With multiple expansion unlikely to continue, private equity firms will have to work harder in order to deliver superior returns to investors. They will need to assist portfolio companies in making the operational and strategic improvements that generate sustained revenue and earnings growth.
We lead the market in supporting an active approach to ownership, and the earlier we are engaged, the better. Our numbers tell the story: Our clients’ mean return on deals where we were involved within the first year of ownership is 3.0 times invested capital, well over the industry average of 1.9 times. We begin with a strong start: tackling commercial acceleration, cost, and/or cash initiatives immediately post-close to generate results fast. This approach de-risks a deal early and provides headroom to make the strategic choices required to unlock full potential.
In parallel, we develop a full-potential value-creation plan that covers critical decisions for the portfolio company around ambition, where to play, how to win, and path to delivery. Transitioning from strategy to implementation, we support the execution of focused initiatives or wholesale transformations. From start to finish, we create clear alignment between portfolio company management and investors, to assure, amplify, and accelerate delivery.