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Art Saxby
Recent Posts
The Operational Pivot Has Reached Commercial Growth
The New PE Value Creation Playbook: Part One
Series Introduction
Private equity value creation has entered a new era.
For years, firms could rely on leverage, market timing, and multiple expansion to help drive returns. That environment has changed. Capital is more expensive, exit timelines are less predictable, and buyers are applying greater scrutiny to the quality, durability, and repeatability of portfolio company growth.
PEI 2018 Operating Partners Forum Recap: Growth Guidance Role Becoming More Strategic
Oct 30, 2018 1:28:01 PM — The two key messages from the PEI Operating Partner forum came through loud and clear this year: Every PE firm needs an Operating Partner strategy. The structures vary, but LPs now insist that someone is covering the role. As the Operating Partner role has become more strategic for PE firms, the focus of the role has matured from cost cutting to sales effectiveness and now onto supporting and driving commercialization and Big M strategic Marketing. I have attended 5 of the last 6 PEI Operating Partner Forums. During that time, I have seen the role of Operating Partner change significantly. When I first started attending, Operating Partners (OPs) were evolving from cost-focused executives in residence to starting to work with Deal Teams on Value Creation Plans. At that time, being involved in fund raising and participating in LP meetings was an aspiration.
It’s Not Just About EBITDA Anymore
Apr 30, 2018 1:02:33 PM — EBITDA is not just one of our favorite acronyms in the Private Equity world, it’s the basis of value. Purchase prices are based on EBITDA and sale prices are based on EBITDA. Operating Partner groups and Resource groups came into existence a few years ago because PE firms recognized that they could add resources and expertise to help their portfolio companies grow EBITDA and earn a better exit.
Not All EBITDA Is Created Equal
Dec 11, 2017 1:26:53 PM — During a recent private equity forum in New York City, operational partners came together and discussed industry concerns at length, including a particularly pressing hot topic. PE fund competition is fierce — and that's skewing the way EBITDA affects returns and heavily influencing what it takes to come out ahead at an investment's exit point.
How Can Operating Partners Work with Management Teams to Drive Growth?
Oct 12, 2017 4:13:46 PM — Ever had a portfolio company that ate up every bit of advice you had on how they could run better, but could not seem to grow? We at Chief Outsiders see this all the time. Often the best run companies have the hardest time growing. It’s a classic challenge, especially in the B2B world where engineers who run companies fall in love with the thing they make or the service the deliver… or simply with the technology they love.