, "Management Consulting's Impact on Private Equity Performance". The analysis used data from the Pitchbook database and revealed that U.S private equity funds who used management consultants for operational performance improvement outperformed the IRR of their peer groups by an average of 1.52% - that's no small number.
As it turns out, our analysis was in good company as a former PE analyst has been actively campaigning to show that PE firms are not really great at operations and turning their portfolio companies in to winners. What are your thoughts on that?
Today we look at the question: Does PE have an operations problem and if so, what can be done about it?