Private Equity – Top Value Creation Initiatives for Portfolio Companies

What is the top Value Creation Area for PE Operating Partners?

See the chart below – the single biggest area is: “Sales, marketing, and revenue growth”.

Growing revenue will lead to EBITDA improvements and Multiple Expansion which both drive real value for PE portfolio companies.


Source: PEI – Private Equity Value Creation in 5 Charts

There is a surge in demand for Operating Partners in Private Equity (source).

However, while “Sales, marketing, and revenue growth” is the #1 Value Creation area, unfortunately the background of most PE Operating Partners coming from the Sales & Marketing side is only 8%.