Tag Archives: Private Equity Consulting

In the evolving environment of private equity (PE), businesses must be equipped with partners who not only understand the financial nuances but are proficient in navigating the complexities of strategic planning. As we progress into 2025, certain prominent emerging trends and forecast are shaping the industry, evidencing the influential role of consulting services. Here, we discuss how private equity consulting can contribute to your investment strategy.

Understanding Private Equity Consulting

Private equity consulting is now a requirement that offers insights to enable investors to make informed choices, optimize portfolios, and enhance operational efficiency.

Global private equity deal-making reached a 14 percent growth to $2 trillion in 2024 in the Bain & Company Global Private Equity Report 2025, the third-most-active year of the asset class. The growth is a testament to the worth of specialist advising in the context of increased deal flow and complexity.

The Importance of Private Equity Consulting

Private equity firms feel the heat to deliver improved returns. With deal complexity and growth issues, having consultants at every stage of the investment process is invaluable. They bring in experience and fresh thinking, ensuring well-informed decisions are taken that maximize profitability and growth.

But recent trends depict a mixed scenario. While dealmaking increased in 2024, fundraising declined. Fundraising in private asset classes fell for the third consecutive year, reaching $1.1 trillion in 2024—24% less than in the previous year and 40% below the 2021 peak, according to Bain & Company. The decline is a reminder of the need for strategic direction in coping with a challenging fundraising environment.

Key Services Provided by Private Equity Consultants

Due Diligence and Risk Evaluation

The consultants help the investors in assessing potential investments via thorough due diligence, comprising financial review, market analysis, operational audits, and risk analyses. Bain & Company highlights in the 2025 Global Private Equity Report that rigorous due diligence is essential in a competitive market where seeking value amidst economic uncertainties is of prime importance.

Mergers and Acquisitions (M&A) Advisory

Private equity advisors are central to recommending acquisition targets, structuring deals, and negotiating. They also help with post-merger integration, ensuring acquisitions support strategic objectives and realize maximum value. In 2024, U.S. private equity activity picked up, with deal volumes and values much greater than in the prior year. This recovery underscores the value of specialist advisory services in realizing M&A potential.

Portfolio Management and Optimization

Consultants assist PE companies in optimizing portfolios by determining areas of improvement, streamlining operations, lowering costs, and finding growth opportunities. They offer actionable advice on how to increase the value of portfolio companies and aid in restructuring or repositioning companies to suit market needs.

The 2025 Global Private Equity Report states that with stabilization of economic conditions, there’s increased emphasis on improving operations within portfolios in order to generate returns.

Exit Strategy Planning

Upon exiting investments, there is a need for carefully thought-out strategy to ensure optimum return. Consultants walk companies through procedures such as sales, IPOs, or secondary buyouts, positioning portfolio companies to receive highest possible prices.

Private equity exits rose to $902 billion in 2024, from $754 billion in 2023, but remain below pandemic highs. With more funds reaching the end of their life cycles, the need to return capital to investors grows, and strategic exit planning becomes crucial.

Emerging Trends in Private Equity Consulting

Emerging Trends in Private Equity Consulting

Shift towards Operational Value Creation

In 2025, the focus is radically redirected away from financial engineering in the past to value creation through operations. Private equity firms are increasingly looking to increase the operational efficiency of their target firms. This implies establishing strategic initiatives aimed at driving growth and profitability. Consultants are the force behind highlighting inefficiencies and suggesting enhancement to operate the business more efficiently.

Artificial Intelligence (AI) Integration in Investment Strategies

The combination of machine learning and AI is turning into a cornerstone in investment strategies. The technologies assist in analyzing data, predicting market trends, and sensing investment opportunities. Private equity organizations are leveraging AI to be competitive, and consultants have a significant role in implementing the technologies effectively.

Emphasis on Environmental, Social, and Governance (ESG) Factors

There is more emphasis on ESG factors in investment. Investors increasingly seek opportunities that enable sustainable and ethical conduct. Companies are being assisted by consultants to develop frameworks for assessing and integrating ESG factors into their investment process, with a focus on compliance and reputation management.

Emergence of Add-On Acquisitions

Add-on acquisitions are becoming increasingly popular as a vehicle to increase portfolio company values. By acquiring smaller, complementary companies, companies can pursue growth and operational synergies. Consultants assist in the targeting of suitable targets and the completion of these transactions.

Growth in Distressed Asset Investments

Financial uncertainties have promoted growth in distressed asset investments. Private equity investors are taking maximum advantage of acquisitions of under-priced assets with the possibility of a turnaround. Restructuring experts have a critical role to analyze such opportunities and come up with turnaround plans.

Strategic Forecasts for 2025

Strategic Forecasts for 2025

Picking up Deal Activity

Anticipations are for further increase in deal activity through to the year 2025. Companies are working hard to seek investment, especially in industry areas that prove to be growth-focussed and robust. Advisors are given deals sourcing and thorough due diligence to secure alignment at the strategic level.

Growing Commitments to Private Equity

LPs are also demonstrating increased hunger for private equity, with 30% of LPs surveyed recently expressing a desire to boost allocations within the next 12 months. This is prompted by the diversification and strong return capabilities of the asset class. Consultants are of very important assistance to LPs in terms of portfolio construction and manager selection.

Emerging Markets Growth

Private equity grows to be more drawn to emerging economies. Emerging economies have the promise of growth because they possess developing consumers and novel infrastructures. Internal market experts offer insightful perspectives into the true nature of these markets and help with the ability to navigate in regulation arenas.

Alternative Financing Mechanisms Development

Other forms of funding, including private credit and secondary transactions, are on the rise. These enhance flexibility and access to alternative sources of capital for companies. Negotiation of these transactions and their effects on overall investment strategy falls within the purview of consultants.

Emphasis on Restructuring and Turnaround Strategy

During market volatility, there is greater demand for turnaround and restructuring efforts. Private equity sponsors are hiring consultants to assist distressed portfolio companies and release value through strategic actions.

Conclusion

As the private equity landscape continues to evolve in 2025, consulting services have become more integrated than ever. Trends and projections described above emphasize the fast-paced character of the industry and the need for expert advice. Private equity consultants are not merely consultants but strategic allies, helping firms to steer through complexities, capitalize on opportunities, and realize sustainable growth in a competitive market.

Through the services of expert consultants, firms can gain determination and analytical support for all their decisions. From due diligence, guidance on a M&A transaction, or development of an exit strategy, consultants offer the expertise private equity firms require to be successful in the current competitive marketplace. As the private equity market develops, turning to the wisdom of seasoned advisors will continue to be a major influence on success and maximizing returns for investors and portfolio companies alike.

About Magistral consulting

Magistral Consulting has helped multiple funds and companies in outsourcing operations activities. It has service offerings for Private Equity, Venture Capital, Family Offices, Investment Banks, Asset Managers, Hedge Funds, Financial Consultants, Real Estate, REITs, RE funds, Corporates and Portfolio companies. Its functional expertise is in Deal origination, Deal Execution, Due Diligence, Financial Modeling, Portfolio Management and Equity Research.

For setting up an appointment with a Magistral representative visit www.magistralconsulting.com/contact

About the Author

The article is Authored by Marketing Department of Magistral Consulting. For any business inquiries, you could reach out to prabhash.choudhary@magistralconsulting.com

How Private Equity Consulting Can Enhance Your Investment Strategy

Private equity consulting provides strategic insights to investors, helping them make informed decisions, optimize portfolios, and improve operational efficiency. As deal complexity and competition increase, consulting services play a crucial role in maximizing profitability and ensuring successful investments.
Private equity consultants assist with due diligence, mergers and acquisitions (M&A) advisory, portfolio management, and exit strategy planning. They help investors assess risks, streamline operations, and navigate complex transactions to enhance investment value.
It ensures firms stay agile, mitigate risks, and maximize investment returns in a rapidly evolving financial landscape.
AI and machine learning are being used to analyze market data, predict trends, and identify investment opportunities. Consultants are helping firms integrate AI into their strategies to enhance decision-making and maintain a competitive edge.
A well-planned exit strategy ensures that investments yield the highest possible returns. Consultants help firms execute sales, IPOs, or secondary buyouts, positioning portfolio companies for successful exits in a competitive market.

Introduction

Private Equity (PE) consulting has been around for a while. Many consulting firms have practices offering private equity consulting services. It is interesting to note that even global consulting firms rely on offshoring to a great extent to deliver value to private equity clients on their most pressing issues. Offshoring reduces costs of consulting firms and some of it must be passed onto the clients (we hope!!). But what if all the advantages of offshoring could be passed onto the clients directly?

Read further to know more!!

Private Equity Consulting and Offshoring: Why it’s a match made in heaven?

Management Consulting as an industry has been around for more than 100 years on the back of its solid value proposition for clients. It brings in expertise, experience, political leverage, data sources, network, and usually signs business outcome-based projects with the clients. Usually, benefits outweigh the costs by 3X to 10X.

Private Equity Consulting and Offshoring

Private Equity Consulting and Offshoring brought together

Offshoring also picked up with the advent of the internet. As the work was possible with the help of the internet and advanced communication options, offshoring started to make sense for low-end jobs like call centers and data entry. It was followed by IT and now it is the turn of high-end research, analytics, and consulting jobs. The value proposition of offshoring is cost efficiency and scale. In most cases, offshoring also results in improvements in terms of quality and delivery apart from cost-cutting.

When we combine the forces, we have the impact of consulting with the cost advantages of offshoring, making it an unbeatable value proposition for clients in their marketplace. Management consulting overheads like weekly flights for consultants, high-end hotels for stay, and highly-priced consultants, all of which are paid by the clients are reduced by remote working and service delivery. At the same time, task offshoring to a group with all the expertise in a given industry brings a scale that can be taken advantage of, by smaller clients.

Business Outcomes for Private Equity Industry and the Services Offered

Major work streams at all private equity companies, big or small, comprise of following workstreams:

Fundraising and marketing or investor relations

Deal origination

Deal execution along with due diligence; and 

Portfolio management to get into the operational details of portfolio companies to make it more valuable

Private Equity Consulting Business Outcomes

Private Equity Consulting Business Outcomes

Magistral's Service Offerings for Private Equity

Magistral’s service offerings for Private Equity

Here is how Private Equity consulting helps in these workstreams

Fund Raising and Marketing/ Investor Relations

A fund is established when it has a healthy pipeline of potential investors apart from the existing ones. This is the area where most emerging managers struggle. The game does not even start if the firm is not able to raise the angel fund. However, like everything else in life, robust results need time and consistent efforts. PE consulting helps reach out to the investors and maintain a continuous touch-point to drive home the value proposition of the fund and thus enable successful fundraising rounds.

 

The services that help in fundraising are

Fundraising documentation

Fundraising requires a lot of documentation. Sometimes it could be enormous for an emerging manager. At the same time, it needs to be streamlined for established managers. Magistral helps prepare documents like Private Placement Memorandums (PPMs)/ Confidential Information Memorandums (CIMs), pitch decks, financial models and projections, teasers, and strategy and marketing documentation.

Investor profiling and reach-out

Funds specializing in different areas have different ideal profiles for investors or limited partners. Magistral helps in profiling and reach out to these investors. Magistral also has an in-house database that carries leads of more than 15000+ Limited Partners (LPs) and General Partners (GPs). It can also access databases of other players if the task needs it.

Design and Data Support

Magistral has an in-house design team that streamlines the PowerPoint designs and makes them consistent with the global marketing standards. It’s like we receive the content in raw form, sometimes scribbles from a notepad or whiteboard, and the output is a well-designed PowerPoint that could directly be sent to investors. Similarly, pitch decks and PPMs could also be designed to look more powerful visually. Likewise, data could be streamlined related to investors or CRM systems that the clients use.

Newsletters

Multiple touch-points with investors mark content like Newsletters, PoV documents, Industry reports, and market research. Magistral has experience working with hundreds of clients working on these assignments. It has access to resources like secondary sources, interviews with the panel of experts, and triangulations to come up with market sizes, etc. Worthy content establishes the authority of the Private Equity fund in the eyes of accredited investors.

Sustainable Investment and Impact Assessment

We have a specific service offering around ESG analysis, sustainable investments, and impact assessments of the current or potential assets acquired by the Private Equity firms.

Deal Origination

Deal origination services make sure that the focus of the GP is on the suitable targets and populate the deal pipeline with more appropriate deals, to be taken up as and when required. Picking up the right deals is the lifeblood of PE operations. It’s by picking up the right deals that a GP can offer superlative returns to its LP investors. Magistral helps with Deal Flow support and Inbound deal flow analysis.

The deal origination related services offered are:

Industry tracking and landscaping

A Private Equity firm needs to scan the environment for investing continually. It needs to track its key markets, geographies, and industry regularly to take advantage of emerging trends. Magistral has helped multiple clients in tracking industries like healthcare, SaaS, blockchain, cybersecurity, heavy engineering, and many others.

Potential target identification

A list of suitable potential targets is generated using secondary and primary sources. As per the investment thesis, the targets satisfy a host of customizable criteria like revenue, profits, employees, industry, geography, and being open for investments. Secondary sources include databases, whereas primary sources are industry associations, accelerators, angel investor groups, etc.

Target company profiling

Once the list is generated for potential targets, the next step is to shortlist the companies of interest and go for a deeper dive.  A target company is profiled for its business details, strategy, latest developments, management, SWOT, Porter’s 5 forces, and other customized information. Understanding the openness of the company for an investor on the board is also studied at this stage.

Target pipeline management

For deals to be continuously happening, the pipeline needs to be populated continuously. There should be deals in all stages of deal-making. That is ensured by filling the targets in the funnel on an ongoing basis.

ESG Analysis

ESG or impact analysis is more critical than it was ever before. It’s imperative then that Private Equity firms evaluate the deals for ESG fitments. A company that performs better on ESG frameworks is a more sustainable investment and makes a far-reaching impact on the society and communities it serves.

Inbound deal flow management

If a firm receives lots of inbound inquiries, there needs to be an agency to sort out the worthy opportunities from the non-serious ones. Magistral matches the opportunities with the GPs investment thesis and brings forward the best deals.

Summarizing and preparing IMs:

If start-ups send IMs, the same need to be summarized for discussion with the investment committee. Magistral summarizes the Investment memos into investcomms decks for quick and effective decision making.

Deal Viability Analysis: This involves getting into the nitty-gritty of a deal, identifying red flags both inside out and outside in, to make sure the deal produces the impact, which is the aim of the investment to start with. This is achieved from the exhaustive and comprehensive market and company research.

Deal Execution and Due Diligence

Deal execution and due diligence ensure the right investment decisions to produce significant returns, identifying risks for better planning post-investment or M&A.

Here the services are about providing all the foresight and intelligence to make the right decisions. The primary service offerings here are:

Target company due diligence

Here, Magistral takes access to the data rooms and analyses the information to produce highly relevant deliverables and insights. Due diligence includes financial, operational, and ESG related aspects of a firm. Magistral works with both Private Equity firms and Investee companies. It prepares Due Diligence Questionnaires (DDQs) and collects information from the investee companies, either directly or indirectly.

Industry Research

Here, industry research is more specific and has to do with the target company’s operations. The industry in which the target operates and details like trends, SWOT, Porter’s five forces, key competition, pricing trends, news. etc. are captured to provide a holistic view about the industry in which the target company operates

Detailed company profiling and competitive intelligence

In this stage of the company profile, details are captured from multiple sources like ex-employees, management, existing employees, vendors, competition, investors, and industry stakeholders. Also, information related to competition and their strategy is captured using primary and secondary sources.

Investment Memorandums

If the investment needs to be made with other co-investors, standard documentation is applicable like Investment Memorandum, Confidential Information memorandum, Pitch Deck, and Financial Models.

Modeling and Valuations

This exercise ensures that deal is made at the right prices so that there is a significant upside for the investment returns. Magistral has prepared 100+ financial models for valuations in industries like SaaS, tech, healthcare, IT, manufacturing, B2C retail, fashion, chemicals, and e-commerce. Here the information and assumptions required to prepare a financial model are captured from detailed discussions with the client. The models in which Magistral has expertise include and are not limited to 3 parts financial models, LBO analysis, DCF modeling, Real Estate modeling, precedent transaction analysis, comparable analysis, and impact analysis.

Portfolio Management and Fund Management

Portfolio Management aims at maximizing the value of the investment in a company by a Private Equity firm. This is achieved by supporting various tasks of the acquired company to reach more customers, hence improving revenue or reducing operations’ costs. Fund Management is about streamlining the functions of the fund itself to focus on the core tasks of investing and fundraising.

Here the services are:

ESG Compliance Monitoring

Magistral, after assessing the ESG maturity of an investee company, suggests a set of metrics monitored periodically after the investment is made. The data is collected on these metrics and reported to the board and management along with investors every quarter.

Outsourced CFO

Outsourced CFO services are relevant for both funds and the portfolio companies, specifically in the cases where the PE firm invests in start-ups or smaller firms. These companies may not be in a position to invest in a full-time CFO and thus may go for an outsourced CFO that is fractional and provides the operational and cost flexibility. Sometimes Financial Process and Accounting could be outsourced, while CFO could be kept in-house. These tasks include accounting, bookkeeping, administration, procurement, and preparation of financial statements

Outsourced Fund Administration

This service is specifically for funds and takes care of all the administrative aspects of the fund like fund accounting, expense monitoring, trade reconciliation, distribution waterfalls, taxes, fees, incentives, expenses, etc.

Strategy and Business Development support

After the investments, most PE firms focus on growing the revenues of the portfolio companies. This is done through a slew of interventions on strategy and marketing. Magistral supports these activities by providing services like consumer and market studies, new product or market development, lead generation, which is critical in the B2B space, and finding follow-on acquisition or buyer for the investee companies.

And this is how Private Equity consulting joins forces with offshoring to provide an unbeatable competitive advantage for our clients.

About Magistral

Magistral Consulting has helped multiple funds and companies in outsourcing operations activities. It has service offerings for Private Equity, Venture Capital, Family Offices, Investment Banks, Asset Managers, Hedge Funds, Financial Consultants, Real Estate, REITs, RE funds, Corporates and Portfolio companies. Its functional expertise is around Deal origination, Deal Execution, Due Diligence, Financial Modeling, Portfolio Management and Equity Research

For setting up an appointment with a Magistral representative visit www.magistralconsulting.com/contact

About the Author

The Author, Prabhash Choudhary is the CEO of Magistral Consulting and can be reached at Prabhash.choudhary@magistralconsutling.com for any queries or business inquiries.