Australia

Portfolio management 

The time has gone when private equity (PE) houses needed to do little more than sit on their portfolio companies, occasionally checking that they were on track and ensuring that the exit was well timed. Now the emphasis is on value enhancement and performance improvement. We see more and more of our clients taking an active approach to managing existing assets. In other words, PE houses are becoming more than purely financial buyers.

David Willis

David Willis

National Sector Leader, Private Equity

+61 2 9346 6220

 

A key to success in sourcing deals and fundraising is to show value-added to companies invested in. This requires effective portfolio management. For the PE house, there are some vital considerations:

 

Avoiding surprise

Despite the recent advances in technology, many organisations lack sufficient timely and relevant management information.

 

Making the most of interventions

Where the relationship with the portfolio company is paramount, in order to enhance the efficiency and effectiveness of the business; there needs to be an approach developed which focuses on what matters, before those matters become critical.

 

Delivering cross portfolio benefits

As business pressures increase, organisations need to take advantage of the opportunities available as the owner of multiple businesses.

 

Our advisers use interviews, workshops and the review of performance data to help you pinpoint the key issues. Our advice can be supported by factual comparisons with competitors and our experience of working with similar businesses. Our key strength is in helping build and implement plans of action that can actually make a difference.

 

With our guidance you and the management team can develop a project plan encompassing the strategic, operational or financial input required to improve performance. Taking account of cultural and other factors which affect the way your organisation works, we can help you develop a program of change that all parties agree to and follow.

Private Equity

KPMG offers a combined approach, helping our clients with strategic, deal and portfolio management issues.