Bankruptcy filings by U.S.-based private equity (PE) portfolio companies are on track to equal the record set in 2023, as inflation and higher-for-longer interest rates continue to take their toll. This is pushing the investment teams at General Partners (GPs) to take a much closer look at current portfolio companies and new targets.
The investment team at this global PE firm was working with a third-party information provider to receive public and private company financial data, equity research and a range of evaluation and modeling tools. Members of the team were dissatisfied with their current provider and wanted more comprehensive and timely data, better analytics and the ability to incorporate ESG factors into their analysis. A new member of the team had worked with S&P Global Market Intelligence ("Market Intelligence") in the past and recommended the firm to his colleagues
Pain Points
Dissatisfaction with their current information provider had members of the investment team considering alternatives to dig deeper on companies in this uncertain market. In particular, they wanted:
- A trusted provider of extensive public and private company financials.
- A better evaluation tool for Excel modeling.
- More comprehensive investment research for equity and industry trends.
- The ability to capture ESG factors in their analysis.
The team was also buying ancillary information from several other providers and wanted to consolidate everything with one firm. In addition, they were unhappy with the pricing arrangement they had with their primary provider and wanted a more flexible approach that would enable them to add users as needed. The team contacted Market Intelligence to learn more about the firm's data, analytic capabilities and approach to pricing.
The Solution
Market Intelligence specialists described an array of relevant datasets available on the powerful S&P Capital IQ Pro desktop and noted that the company had won numerous awards, including WatersTechnolgy's award for Best Research Provider for three consecutive years. The datasets would enable the investment team to:
|
|
Easily assess the financials of public and private companies |
Public Company Financials provides global standardized financial statement data for over 180,000 companies, including over 95,000 active and inactive public companies, and As Reported data for over 150,000 companies. [1] The Private Company Dataset covers 53M+ private companies around the globe, including 14M+ with financial statements, 85M+ professionals, 3M+ corporate structure relationships, and 1.04M+ early stage companies. |
|
|
|
See how market experts view industries and companies |
The Aftermarket Research collection features 35M+ analyst research reports from 1.8K+ global investment research providers, including top-ranked investment banks such as Citi, Credit Suisse, Barclays, UBS, J.P. Morgan, HSBC and Deutsche Bank. |
|
|
|
Track the alternative assets industry |
Preqin via S&P Capital IQ Pro provides analytics and research on the alternative assets industry, including PE/VC and Private Debt. Details include:
|
|
|
|
Benchmark ESG performance |
S&P Global ESG Scores are a sophisticated measure of corporate sustainability performance designed for companies, investors and other stakeholders to address critical ESG risks and opportunities. Standing apart from other ESG scores, they are produced through a unique combination of verified company disclosures, a review of potential controversies and in-depth company engagement. ESG Scores help clients understand the sustainability strengths and weaknesses of companies relative to their peers to incorporate ESG insights into portfolio management. |
|
|
|
Save time with productivity-enhancing tools |
The S&P Capital IQ Pro smart screener enables users to instantly find information across companies, news, documents, research, transcripts and investor presentations. The document viewer incorporates AI-based searches to speed up the discovery process for text-based insights across filings and transcripts. A suite of office tools, including an Excel Plug-in, seamlessly powers proprietary models and streamlines presentations. Users can access a library of hundreds of ready-to-use models and templates, integrate data from Excel to PowerPoint or Word with fewer errors and refresh formulas in Excel with just one click. Sophisticated Find Buyers and Targeting tools enable users to quickly search and rank potential M&A or private placement investors based on detailed criteria. Quick Comps helps identify the ideal universe for trading comps, and Competitors helps view peer groups for companies. |
|
Key Benefits
Members of the investment team thought the Market Intelligence capabilities were far superior to what they had through their current primary and ancillary providers and subscribed to the offerings that were discussed. They can now access all needed information from one source and are benefitting for having the ability to:
- Combine and compare extensive public and private company financials for private company valuations.
- Use a click-through capability for document sourcing for financials, multiples and estimates.
- Easily assess peer comps and enrich the information with transaction details.
- Quickly gain access to millions of analyst reports from well-known brokerage houses and market research providers to obtain in-depth company and industry analyses.
- Add an important ESG dimension to their ongoing analysis.
- Follow event activity for specific companies, including dates, times and contact information for investor relations leads by leveraging corporate transcripts.
- Identify a universe of comparable trading multiples using Quick Comps and Competitors.
- Utilize an Excel Plug-in and a range of other productivity-enhancing tools to work quickly and efficiently.
- Leverage an extensive selection of prebuilt model templates, reports and charts, including trading and deal comps.