Private Equity
Leadership Capital decisions can make or break the alpha
Shifting Landscapes
The Private Equity industry is undergoing massive shifts
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Financial engineering-based value creation has decreased
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Operations based value creation has increased at the same time
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Interest rates are rising making debt capital expensive
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Smaller companies merge rather than large standalone acquisitions
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Exits take longer, usually seven years up from five years
(Source: Harvard Business Review)
This suggests PE firms need more than financial engineering to generate a high alpha. For all the above reasons, it has become imperative for PE firms to hire effective leaders for their portfolio companies.
There is an increasing importance of value creation through operations. In addition, due to the impact unforeseen CEO/CXO exits have on the overall alpha, it is crucial for PE firms to get expert guidance on leadership search and leadership assessments.
Unique Challenges
Unique leadership challenges faced by Private Equity portfolio companies
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Ambitious goals but lesser resources as compared to a listed company
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Average CEO tenure at S&P 500 firms is 10 years versus 5-7 years at PE investee companies
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Extreme time sensitivity with turnaround window of 5-7 years. This is challenging even for the most seasoned of CEOs
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Without structured integration and onboarding plans for CEO/CXOs, it takes 9 months for a leader to come up to speed versus 4 months
Our Value Proposition
Rethinking Private Equity hiring for better results
Bearing in mind all these challenges, Private Equity firms need to rethink, revamp, and invest their energy towards hiring effective leaders. This will create more efficient returns. Star resumes, strong references, past performance, and gut feel are insufficient. They can be helpful to make the final call but should by no means be the only factor.
Corner Office Advisors assists in assessing the roles, objectives, expected outcomes and challenges faced by each distinct portfolio company. We design a hiring vision through expert guidance and internal discussions. Followed by custom assessments and tailormade interview guides that help the hiring manager focus on the most relevant traits and skills required for the job.
Attract and hire the right leadership talent aligned to your organization and business landscape. Leaders who accelerate growth in a disruptive world.
Use assessments to find and develop Effective Leaders. Deep personality, behaviour and adaptability assessment reviews that look at multiple aspects of the individual.
Our leader mentor programs produce powerful personal and professional benchmarks. These leaders bring strategic, critical, visible transformation to the organization.
Initiatives that promote women in leadership. Women leaders improve overall business outcomes with their empathetic, conscious, open, and adaptive leadership style.