Hugh MacArthur, Chairman of Bain & Company's Global Private Equity Practice, explains the structural methodological differences between corporate management consulting and private equity deal diligence.
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“In corporate consulting, You tend to look at a company from the inside. They hire you. You get all of their data. You figure out where their opportunities and their problems are, and you try to solve them. Well, in the private equity world, it's different. You're looking at a target. You don't have all of their data. You're looking very much at external data to try and understand how fast is the industry really growing, and what's pricing going to do, and do customers like you better than the competitors or not?”
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More from Hugh MacArthur
PredictionNot checkable as stated
MacArthur: The private equity liquidity deficit will take 5+ years to resolve
“So we're talking about a five plus year problem as the GFC was in order to process all of this liquidity. This is not going to go away in 20, 25 or 20, 26. It's going to be continued pressure on the institutional LPs for liquidity over the course of the next s…”
MacArthur: Institutional PE allocations will increasingly become a zero-sum game
“They're going to continue to write checks and invest in private equity, but it's going to be much more of a zero sum game. If I'm going to get an allocation from a certain LP, somebody else is probably going to lose their allocation from that LP.”
MacArthur: Zero buyout funds larger than $5B closed globally in Q1 2025
“There was no fund in the buyout world in the first quarter that closed that was above five billion dollars, which is the first time I can remember that happening in quite a period of time.”
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