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2018 Private equity snapshot survey results

2018 Private Equity Snapshot Survey Results

The survey was carried out over a 2-month period in April and May, 2018 and consisted of an online questionnaire supported by face-to-face interviews with 50 operating partners in N America and Europe. The survey group was made up of full-time employees whose role is dedicated to creating and driving operational performance in portfolio companies, as well as part-time operating advisors and operating teams.

Key findings

  • While the use of operating resources is relatively high and continues to grow, the measurable effectiveness of these resources is unclear
  • Most PE firms surveyed believe direct initiatives within their teams are capable of driving a higher level of cost reduction, cash flow and/or growth in portfolio companies than is currently achieved
  • Lack of skilled resources available in house, time constraints and difficulties getting CEO/management cooperation are cited as among the chief barriers preventing PE firms from driving more value in cost reduction and cash
  • 60% of respondents either lack, or are unaware of, a formal process for resource evaluation 
  • 92% view individual portfolio company performance as the key performance metric