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Private Equity: Protecting a Portfolio While Lowering Costs

Technology is a critical cornerstone in any Private Equity (“PE”) firm and their portfolio companies. However, with rising costs and increased threats, PE firms are placed at greater risk as their portfolio grows. Some of these key challenges include:

  • Protecting the PE firm and portfolio companies’ data from threats
  • Managing technology costs so they don’t spiral out of control
  • Having visibility and monitoring capability across the portfolio
  • Attracting and retaining technical talent in a volatile labor market

If technology is not a core competency of you or your portfolio companies, then outsourcing gives you a competitive edge. But there is a model that can lower the PE firm’s IT operating costs to almost ZERO!  The key is how you choose to approach technology and the partner you select is key.

Sagin has been providing IT managed services support globally for fifteen years but maintains resources domestically for safety and security. The difference with our approach, is that we provide rebates to the PE firm for every portfolio company we support. This approach creates the following value:

  1. The PE firm could essentially receive its IT support for zero cost
  2. The portfolio of companies is consistently protected using leading tools, practices and policies
  3. The PE firm has complete visibility into each portfolio company down to every user even the executive management team
  4. Neither the PE firm nor portfolio company must manage hiring, retaining and development of IT staff
  5. Both the PE firm and the portfolio companies have leveraged purchasing power through the IT provider for hardware, software, services, etc.
  6. On-boarding and off-boarding of employees, equipment, etc. is all managed by the IT provider
  7. As the IT Managed Service provider, you also have access to in-house IT due diligence teams. No need to hire other resources or maintain them in-house

Through the expansion and use of IT Managed Services as a cooperative resource, portfolio companies have experienced a 15-28% reduction in IT operating costs and PE firms can experience a 30-50% reduction in their own internal IT operating costs.

Sagin, LLC is a management consulting and IT managed services firm which provides full service 24/7 support of small to mid-sized (10 – 1,000 employee) companies including help desk, infrastructure, server/cloud management, data security risk mitigation, due diligence and strategic planning support. To request an IT assessment to see if our model makes economic sense for you, contact us at info@saginllc.com or 312-281-0290. www.saginllc.com

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