Hugh MacArthur, Chairman of Global Private Equity Practice, Bain & Company
In this episode of M&A Science, Hugh MacArthur joins us to discuss the evolution of private equity over the last three decades—from the early days of deal-making and bespoke financing to today’s hyper-competitive, tech-driven landscape.
Hugh shares how Bain’s private equity practice scaled from an entrepreneurial idea to one-third of the firm's global business and dives into what differentiates top-performing firms. We explore sourcing strategies, value levers, post-acquisition success, and how PE firms are adapting to rising interest rates and new technologies like AI.
Things you will learn:
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How Bain & Company built and scaled its private equity practice from scratch
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The shift from margin improvement to growth-oriented value creation strategies
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How private equity firms are evolving sourcing and financing models
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The future of deal execution using AI and specialized data tools
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Episode Chapters:
[00:01:30] – Hugh’s background and the founding of Bain’s PE practice
[00:03:00] – Evolution from buyouts to a broad private assets approach
[00:04:30] – Bain’s entrepreneurial origins in private equity
[00:07:00] – Commercial due diligence: Bain’s unique differentiator
[00:12:30] – Market valuation trends and EBITDA multiples over 30 years
[00:14:30] – Industry sector evolution: from industrials to tech and healthcare
[00:20:00] – The impact of software and growth on value creation
[00:22:30] – Changes in deal sourcing: proprietary to competitive
[00:24:30] – Rise of private credit and changes in deal structuring
[00:29:30] – Value creation strategies: growth vs. cost-cutting
[00:33:00] – Buy-and-build strategies and integration challenges
[00:55:00] – Role of AI and advanced analytics in deal execution
[01:00:00] – Growth of private markets and increased retail access
[01:04:00] – Common mistakes PE firms make during acquisitions
