Enhancing Board Effectiveness in Private Equity
In private equity (PE), the effectiveness of portfolio company boards is crucial for driving value creation and achieving investment objectives. Unlike public company boards, PE boards often exhibit a more engaged governance model, characterized by focus, decisiveness, results orientation, and active engagement.
Key Attributes of Effective PE Boards:
Focused Objectives: PE boards align closely with management to establish clear, measurable goals that directly impact value creation.
Decisive Action: With streamlined communication channels, these boards can make swift decisions, enabling rapid implementation of strategic initiatives.
Results Orientation: A relentless pursuit of superior returns drives PE boards to set ambitious performance targets and rigorously monitor progress.
Active Engagement: Regular, robust communication between board members and executives fosters a deep understanding of the business and facilitates timely interventions.
A survey by KPMG highlights that effective agenda setting is essential for PE boards to devote adequate time to strategy, risk management, and long-term value creation.
At Portobello Advisory, we specialize in enhancing board effectiveness for PE-backed companies. Our tailored coaching programs focus on developing clear objectives, fostering decisive leadership, and promoting active engagement between board members and management. By partnering with us, PE firms can strengthen their governance frameworks, drive superior performance, and achieve sustainable growth.