Our portfolio management approach is designed to ensure the highest possible performance of each of our portfolio companies – bringing critical insights, strategic capabilities, and best practices to deliver superior investor returns. This approach is applied in each of the critical stages of a company and asset ownership process – including pre-acquisition and due diligence, early ownership, the core ownership period, and the process leading to exit. Prior to the acquisition of a company or asset, we conduct market and operational due diligence, along with an assessment of the management team.
During the critical initial ownership period, our approach includes process disciplines in the areas of strategy, operations, and people management, as well as board governance and audit protocols.
We work with senior management to identify the key industry and company-specific operating and financial measures that best reflect the true performance levers for a particular business. We design incentive plans to encourage and motivate management teams to meet mutually agreeable metrics. Through a disciplined program of monthly performance reviews and quarterly board meetings, we work with each management team to evaluate the company’s performance, ensure early recognition of any deviations from expected performance and determine appropriate course corrections. More extensive involvement is undertaken as required.
During ownership, our executives serve as members of each company’s board of directors, seeking to increase the value of the investment in three primary ways: (1) To assist management in defining and continuously updating the optimal three to five year action-based strategy, (2) To identify and drive initiatives in the company’s annual operating plans that improve the near-term operating performance of the business and support achievement of ambitious financial objectives, (3) To improve the company’s human resource management and succession planning. We also regularly identify opportunities where our functional capabilities (both in-house and with selected third-party advisors) can be leveraged in support of marketing, sales, and growth-related initiatives, as well as cost reduction, working capital reduction, process improvement, and supply chain initiatives. Finally, we also play a critical role in evaluating, selecting, and developing CEO candidates, and often assist the CEO in the recruitment and selection of the senior management team.