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Delivering Value to
Private Equity
Firms

Introduction

For many companies, travel expenses rank among the top three expenditures, trailing only payroll and rent. Unmanaged or poorly managed travel programs inherently produce a drag on profitability.

Private equity (PE) firms are tasked with delivering positive returns for their investors and need a solution to control travel expenses across their portfolio while maximizing savings and operational efficiencies. Individually, portfolio companies often lack travel management controls and travel spend volume to negotiate favorable vendor discounts, limiting their ability to effectively reduce travel costs.

Solution

Cain Travel provides a proven solution to support PE firms in managing and reducing travel expenditures across their portfolio. By consolidating travel spend through Cain, PE firms that own 51%+ of a portfolio company can achieve a streamlined travel management program, value-added services, and advanced reporting capabilities. 

Air Budgeting

Travel Management

Customized online booking sites, such as SAP Concur or Deem, were created for each portfolio company, incorporating their individual travel policies and parameters. Travel policy enforcement, including the approval process, was implemented to help ensure effective travel cost containment.

Duty of Care deliverables were established, providing the ability to identify each traveler’s location.

Ongoing Negotiation

Value-Added Services

Based on travel spend volume, there was potential to secure negotiated discounts on airfare (over 20%), car rentals (over 25%), and hotel bookings with chain-wide discounts (over 20%) by leveraging the combined travel spend of the entire portfolio.

Access to value-added services was available to enhance the traveler experience and drive further cost efficiencies.

Reporting

Advanced Reporting

Individual portfolio companies gained access to their own reporting suite, allowing them to view and manage their travel spend.

The private equity firm obtained centralized reporting access, enabling it to gain insights into the performance of both the individual companies and the overall portfolio

Outcome

Cain’s approach delivers measurable savings and operational benefits. With the support of our Account Management team, significant discounts on travel expenses are possible through consolidated volume and effective vendor negotiations. Operational efficiency and cost control are achieved by centralizing travel management and gaining clear visibility into the travel spend of the portfolio. The financial pricing model benefits the entire portfolio, providing savings that are unattainable by individual companies operating on their own.

Cain Travel recognizes the core objective of PE firms — to maximize investor returns. By leveraging innovative technology, proprietary platforms, and travel management expertise, Cain delivers a seamless solution for managing and reducing travel costs. Through consolidated spending, Cain enables PE firms to enhance the profitability of their portfolio companies and achieve greater overall value.