Assertion certainty 4/5 debate potential 2/5

Most Private Equity Firms Outsource Operational Analysis to External Consultants

Steve Pagliuca · Celtics Owner Steve Pagliuca: What Went Wrong with the Chelsea FC Acquisition | 20VC #976 · 20VC with Harry Stebbings · Feb 11, 2023 · at 25:34

Steve Pagliuca is Senior Advisor and former Co-Chairman at Bain Capital. He explains how Bain Capital's internal consulting approach differs from other private equity firms.

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“In fact, most of the industry is adopting that now. They hire Bain and Company McKinsey to do what we do internally at Bain Capital.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Steve Pagliuca

Insight
Buying Market Share With Cash Fails for 90% of Businesses
“There's just been a lot of overinvestment in that philosophy, saying a hoard of cash and buying market share can get you a great business at the end, and that is just not true for 90% of the business.”
Steve Pagliuca Feb 11, 2023 ▶ 16:39 Celtics Owner Steve Pagliuca: What Went Wrong with the Chelsea FC Acquisition | 20VC #976 · 20VC with Harry Stebbings
Prediction Held up
Tech Downturn Won't Trigger a 2008-Style Systemic Crisis, Says Steve Pagliuca
“The positive side of this is all equity dollars, mainly invested. Where you go to a real problem, the crash of 2008 was, you know, based on, on just too much leverage everywhere. When that leverage gets pulled out, you have a crisis. Equity dollars are just lo…”
Steve Pagliuca Feb 11, 2023 ▶ 17:08 Celtics Owner Steve Pagliuca: What Went Wrong with the Chelsea FC Acquisition | 20VC #976 · 20VC with Harry Stebbings
Disclosure
Steve Pagliuca Dropped Chelsea Bid After Sellers Permitted Debt and Raised Price
“And we had a group that, that came up with that money, and what was a very rich price, and unfortunately at the last minute they went away from that model, and they allowed debt to go in the business, and they asked for a much higher price than what we were ta…”
Steve Pagliuca Feb 11, 2023 ▶ 44:41 Celtics Owner Steve Pagliuca: What Went Wrong with the Chelsea FC Acquisition | 20VC #976 · 20VC with Harry Stebbings
Insight
Success in Private Equity Requires Having an Ego, Says Steve Pagliuca
“You can't be successful in this business without an ego.”
Steve Pagliuca Feb 11, 2023 ▶ 8:44 Celtics Owner Steve Pagliuca: What Went Wrong with the Chelsea FC Acquisition | 20VC #976 · 20VC with Harry Stebbings
Disclosure
Internal Employees Contributed Over $1B to Bain Capital's $12B Fund
“Where let's say our last twelve billion dollar fund over a billion of capital has come from all the people in the company. And that, that is, you know, a hundred times more in terms of percentage than most of the investor firms out there.”
Steve Pagliuca Feb 11, 2023 ▶ 25:58 Celtics Owner Steve Pagliuca: What Went Wrong with the Chelsea FC Acquisition | 20VC #976 · 20VC with Harry Stebbings
Assertion Not checkable as stated
The Boston Celtics Have the Most Executive Continuity in Sports
“We've had the most continuity of any sports franchise”
Steve Pagliuca Feb 11, 2023 ▶ 35:35 Celtics Owner Steve Pagliuca: What Went Wrong with the Chelsea FC Acquisition | 20VC #976 · 20VC with Harry Stebbings
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