Is the Classic Buyout Model Still Working?

Hugh MacArthur, head of Bain's Global Private Equity Practice, discusses the challenges faced by classic buyout funds in the evolving private equity landscape. He highlights the faster growth of specialist funds and the questions mid-sized buyout firms are grappling with regarding their future direction. MacArthur suggests five key areas for these firms to focus on: adopting new products, specializing in specific sectors, leveraging data and analytics, developing a distinctive value creation playbook, and integrating a meaningful ESG strategy. He emphasizes the need for adaptation and innovation to maintain competitiveness and create value in the changing market.