Generating alpha: value drivers in private equity
In this short video, Partner, Jim McDonnell explores where private equity investors are finding alpha in today’s market and how value creation thinking is evolving.
With more capital chasing fewer deals, traditional levers such as financial engineering and cost reduction are often insufficient on their own. Investors are increasingly seeking a clearer view of where value truly sits within a business, and where risks could undermine returns.
As deal timelines compress, there is a growing emphasis on identifying value drivers earlier. A well-formed investment thesis, grounded in commercial insight, is becoming a differentiator, not just to win deals, but to accelerate value creation from day one.
Commercial upside is often underexplored. Understanding which products and channels drive profit, how pricing can unlock growth, or where commercial effectiveness can be improved can make a material difference in tougher markets.
Generating alpha often starts with clarity on where a business can outperform.
If you would like to discuss how value drivers are shaping private equity returns today, please get in touch.
