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The pathway to a CEO role for a portfolio company may be a logical next step in your career when you consider the structure of a private equity firm and its particular mandate and also meet the performance criteria.
It’s a complicated asset class, certainly, but some similarities across private equity funds provide helpful context to
understand what PE firms generally seek in a portfolio CEO.
As a basic structure and construct, private equity firms generally invest in companies requiring help with financial and market growth. Many firms have an industry focus, and others diversify across sectors. I don’t believe you need to
be a private equity expert to serve as a CEO in a private equity-backed company.
Business is business, and companies need to remain liquid, serve their customers, and be profitable.
Considering a CEO search in this asset class, private equity firms purchase (invest in) portfolio companies for several reasons. Some are to help the company prepare for a strategic sale, for an IPO (initial public offering), or to help it scale to the next level.
Access to capital is a key reason firms seek the help of the
PE firm, but that’s not all. Private equity firm leaders have lots of experience growing and supporting their portfolio companies and serve as advisors to those companies. Cross-portfolio collaboration also helps companies grow, scale, and manage risk.