[3] They are usually former CEOs, COOs, CFOs, chief revenue officers, management consultants, or some combination with market knowledge of PE, such as deal structuring, in the investment firm's target industries.
They typically focus on due diligence, strategic planning, commercial growth, operational efficiency, and financial controls.
In recent years, the industry has experienced increased pressure to drive operational value creation.
In other words, shifting focus from leverage and multiples arbitrage to increasing the fundamental operational, commercial, and financial performance of their portfolio companies.
As a result, operating improvement must translate into increased enterprise value to yield higher investment returns.