BSG From the Boardroom

Over the past month our principals attended a number of PE conferences ranging from the Women’s Private Equity Summit (WPES) to Buyouts East as well as ACG events where industry leaders shared their perspectives on the industry. Here the Top 10 Takeaways that resonated with us…

• While no one uttered the “bubble” word out loud, there were consistent references to “frothy” prices
• This is a challenge that PE firms are well poised to capitalize on as more than one speaker asserted “we get paid to find pockets of opportunity” across all market conditions
• Deal flow is trending down by about 5% in Q1 2015
• Despite the publicity related to larger deals, 95% of all PE deals were for companies with revenue under $400 million
• Investors were advised to look for opportunities outside traditional areas: Los Angeles vs Silicon Valley for example.
• Consumer-centric companies that target the growing global middle class will thrive
• Many PE firms are looking to extend product suites within their portfolio companies
• Most lower to middle market companies are “starved” for sales/marketing talent
• Diversity now encompasses diversity of thought as well as employees from diverse backgrounds
• Increased regulations and government oversight will continue…

Please share any thoughts you might have on these. We will update this during the year.