For investorsBy investor · Sovereign and state portfolios
Lift the performance of state-owned companies, with transparency the public can trust.
State holdings own large, varied companies and answer to the public for them. We give the owner one standard, live view of every company and check payments, procurement and approvals continuously, on infrastructure that stays in the country.
The problemWhat goes wrong today
State-owned companies trail their private peers, and the owner sees them late.
Board reporting is quarterly, payments and procurement are audited on samples after the fact, and direct deals are judged on the counterparty’s deck.
Governance reforms work, but only when the owner can see what is happening inside each company.
What the benchmarks sayPublished research, with its source
What the research says.
- 33%lower productivityin state-owned firms than private peers, on average1 IMF, Fiscal Monitor April 2020, “State-Owned Enterprises: The Other Government”
- 3×+higher productivityin SOEs of low-corruption vs high-corruption countries2 IMF, Fiscal Monitor April 2020
- ~5 ptslower employee costsas a share of revenue if the weakest-governance countries reached medium control of corruption (IMF estimate)3 IMF Working Paper 19/253, “Governance and State-Owned Enterprises: How Costly is Corruption?”
- 50–60%of sovereign private dealsnow direct or co-investments, up from ~40% in 20234 Bain & Company, “The future of sovereign wealth funds: four imperatives for the next decade”
How AIx2 helpsWhat changes with the company as built
Four things change.
Every company measured
One standard, live view of performance across the portfolio.
Governance built in
Payments, procurement and approvals checked continuously.
Direct deals diligenced
Targets and co-investments mapped from data, not decks.
Sovereign by design
Runs on-prem with open-source models. Data stays at home.
How the work runsThe Five Step Method, in this setting
From read-only access to results, step by step.
- Weeks 1–2
First companies connected
Read-only access on in-country infrastructure; one standard model for all companies.
- Weeks 2–6
Costs and controls mapped
Processes, costs, payments and procurement rebuilt from each company’s own data.
- Weeks 6–10
Savings and controls
Cost levers sized and owned; payments and procurement checked in full, not samples.
- Ongoing
Monthly board view
All companies on one view; direct deals diligenced the same way.
Illustrative caseA worked example, with its arithmetic
State holding with 20 companies; first three with $4B of costs
Illustrative case: a worked example, not a client result. The arithmetic is shown below it.
The situation
Board reporting for the 20 companies was quarterly, and payments and procurement were audited on samples.
What AIx2 did
- Connected the first three companies, on in-country infrastructure, to one standard view.
- Checked every payment and procurement record, not samples, and sized the cost levers.
- Moved board reporting for all 20 companies from quarterly to monthly.
BeforeWith AIx2
Operating costs
$4.0B to $3.94B
Board reporting, 20 companies
quarterly to monthly
Payments and procurement checked
samples to 100%
Illustrative. Assumes 1.5% lower operating costs in three companies with $4B combined costs: $4B × 1.5% = $60M a year.
What you receiveThe deliverables
What lands on your desk.
- One standard, live view of every company
- Continuous checks on payments, procurement and approvals
- Direct-deal diligence from data
- In-country, on-prem deployment
More for investorsThe other deal stages and investor types
The same evidence, for every seat at the table.
- By deal stageDue diligenceSee how the target really runs, before you sign.$40M overpayment avoided
- By deal stageM&A and integrationCapture the synergies you paid for, from the first day after closing.$14M more revenue synergies a year
- By deal stageValue creationTurn the value-creation plan into EBITDA, not slides.+$10M EBITDA a year
- By investorPrivate equity and growth fundsCreate value across the portfolio, and prove it to your LPs.+$30M EBITDA a year across five companies
- By investorHoldings and family officesRun a diverse group of companies with one clear, live view.+$24M EBITDA a year across the group
- By investorLPs and endowmentsSee through every fund to the companies underneath.1,400 portfolio companies seen through