Private Equity- Leveraging Off shoring
There are tremendous benefits that PE firms can derive from off shoring especially of high end work in the research and finance area. In our experience the investment research area is a very good starting point.. This is often performed by the analysts/associates in the PE firm.
Our experience of engaging with a PE firm shows that an analyst/associate spends roughly 40% of time in offline activities relating to research (often viewed as noncore). Following is a typical break down
a. Identifying company leads (5%)
b. Screening and evaluating investment opportunities (20%)
c. Industry research (10%)
d. Developing best practices in origination (5%)
However given there are constant pressures on deal related activities and the fact that within the firm this is viewed , as lower priority, associates and analysts within a PE firm find it difficult to maintain level of quality and consistency in these activities.
By off shoring this activity the PE firm can derive several benefits such as consistent quality due to the deeper domain expertise, better knowledge management and transparency in the amount of time spent to get this work done.
