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It is notable that taking a strategic approach to integrating ESG at the core of a business can drive competitive advantage across several metrics (sustainable product development, employee retention, operational efficiency, etc.). The four key pillars of ESG value creation identified in the article can put a firm ahead across sectors: Operational Excellence, Market Leadership, Risk Intelligence, and a Future-Ready Culture. With ESG as a driver of value creation, not just a compliance exercise, you are prepared to capture emerging opportunities. https://lnkd.in/gzhFJ4gw

The WEF-IBC project and its metrics lay the groundwork for a global standard in ESG reporting. The significant backing for this project, along with the private sector's efforts to implement these metrics, show a growing agreement that lasting value comes from addressing the needs of various stakeholders. https://lnkd.in/gwiq-qwT

How important is selecting the right logistics provider for long-term growth and profitability? How about the right broker who can ensure providers are capable of serving your desired locations and can offer negotiated rates to minimize costs while ensuring reliability? Building a trusting relationship with a logistics partner and broker who values relational currency and understands your unique challenges is essential for sustainable growth. By considering these factors, businesses can make informed decisions that support their logistics needs and overall objectives. Vertus' GPO contract services provide a material savings on common indirect spend categories, including LTL. At Vertus 90% of our clients recognize savings. https://lnkd.in/gsjb47yB

There is a notable pivot to operational efficiency in private equity, emphasizing the importance of operational value creation and enhancing collaboration between deal and operating teams. Here are a few standouts from the summery about future due diligence and GTM models: Accordian - Revisit the Value Creation Plan (VCP): Identify "did nots" from the seller's original VCP that can drive immediate EBITDA growth. SBI - Shifting Focus to EBITDA: With demand volatility and uneven recovery, CEOs and investors are placing greater weight on profitability (EBITDA) over growth, pushing back expectations for a rebound until late 2024. At Vertus, we look for opportunities within your current vendor construct for value creation opportunities. Providing material EBITDA improvements. https://lnkd.in/gqiTjzXb

What is the significance of strategic sourcing to your firm? There are essential aspects that identify value, specifically: Specifying Critical Goods and Services: Identify items with significant spending and those needing special attention to align with strategic goals.  And Relationship Management: Maintain and enhance relationships with suppliers of critical goods and services, considering factors such as resource consumption. Whether you are looking for a trusted partner to drive efficiency within your portfolio or are looking for a quick optimization review in a specific category. Vertus is here to support your journey. https://lnkd.in/gHYCzddT

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A great article by E&Y delving into key trends in PE, emphasizing ESG's critical impact on value creation, and highlighting the importance of AI as a top priority. Check it out here: https://lnkd.in/gjjivJVg

A great article on how private equity firms can drive value in portfolio companies by focusing on leadership performance. It highlights the importance of aligning leadership teams with strategic goals and leveraging structured approaches like Strategic Team Coaching to boost collaboration and results. By enhancing leadership effectiveness, firms can achieve stronger enterprise value and higher ROI. 

Check out this insightful podcast featuring Badeep Dhaliwal from KKR discussing the role of GPOs as value drivers in private equity procurement. Some great points included Private equity success relies heavily on strategic procurement and engaging with portfolio companies to drive value creation. Measuring procurement impact involves tracking improvements in EBITDA, Capex reductions, and cost avoidance through precise data analysis. Establishing strong GPO relationships is crucial for optimizing cost, quality, and performance across portfolio companies, leveraging scale for added value. #Procurement #PrivateEquity #ValueCreation #SupplyChain #GPOs #CostOptimization

Two noteworthy research findings: “In 2024, PE firms are increasingly targeting retail investors who are drawn to the resilience of the asset class, the diversification it offers, and its performance compared to public markets. It’s particularly attractive to high-net-worth individuals and quasi-retail investors. Private equity firms are actively pivoting towards these investor groups, navigating regulatory complexities with innovative approaches. They are increasingly utilizing structures like access funds and feeder structures established by third-party intermediaries to tap into this expanding capital base. This shift is expected to intensify throughout the year. Private equity firms are also capitalizing on the opportunities presented by registered investment advisor (RIA) companies. This move reflects the growing interest of retail inflows as a source of new funds.” “Generative AI in particular is showing potential to transform and accelerate deal activity. GenAI-powered tools can summarize vast amounts of data to help analysts select the right deals more quickly. They can develop alpha-generating resources such as deal sourcing maps and outreach strategies in just minutes, expand narrow or niche lists to include similar acquisition targets, and even help draft correspondence. This all indicates that deal sourcing and analysis will happen at a greater scale going forward, a trend PE firms must keep up with in order to stay competitive. Venture capital will also play a directional role in how AI shapes the business landscape going forward. We’ll likely see continued and steady growth in the number of AI startups winning PE funding as genAI alone is expected to grow at a staggering CAGR of 73% through 2027.” https://lnkd.in/gkq-iJ6b