Capital Allocators – Inside the Institutional Investment Industry Hugh MacArthur – Private Equity’s Challenges and Opportunities (EP.453)
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Jun 23, 2025 Hugh MacArthur, the Chairman of Bain & Company’s Global Private Equity Practice and host of the 'Dry Powder' podcast, shares insights on the evolving landscape of private equity. He discusses Bain's strategies in due diligence and sourcing, along with findings from the latest Global Private Equity Report, highlighting market trends like liquidity issues and AI integration. Hugh emphasizes the crucial role of collaboration between general and limited partners and predicts the winners and losers in the industry’s next era.
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Hugh's Early Career Struggles
- Hugh MacArthur struggled to get hired on Wall Street as a history major and learned humility through repeated rejections.
- He found consulting at Bain exciting and has been there ever since, founding their private equity practice.
Distinct PE Consulting Approach
- Private equity consulting requires an outside-in approach due to limited target data and rapid decision timelines.
- Bain created its private equity practice to offer fast, specialized due diligence unlike traditional corporate consulting.
Tech Evolution in Due Diligence
- Due diligence evolved through technological waves: analog research, internet info, specialized datasets, and now AI-powered insights.
- AI enables summarizing thousands of expert interviews, creating proprietary databases for deeper analysis in investment decisions.