The Executive Profile – The Who and Why?
The type of Operating Executive that Private Equity tend to be attracted to usually conforms to one of four profiles:
Chairman / CEO
- Superb network; obvious gravitas
- Often looking to leverage network, co-invest, add value in due diligence, take board roles.
- Help navigate a deal over the line.
Executive Leader
- Consistent track record of success
- Career on upward path
- Often seeking to move into first time CEO/Chairman role
- Culturally attuned to working with PE. May have worked more recently in board / advisory and pre deal due diligence situations
- Could be an Entrepreneur or have similar instincts to one
- Usually higher risk v reward motivation than the serial Board Executive.
Domain Expert
- Strong, world class, best in class functional experience and discipline (e.g. IT, Supply Chain; HR, etc.)
- Deep Market segmentation expertise and insight
- Thought leader, often with strong innovation attributes
‘The Entrepreneur’
- CEO or Team of Executives with natural; entrepreneurial instincts
- Superb market insight, know how and access
- Looking at higher reward, accepting of higher risk
- Demonstrable recent track record of impressive value creation
- Idea driven and lateral thinking
