FTI Consulting breaks $2 billion global revenue barrier in 2018

22 March 2019 Consultancy.asia

FTI Consulting has broken the $2 billion revenue barrier in 2018, with global earnings up by 12 percent.

Global business advisory FTI Consulting has closed out its 2018 financial year with record fourth quarter revenues, the $505 million result narrowly pushing the firm above the $2 billion full-year barrier for the first ever time. Ending December 31st, FTI scraped over the line with 2018 global revenues of $2.028 billion, up 12.2 percent on the firm’s $1.8 billion take for 2017.

Citing its Corporate Finance & Restructuring and Forensic and Litigation Consulting practices as the stand-out performers, FTI’s revenues grew across each of its five business segments, which further include economic consulting, technology, and strategic communications. This growth across all lines was also reflected in the firm’s fourth quarter results, which were up 8 percent on the prior year quarter.

As a fourth quarter breakdown, FTI’s Corporate Finance & Restructuring line jumped by 10.9 percent on the prior year quarter to $144.8 million, while the firm’s Forensic and Litigation Consulting practice was up 9.3 percent to $132.1 million. The firm’s Economic Consulting and Strategic Communication segments saw more modest gains of 6.1 and 6.7 percent – adding $128.4 million and $58 million respectively.FTI Consulting breaks $2 billion global revenue barrier in 2018For the full year, FTI’s three largest practices all pulled in above $520 million, led by the Corporate Finance & Restructuring division with a ~$565 million take (with work such as serving as the provisional liquidators on the collapse of oBike in Singapore), while its Strategic Communications (~$223 million) and Technology ($186 million) arms split the remainder of the global revenues.

“I want to thank our clients and our teams for an outstanding year,” said FTI Consulting CEO Steven Gunby. “These results reflect the efforts by our teams across the globe to continually strengthen our firm by attracting and developing the best professionals and building businesses behind them. This, in turn, allows us to do our job: support our clients as they navigate their largest and most complex issues.”

Altogether, FTI Consulting has some 4,700 employees across operations in 28 countries (including Greater China, Singapore, Japan, Korea, Malaysia, Indonesia and the Philippines) with a revenue generating headcount split of; Corporate Finance & Restructuring – 948 professionals; Forensics & Litigation – 1,153; Economic Consulting – 708; Technology – 306, and; Strategic Communications – 641.

Although FTI’s geographic revenue breakdown wasn’t provided in the abridged report, the Asia Pacific region in the previous year accounted for 7.1 percent of the consultancy’s business – with North America bringing the bulk at a 71 percent share. The Asian forensics consulting market continues to heat up however, as evidenced by FTI and its competitors bolstering their local expertise, such as with FTI's recent recruitment of financial compliance veteran Rod Francis as a Senior Managing Director in Hong Kong.

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.”