How Leading Private Equity Funds Are Transforming Portfolio Companies
Identifying and exploiting opportunities to drive growth, transforming business models and enhancing efficiency in portfolio companies are essential for Private Equity investments particularly with increasing valuations and fierce competition on deals.
At the Private Equity Europe Forum 2018 in London, FTI Consulting, which works extensively with medium and large sized funds to support their value creation programmes, moderated a panel of leading Private Equity operating partners to share their knowledge and their different approaches to enhancing value in their portfolio companies.
The panel consisted of:
- Amanda Good, Partner and Head of the Operations Innovation Team, Hg Capital
- Bertrand Pivin, Partner, Apax Partners France
- Immo Rupf, Partner, Cinven
- John Leahy, Founder, Partner and Head of Value Enhancement at DH PEP
- Volker Hichert, Founding Partner & Managing Director at Deutsche Private Equity
- Adam Bradley, Senior Managing Director, FTI Consulting
For Amanda Good, Partner and Head of the Operations Innovation Team at Hg Capital, a key strategy is to focus on commercial excellence as a repeatable intervention in all the firm’s portfolio companies. Commercial Excellence covers sales execution, digital marketing, pricing and retention, cross selling and upselling.
This focus builds companies for the longer term since higher top line growth supports higher multiples on exit. It also builds early collaboration with management teams so that initiatives can be implemented more quickly with buy-in across the company. Most importantly, the approach is highly repeatable since all companies that Hg invests in have similar sales, marketing and pricing needs.