2024 was a milestone year for private equity, and for Humatica. The industry is under greater pressure to generate acceptable returns than ever before. With a backlog of +20k firms to be sold, and pension funds reluctant to allocate more funds until they see money returned, fund-managers are under pressure. As dry powder shrinks, the option of selling to another fund with money to deploy is more remote. The only way forward is to improve underlying operational performance and profitability.
In this context, it has also been a milestone year for Humatica. 2024 confirmed the important role Humatica plays in unlocking value through organizational effectiveness. With over 20 years of specialist org transformation experience and the best AI-powered tools in the business, Humatica helped 6 of the 10 largest buy-out funds drive superior returns. We were routinely engaged for pre-deal organizational due diligence, and the trickiest post-deal use cases including merger integration, divestiture, rightsizing and cultural transformations.
Key Humatica highlights from 2024:
1. New Paris Office Opened: Humatica expanded its European presence with the opening of a Paris office, led by Jan Löning, further strengthening its ability to serve clients in this dynamic and growing private equity market.
2. Strengthened U.S. Presence: Russell Raath joined Humatica as an Operating Partner in the United States, enhancing the firm’s capacity to support PE-backed firms in North America.
3. Received Industry Recognition: Humatica received Private Equity Wire’s award for Best Organizational Due Diligence Solution, affirming its leadership in identifying and resolving organizational bottlenecks pre-deal.
4. Contributed Thought Leadership: Humatica actively contributed to industry knowledge through many articles and participation in industry conferences in London, Stockholm, Munich, Zurich and Paris, sharing practical expertise on how organizational alignment and agile leadership drive value creation.
5. Delivered Private Equity Firsts: Humatica’s altus behavioral benchmarking approach was adopted to assess governance quality at all levels and each function for all firms in the portfolio – a first for the private equity industry.
6. Realized Strong Revenue Growth: Humatica’s fee revenues grew by over +60% during 2024 and showed remarkable resilience compared with the broader consulting market which was in decline. Humatica’s growth is yet another indication of fundamental changes in the private equity industry and the relevance of Humatica’s specialist services.
Humatica’s Outlook for 2025
During 2025, Humatica expects pressure to sell-off the backlog of companies acquired in 2019-2022 and recycle cash to grow. However, high multiples paid at that time will make it challenging to achieve adequate risk-adjusted returns. And, these are needed to attract new capital. We expect industry consolidation driven by these economic to continue, and case for engaging Humatica to consequently increase.
With its +20-year track record and proven org effectiveness tools, Humatica is well positioned to support fund and portfolio company managers to increase organizational effectiveness and efficiency as key levers driving returns.
Humatica will stay true to its founding idea of bringing unprecedented fact-based transparency to identifying and resolving organizational bottlenecks. We will continue serving the worlds leading private equity funds and their entrepreneurial portfolio company leadership teams, while levering the power of AI on our data sets accumulated over 20 years to deliver high-impact insights even faster.
It’s been a privilege to be the partner-of-choice for many of the world leading private equity funds. We look forward to doubling-down on our unique specialization and building on our industry leadership to deliver superior returns for private equity clients across the globe.
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