The Role of Private Equity in Business Growth
                     T H E  R O L E  O F  P R I V AT E  
E Q U I T Y  I N  B U S I N E S S  
G R O W T H
INTRODUCTION
Pr i vate  equ i ty  funds  are  fac ing  more  compet i t ion  than  
ever  be fore  –  mak ing  fi nd ing h igh-qua l i ty  inves tment  
oppor tun i t ies  (a t  reasonab le  va luat ions )  an  
inc reas ing ly  d iffi cu l t  cha l lenge .
Source: 4degrees.ai
IDENTIFYING INVESTMENT
To keep up ,  fi rms are  both devot ing more  resources  to  
dea l  o r ig inat ion and becoming more  c reat ive  in  
ident i fy ing  the i r  next  great  i nvestment .
Source: 4degrees.ai
Increasing competition
 Both  due  to  new and exi s t ing pr iva te  equ i ty  fi rms  
becoming more  ac t ive  (2018  had record  dea l  vo lume 
and the  same was expected fo r  2020)
Source: 4degrees.ai
More deal sources to cover
With  a  la rger  than  ever  number  o f  venture  cap i ta l  
fi rms,  i nves tment  banks ,  corporate  deve lopment  
teams,  and propr ie ta ry  dea l  ac t iv i ty
Source: 4degrees.ai
Need for leverage
With  b igger  inves tment  teams and more  por t fo l io  
company work ,  sen ior  management  team members  are  
inc reas ing ly  s t re tched and l ack  the  bandwidth  to  send 
that  next  fo l low-up emai l .
Source: 4degrees.ai
Conferences and 
Tradeshow Coverage
Attend ing  such events  can  be  he lp fu l ,  but  a l so  can  be  
resource -consuming ( t ime and money) .  P lus ,  many of  
these  events  are  loca l ,  whi ch requ i res  s ign ifi cant  
t rave l  to  ach ieve  good coverage .
Source: 4degrees.ai
Intermediary Management
Another  t rad i t iona l  approach (a lbe i t  done  at  d iff er ing  
leve ls  o f  soph is t i ca t ion /eff ec t iveness )  i s  bu i ld ing  a  
robust  ne twork o f  inves tment  bankers  and brokers  to  
source  re ferra l s .  
Source: 4degrees.ai
Digital Marketing
Another  inc reas ing ly  common tac t i c  i s  work ing  w i th  
market ing  resources  to  nurture  ex i s t ing  re lat ionsh ips  
whi le  a l so  c reat ing opportun i t i es  for  inbound dea ls .  
S imi lar  to  i ntermediary  management ,  the re  are  
d iff er ing  leve ls  o f  soph is t i cat ion that  a  fi rm can  take  
towards  the i r  marke t ing  eff orts .
Source: 4degrees.ai
The Firm’s Relationship 
Network
Whi le  the  inves tment  profess iona l s  may spend a  b i t  
l ess  t ime on  dea l  o r ig inat ion w i th  a  bus iness  
deve lopment  team member  on  board ,  they  s t i l l  have  
inc red ib ly  robus t  and re levant  ne tworks  fo r  dea l  
sourc ing.
Source: 4degrees.ai
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