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.
- 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