Deloitte posts record revenues of $43.2 billion with double-digit growth

21 September 2018 Consultancy.asia

Deloitte has posted whopping global revenues of $43.2 billion for its last reporting year, with impressive growth of 11.3 percent worldwide.

The Big Four accounting and consulting firm Deloitte has just got a whole lot bigger, smashing the $40 billion barrier for the first time to record its highest ever revenue take of $43.2 billion. The $4.4 billion hike on last year’s haul equates to year-on-year on growth of 11.3 percent – the firm’s ninth consecutive year of growth – led by a booming consulting line and double-digit growth in its Asia Pacific and Europe, Middle East, and Africa (EMEA) regions.

While eclipsed by the staggering 15.9 percent growth in the broad EMEA region, the firm was still up an outstanding 13.3 percent in the Asia Pacific, with operations in the Americas recording a solid 8 percent growth. Meanwhile, Deloitte’s Asia Pacific division – which is in the process of merging its operations into a single operating entity – saw the highest rise in headcount, at 11.6 percent, with 242 partners elevated in the region over the past year at a near 30 percent increase.

Altogether, the firm boosted its capacity over the past year with the introduction of 77,000 new employees worldwide, taking its total number to approximately 286,000 at an 8.4 percent increase, while 676 individuals were admitted to the firm’s partnership ranks to be up 19 percent on last year. Of these new partners, 174 were women, while the Americas welcomed 238 new partners and the firm’s fastest growing region EMEA elevated 196 to its upper echelon.

In terms of Deloitte’s service divisions, which saw growth in every department, the firm’s burgeoning consulting line was the stand-out performer, with its revenue growth of 15.7 driven by the advent of Industry 4.0 technologies and a focus on delivering strategic digital transformations. Also driven by developments in the digital realm was the firm’s second fastest growth area in Risk Advisory, with offerings in cybersecurity and risk sensing among others.Deloitte posts record global revenues of $43.2 billion with double-digit growthIn a statement, the firm said that in addition to its own investments in modern digital technologies, it was also working to empower 50 million futures in the new economy by 2030 through education and career-building opportunities. As an example of such a commitment in Asia, Deloitte has launched a Future of Work Center of Excellence (CoE) in Singpaore, and teamed with the Singapore government to establish a consulting-focused professional career conversion programme.

Meanwhile, following the 12 percent rise in Risk Advisory revenues, the firm recorded 8 percent growth in its Financial Advisory line – with M&A consulting and forensic services at the forefront – and 7.7 percent and 8.7 percent growth in its Audit & Assurance and Tax & Legal segments. As to industries, the stand-out growth sectors for Deloitte over the past year were Technology, Media & Telecommunications, and Financial Services, which both grew at over 12 percent.

“These results reflect Deloitte’s unrelenting commitment to serving clients with quality and distinction while embracing important public-interest responsibilities,” Deloitte Global CEO Punit Renjen said, describing the result as exceptional. “Over the past year, we have increased strategic investments in the capabilities and services most sought-after by clients in the fastest-growing markets in the world. We also have expanded our efforts and investments to drive audit quality and innovation while achieving strong financial results.”

The annual Deloitte financial report, which covers the twelve-month period to the end of May 2018, follows in the wake of the record earnings of $34.8 billion announced by Big Four rivals Ernst & Young last week, with growth in the Asia Pacific at 10.5 percent. Yet, despite EY’s strong performance, and with PwC still to report, Deloitte has continued to open a wider gap at the top of the Big Four table – a position it has held since eclipsing PwC in 2016. 

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Asia-based BCG-backed tech fund B Capital raises a further $400 million

09 April 2019 Consultancy.asia

The BCG-backed B Capital Group has raised over $400 million in the first close of its second fund. Based in Singapore, B Capital has now raised $766 million across two funds.

Established by Facebook co-founder Eduardo Saverin and ex-BCG Senior Advisor Jav Ganguly in 2016 – and backed by Boston Consulting Group from the outset – the Singapore-based venture capital firm B Capital has according to a US Securities and Exchange Commission (SEC) filing secured $406.1 million in commitments at the first close of its second fund – adding to $360 million raised last year for its first fund.

Launched toward the end of March, the second B Capital Fund has so far attracted 62 investors, and although a final close date or target hasn’t been disclosed, an unnamed source told Forbes that the VC firm is looking to double the size of its first fund. Meanwhile, B Capital has already built up a portfolio of 19 start-ups, with a focus on technology in the healthcare, financial services, industrial logistics and consumer enablement segments, and a particular eye to the Southeast Asia and India markets.

“We continue to strive to be a launch pad for entrepreneurs across a wide range of verticals and seek to provide our portfolio companies with the necessary resources and access to some of the most important business leaders,” said Saverin, who moved to Singapore in 2009. “We are committed to helping the next generation of entrepreneurs deliver transformative technology to the world and are strategically positioned to disrupt the realm of venture investing.”Asia-based BCG-backed tech fund B Capital raises a further $400 million Anchored by BCG, and partnering with BCG’s Digital Venture’s incubation arm, B Capital styles itself as a bridge between the innovative tech start-up realm and leading global corporate incumbents – bolstered by BCG’s deep client network (some 1,800 globally according to the consulting firm) and domain expertise in the investment fund’s areas of focus. Further, B Capital and BCG work together to uncover the most promising areas of investment.

“We partnered with the Boston Consulting Group because of their unique insights into the industries that we invest in and their unparalleled access to the world’s leading corporations,” said B Capital’s Ganguly, who in addition to spending the past six years with BCG served as a senior vice president at Bain Capital during the prior six. Earlier, Ganguly spent three years as a senior manager at MBB rival McKinsey & Company.

“It is inspiring to be backed by investors who recognise that our combined extensive experience as entrepreneurs and business creators provides a unique and valuable perspective as to how we support and provide capital to our portfolio companies,” adds Ganguly. “Our first-hand experience building and scaling enduring businesses has allowed us to bridge an important gap connecting entrepreneurs in need of resources to scale their businesses with corporations seeking to innovate and leverage emerging technologies.”

With B Capital said to be aiming to invest $20 million in each portfolio company, including reserves for future growth funding, Southeast Asian and Indian investments to date include Singapore short-term financing match-making platform Capital Match, ASEAN last-mile logistics provider Ninja Van, Carro – a Singapore-based vehicle sales and subscription service, and India’s Mswipe, a mobile point-of-sales solution.

“Whether it is funding availability, stage, talent, institutions, or exits, the presence of such whitespaces in the ecosystem makes it equally challenging and rewarding for investors,” Saverin and Ganguly wrote of the gaps in the Southeast Asian and Indian investment space in a founding post on LinkedIn. “We are very excited and bullish in the long run because we see the opportunity to bridge that gap and make a positive impact in a community of two billion people.”