Despite the pandemic, private equity funds have announced a record number of buyout deals – more than 5,500 private equity-backed mergers and acquisitions. Private equity and venture capital firms have their hands full, but we expect their operations to scale up even further once a sense of normalcy is established.
Private equity firms would, therefore, have to increase their focus on handling new and ongoing deals and consider outsourcing other critical activities to a reliable partner. A number of dependable private equity consulting firms provide a host of services such as business development, periodic reporting, due diligence studies, monitoring portfolios and exit support.
We list below some leading private equity consulting firms that offer these services:
- Acuity Knowledge Partners (Acuity):
The firm was founded in 2002 and is one of the leading companies in private equity consulting support, especially in areas such as business intelligence and research. It has more than 2,500 dedicated analysts and provides a host of services that add value to private equity operations, such as screening new opportunities, enabling compliance adherence with periodic reporting, generating white papers and portfolio monitoring.
Acuity works across continents, and its quality of services has earned it a place in the CFA Institute’s list of certified analyst training programmes. Acuity, as a private equity consulting firm, has gained success through its understanding of critical underlying issues, including cybersecurity and compliance management. Very few firms have in-depth experience of working with Private Equity and Venture Capital firms across the investment cycle.
- McKinsey & Co.:
McKinsey & Co. is one of the oldest and largest private equity consulting firms in the world. Founded in 1926, it has experience of nearly a century and a management team that has worked and delivered in various financial situations and scenarios.
Primarily a management consulting firm, McKinsey & Co.’s services include advisory services relating to acquisition and M&A. Longstanding partnerships with clients have helped both clients and McKinsey & Co. to grow.
- LEK Consulting:
British consultancy firm LEK Consulting was founded in 1983 and has expertise in corporate strategy, mergers and acquisitions, and operations management, making it one of the top private equity consulting firms.
LEK Consulting has a long history and significant experience in private equity consulting. It provides support at various levels, including identification of attractive companies, commercial due diligence and exit strategies both as an investor and a consultant.
- Bain & Co:
American consultancy firm Bain & Co. has completed almost half a century of providing consultancy services, now in more than 37 countries. It has a vested interest in a number of sectors, providing consultancy services to companies ranging from small startups to large conglomerates.
The company has integrated technology with its private equity consulting as it looks to identify value creation for investors through innovative ideas and companies through its private equity consulting. It is a leading firm in terms of consulting for buyouts, providing services from start to exit for investors.
Private equity consulting firm Mercer has a long and varied history and experience, with a presence in more than 137 countries. Its unique expertise in human resource consultancy positions it well in the field of private equity consulting.
Mercer provides advisory services in all aspects of the investment cycle, with expertise in post-merger integration, cultural due diligence and company integration. Mercer also provides human capital due diligence as part of its advisory, enabling companies to assess whether their policies are similar.
Demand for private equity consulting is set to increase when the situation normalises. Private equity firms are likely to partner with consulting firms considering the substantial value they offer, but it is imperative that they follow a rigorous process in choosing the correct partner.