Why PE-backed Firms Are Going Global (And It’s Not Just About Saving Money)

In 15th-century Florence, the Medici family wasn’t content with just being local bankers. They had a bigger vision. By setting up banks across Europe—from Rome to London—they changed how banking worked. Double-entry bookkeeping might sound boring, but it revolutionized how European merchants did business.

Five centuries later, Private Equity firms are pulling a similar move with their Portcos. But here’s the interesting part: while everyone assumes they’re just chasing cheaper costs overseas, there’s more happening beneath the surface.

When a PE firm buys a company, they could simply outsource work to save money—many do. But the smartest ones? They’re building something bigger. Instead of just cutting costs, they’re creating networks that span Silicon Valley to Bangalore, London to Warsaw—unlocking value in ways that weren’t possible before.

Take Artificial Intelligence, for example. Building a top-tier AI team is expensive, especially in markets like San Francisco, where salaries are among the highest in the world. According to Zinnov COE Hotspot Report 2024, a 100-member AI team in the U.S. costs around USD 14 Mn annually. In the UK and Japan, that drops to USD 8.27 Mn and USD 7.21 Mn. Move that team to Mexico, and the cost falls to USD 5.87 Mn. In India, it’s just USD 4.17 Mn. That’s a USD 10 Mn saving—directly boosting EBITDA and adding USD 50–100 Mn in enterprise value.

But PE firms aren’t just looking at the price tag. They’re asking: What if we could have both? What if we could build teams that work around the clock, tap into new talent pools, and reinvest the savings into better products?

That’s what this story is about. How Private Equity Portcos are transforming global expansion from a cost-cutting tool into a value-creation engine. And why, in an era where every company is fighting for talent and innovation, this might be the smartest move they’ve made yet.

Private Equity Portcos Scaling With Global Talent

Finding top-tier talent in Silicon Valley, London, or Tokyo is getting harder. AI, Data Science, and DeepTech skills are in high demand, but the supply just isn’t keeping up. That’s why companies are turning to India, Mexico, and Eastern Europe—because that’s where the talent is.

Google, Microsoft, and Amazon have built massive R&D teams in these regions because they know the best engineers aren’t always sitting in the usual hotspots. For Private Equity Portcos looking to scale, tapping into these hubs isn’t a nice-to-have—it’s a must.

Hiring great talent is one thing. But what really separates winning companies? How they use the savings from global expansion. The smartest PE-backed firms don’t just reduce costs—they reinvest strategically into:

• R&D Acceleration – Investing in AI, Automation, and Product Engineering to create differentiated solutions. 
• Market Expansion – Strengthening go-to-market strategies and scaling global sales. 
• Mergers & Acquisitions – Using capital efficiency to acquire new technologies and enter high-growth sectors.

Speed Matters: Why Execution Is Everything

Private Equity Portcos work on tight timelines. Setting up a global team or a capability center takes time—often 18–24 months if done from scratch. That’s too slow for most high-growth companies.

The smarter approach? Working with experienced execution partners who can reduce setup time to six to nine months. Firms like Zinnov, with expertise across 190+ Global Capability Centers, help PE-backed companies set up operations faster—handling everything from hiring and infrastructure to legal compliance and integration.

For instance, a Healthcare portfolio company recently built a 700-member Revenue Cycle Management (RCM) team in Chennai within 12 months. By month six, productivity was already at 90% of headquarters levels. By year-end, it hit 98%, all while delivering 35% cost savings over traditional outsourcing.

How Private Equity Portcos Can Go Global Faster

For PE-backed companies success isn’t just about expanding—it’s about doing it right. A well-executed globalization strategy can accelerate growth, strengthen innovation, and create long-term competitive advantage. Here’s what it takes.

1. Align Global Expansion with Business Growth: Globalization should be an extension of business strategy, not an isolated initiative. Companies need a structured roadmap that defines how international teams, capabilities, and investments contribute to revenue growth, product innovation, and customer success. Every expansion move should serve a clear business objective.
   
2. Use Market Intelligence to Make Smarter Decisions: Expanding globally isn’t just about picking a spot on the map—it’s about finding the right ecosystem that helps a company scale faster and smarter. Take India. With 1,700+ Global Capability Centers (GCCs) and 31,000+ tech start-ups, it’s a full-fledged innovation engine. Companies moving here aren’t starting from scratch; they’re plugging into a mature ecosystem with deep expertise in AI, R&D, and engineering. That means faster hiring, stronger partnerships, and a ready-made environment for scaling product development.
   
   Mexico, meanwhile, is gaining traction as a nearshore powerhouse. With 700+ tech start-ups and a growing STEM workforce, it’s perfectly positioned for U.S. and Canada-based companies looking for seamless collaboration across time zones. Whether it’s scaling digital services or strengthening engineering teams, Mexico offers a strategic mix of proximity and technical depth.
   
   The key is making informed moves. Expanding into the right markets creates real business impact, from accelerating innovation to strengthening market reach.
   
3. Move Fast with the Right Execution Model: Traditional DIY approaches to setting up global centers take too long. Working with experienced execution partners—who specialize in HR, branding, finance, and operations—can cut down setup time dramatically, getting teams up and running within months instead of years.
   
4. Focus on Seamless Integration: A global presence only drives impact when teams work as a unified force. Cross-border collaboration models, leadership programs, and cultural alignment initiatives are key to ensuring global teams are fully integrated into the company’s operations and vision.

The Bottom Line

Just as the Medici transformed banking by expanding across Europe, PE portcos today are driving portfolio growth through global ecosystems of talent, technology, and market expertise. The impact goes beyond individual portcos. PE-backed firms are creating innovation corridors—connecting Silicon Valley to Bangalore, London to Warsaw, and New York to Mexico City. These networks enable a continuous exchange of R&D, intellectual property, and market intelligence, reshaping traditional corporate structures. 

For PE, cost efficiencies still matter. But the true differentiator is a portco’s ability to scale, capture new markets, and build long-term competitive advantages through global talent. 

Globalization isn’t just an efficiency play—it’s a growth strategy.