EMPOWERING GROWTH WITHIN GLOBAL PRIVATE EQUITY
Executive Search & Advisory for Investment, M&A and Finance Leadership Current Mandates
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Investment Practice
Altus Partners has deep rooted relationships with an enviable range of Private Equity General and Limited Partners. We focus on searches for both Investment and Investor Relations professionals, from analyst through to Director Level...
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Altus Partners dedicated Portfolio practice was created in response to numerous specific requests from our buy-side clients, who also wanted our continued high standard of service to support their portfolio companies. We have now built an...
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Fund Finance & Inv. Operations Practice
Altus Partners Fund Finance and Operations have built an exceptional reputation for it’s deep-rooted knowledge and network of the finance and operations market across Europe...
News and insights
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ImpactTALENT IS EVERYWHERE, OPPORTUNITY ISN’T
18 days agoIn our attempts to support the global strides being taken to address the unbalanced diversity scales in the workforce, AltusPartners were pleased to partner with 10,000 Black Interns in our first-ever internship program in support of young black talent in the corporate world.Purpose-driven approach To be candid, diversity initiatives will only bear significance if planned and executed with sincerity. In this case, this means, firstly acknowledging that there is an imbalance of minority ethnic groups in the workplace. Is it a challenge? – absolutely! But the better question remains - to what extent are we disabled by this? We have an incredible opportunity to influence tremendous change for black talent wishing to enter the working world. This emphasises the need to give less attention to the weight of the issue at hand and adopt a forward-thinking and collaborative approach in addressing one of the world’s greatest concerns – inequality. This is the simplicity of our purpose. What do we need to achieve diversity?Diversity will carry varying meanings per organisation, but its value is always praiseworthy. Therefore, there should never be a need to conform to collective approaches to diversity. It is important to critically evaluate your workforce by qualitative and quantitative metrics, and through a gap analysis, understand what can be introduced to achieve diversity. Designing diversity policies is the next step, but the real test is the implementation – can we attest to diversity being achieved at an employee, customer, and stakeholder level?So, to make this a reality, a #Forbes study suggested four simple steps:1. Clearly identify what you are trying to achieve – there need not be an array of diversity goals. Simple achievable milestones will be more encouraging and effective versus elaborate goals which may need constant refining and lengthier timescales.2. Avoid “copy and paste” – appreciate and embrace the authenticity of your organization and that diversity can carry its own meaning versus your peers. 3. Implementation supersedes good design – whilst the strategy is important, the implementation needs to be well-thought-out including mitigation plans and any realignment. A diversity plan will not succeed if people lack the tools, skills, and motivation. 4. Win “hearts and minds” – individuals who fail to truly acknowledge the value of diversity will cripple any chances of success so it is important to sensitively encourage others and realise that this really calls for a shift in perspective – which can take time. Value of supporting diversity programs There is undoubtedly the opportunity to meaningfully impact the life of someone, and hopefully create a domino effect, be this amongst communities of up-and-coming black talent or how organisations start rethinking their DE&I strategies. For us, it was both – we were fortunate to be reminded of the importance of inclusivity and how we need to adopt and encourage more equitable opportunities at all stages of the employment lifecycle, in order to create and sustain diversity.We were also left with encouraging feedback from our intern, Isaac Olubiyi, which motivates us to continue with such initiatives. “My experience at Altus Partners was an enjoyable and rewarding one, to say the least. The skills I learnt during my time there are skills I can utilise for a lifetime due to the ease of transferability of the skills e.g., how to be efficient with your time when working towards a deadline yet still yielding high-quality work. I also understood the importance of building rapport with clients as well as going the extra mile for them to meet their requirements. Being at the office was also a pleasurable experience, I have nothing but good things to say regarding my colleagues and I wish them all the best in the future.”By having Isaac as a part of our business, we welcomed new perspectives, deeper social cohesion, and creativity.About 10KBI Led by some of the most powerful advocates for empowering young black talent, 10KBI quickly grew from an initial commitment of 100 interns to now 10,000. They are the fastest growing black talent pipeline in the U.K. alone and sincerely committed to not only affording this minority ethnic group credible opportunities but to address the apparent ethnic imbalances which need immediate and ongoing attention in most workforces. Should you wish to learn more about our personal experience, feel free to reach out to GizelleMoodley who is best placed to guide you on the opportunities and value of such an initiative, as well as key learnings which we found as critical to a successful experience for interns. #10KBI are hosting a series of weekly information sessions, until the end of September, which will cover the timelines, recruitment requirements, and expectations and a Q/A session at the end. You are welcome to register via the following link - Webinar Registration - ZoomIf you are already committed and prepared to hire an intern, you are welcome to pledge your interest via the following link - pinpoint-10kbi.com/programmes/1/company_submissions/new
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CareersINSIGHTS: MASTERING THE PRIVATE EQUITY INTERVIEW PROCESS
about 1 month agoUnlike conventional interviews, Private Equity interviews are uniquely designed to assess your potential for excelling in a challenging role that demands a distinct set of skills and behaviours. To distinguish yourself, you must skillfully navigate three pivotal stages: the initial interview, the modelling test, and the coveted case study.As you step into the first stage of the Private Equity interview process, the focus is on you, probing and delving into your potential suitability for Private Equity. This critical juncture first step serves as a canvas for you to showcase your background and experiences, unveiling how they can uniquely contribute substantial value to the esteemed role of a private market investor.Gone are the days of merely listing accomplishments; instead, the interviewers seek a tapestry of insights, interweaving your past endeavours with the specific expectations and challenges of the Private Equity domain. Demonstrating a profound understanding of how your previous experiences align with the intricacies of Private Equity investment is significant At this pivotal moment, your ability to exhibit commercial acumen takes centre stage, showcasing your grasp of market trends, industry dynamics, and the delicate balance between risk and reward. Moreover, the interviewers anticipate your display of strategic thinking, appreciating your foresight in identifying potential investment opportunities and your vision for navigating technical, commercial, and stakeholder complexities. In this realm of high-stakes decisions, your knack for recognising lucrative investment prospects becomes instrumental in setting you apart from the competition. Demonstrating an astute understanding of the factors that influence successful investments, such as sound financial analysis, robust due diligence, and an ability to foresee potential growth drivers, solidifies your position as a promising candidate.Analyse the fund’s portfolio companies, track record and associated news. Prepare intelligent questions!To comprehensively analyse the fund's portfolio companies, track record, and associated news, you must delve into each aspect meticulously to gain valuable insights. With a well-rounded understanding, you can prepare thoughtful questions demonstrating your thoroughness and strategic thinking during interviews or investment discussions.Portfolio Companies Analysis:Business Model and Market Positioning: Assess the portfolio company's business/ investment model, understanding its unique value proposition and how it differentiates itself in the market. Financial Performance: Analyse accessible financial statements of the portfolio companies, focusing on revenue growth, profitability, and key financial ratios. Ask about any significant fluctuations or trends that have impacted their financial performance.Management Team: Learn about the expertise and track record of the management team driving each portfolio company. Inquire about their vision and strategies for future growth.Risk Mitigation Strategies: Explore how the fund mitigates risks associated with the portfolio companies. Ask about the due diligence process and measures taken to ensure long-term sustainability.Fund Track Record Evaluation:Investment Returns: Analyse the fund's historical investment returns, focusing on the performance of previous investments. Inquire about any standout successes or lessons learned from past deals.Exit Strategies: Understand the fund's approach to exiting investments. Ask about the methods used to achieve successful exits and the average holding periods for portfolio companies.Sector and Geographical Focus: Gain insights into the fund's focus on specific sectors and regions. Ask about the rationale behind these choices and how they align with the fund's overall strategy.Investment strategies: Explore the funds’ investment strategies, i.e. Co-investments/ FoF/ Direct – minority or majority, and how these collaborations have contributed to the fund's track record.Associated News Analysis:Market Trends Impact: Investigate recent market trends and industry developments that might impact the fund's portfolio companies. Ask about strategies in place to adapt to changing market conditions.Regulatory Environment: Understand any regulatory changes that could affect the fund's investments and how they are addressed to ensure compliance.ESG and Sustainability Practices: Assess the fund's commitment to Environmental, Social, and Governance (ESG) principles and sustainability practices. Ask about initiatives to incorporate responsible investing strategies at the investment evaluation stage and across portfolio companies.By meticulously analysing the fund's portfolio companies, track record, and associated news, you can develop well-crafted questions demonstrating your in-depth understanding of the investment landscape. These questions will showcase your keen analytical skills, genuine interest in the fund's performance, and commitment to responsible investing practices.Develop a well-thought-out view of intriguing sectors or industries and articulate their investment appealDistinguishing yourself as a standout candidate entails cultivating well-informed opinions on sectors or industries that capture your interest and align with the fund's investment focus. Dedicate time to thoroughly researching and analysing these areas, drawing on market insights, macroeconomic trends, and projections of future growth prospects.During the interview, demonstrate your deep understanding of these sectors or industries by articulating compelling reasons behind your interest in them. Back up your opinions with data-driven evidence and concrete examples to reinforce your credibility as a thoughtful and strategic thinker.By presenting your perspectives with clarity and conviction, you will skillfully showcase your ability to think critically and strategically within the context of Private Equity investments. Highlight how your well-reasoned opinions align with the fund's investment strategy and how they can contribute to identifying and capitalising on lucrative opportunities.Moreover, offer an in-depth analysis of the challenges and opportunities in these sectors or industries, indicating your capacity to navigate complex investment landscapes and anticipate potential risks and rewards. Discuss emerging trends, disruptive technologies, and regulatory shifts that might impact the investment landscape.Demonstrating a comprehensive understanding of the nuances of these sectors will not only impress the interviewers but also solidify your position as a valuable asset to the fund. Showcase your ability to synthesise information, make data-driven decisions, and identify unique value propositions within the target sectors.In summary, cultivating informed opinions on intriguing sectors or industries goes beyond a superficial interest; it is essential to present yourself as a well-prepared and strategic candidate. Embrace the opportunity to showcase your expertise, and let your thoughtful insights shine as you articulate the investment appeal of these sectors in the realm of private equity.Research and demonstrate a list of investment-worthy companies and one or two more leftfield options!To set yourself apart as an exceptional candidate, carefully create a list of companies that smartly align with the investment thesis of the Private Equity firm. This thoughtful selection process demands a keen eye for identifying enterprises with promising growth potential, solid financial foundations, and sustainable competitive advantages that can weather market fluctuations.Demonstrate your astute judgment by conducting thorough research and due diligence on each potential investment opportunity. Scrutinise their revenue streams, profit margins, debt levels, and overall financial health to ensure they meet the stringent criteria for Private Equity investments.Moreover, delve into the qualitative aspects of these companies, such as their leadership teams. Highlighting these integral components will illustrate your ability to think strategically and make informed investment decisions.Equally crucial is your ability to identify mispriced opportunities in the market—those hidden gems overlooked by mainstream investors. Unearthing undervalued assets with the potential for significant yield underscores your perceptive nature and distinct ability to identify opportunities which are often overlooked. Imagine analysing market trends, industry disruptions, and other factors contributing to market mispricing. By showcasing your ability to spot these opportunities, you illustrate your value in capitalising on untapped potential and unlocking hidden value within the portfolio.During the interview, confidently articulate your rationale behind each company's inclusion in your list. Emphasise how their unique attributes align with the firm's investment strategy and complement the broader vision of the Private Equity fund.Gain In-Depth Insight into the Factors That Make a Market Appealing to Private Equity InvestorsTo thrive in Private Equity, it is imperative to delve into the multifaceted elements that entice investors to specific markets. Embark on a comprehensive investigation to comprehend the critical attributes of Private Equity investment strategies. With this knowledge, you will showcase your ability to strategically discern and assess lucrative investment opportunities.Favourable Regulatory Environments: Investigate the regulatory landscape of target markets, discerning the extent to which favourable policies encourage and support Private Equity investments. Look for jurisdictions that offer business-friendly regulations, tax incentives, and investor protections, as these elements foster a conducive investment climate.Robust Growth Potential: Analyse the growth prospects of potential markets, seeking industries and sectors with promising upward trajectories. Markets exhibiting consistent expansion and flourishing demand particularly appeal to Private Equity investors as they offer substantial opportunities for value creation and capital appreciation.Strong Industry Tailwinds: Identify markets with industries experiencing strong tailwinds driven by technological advancements, changing consumer preferences, or disruptive innovations. Such industries are more likely to offer high-growth potential and attractive investment prospects.Conducive Exit Options: Evaluate the exit options available in a market, as the ability to realise returns on investments is a crucial aspect of Private Equity strategy. Markets with vibrant IPO (Initial Public Offering) and M&A (Mergers and Acquisitions) landscapes provide desirable exit avenues, enabling investors to monetise their investments successfully.Macro-Economic Factors: Consider broader macroeconomic trends, including GDP growth, inflation rates, and currency stability, as they can significantly influence the overall investment climate of a market. Markets with stable economic fundamentals tend to attract more Private Equity interest.During the interview, demonstrate your acute awareness of these factors that attract Private Equity investors. Articulate how you assess potential investment opportunities based on these attributes, showcasing your ability to identify markets more likely to deliver robust investment returns.Furthermore, emphasise your capacity to navigate the complexities of various markets and pinpoint the optimal investment destinations. This ability reflects your strategic thinking and ensures that the fund's resources are channelled towards markets that offer the most promising risk-reward profiles.Prepare for Spot Questions: Brain Teasers and Math-Based ChallengesDuring initial interviews, it is essential to be ready for spot questions that may include brain teasers or math-based challenges. These questions are commonly encountered in interview processes for consulting companies like Bain or McKinsey. Remember, the purpose of these questions is not solely to test your knowledge but to assess your thought process and how you approach problem-solving with a structured and thoughtful mindset.When confronted with brain teasers, take your time to comprehend the question thoroughly. Avoid rushing into an answer and focus on breaking down the problem step-by-step. Articulate your thought process aloud, demonstrating your ability to approach the question methodically and logically. Refrain from disheartening if your initial answer is incorrect; these questions are intentionally designed to challenge you. If you make a mistake, take it as an opportunity to showcase your resilience and adaptability. The interviewer may provide feedback, observe how you handle it, and use it to improve your subsequent responses.Likewise, be prepared for "rough and ready" math-based questions, such as calculating the Internal Rate of Return (IRR) or fundamental arithmetic problems. The goal is to test your mathematical skills and observe how you react under pressure. If you need a moment to gather your thoughts, don't hesitate to pause and gather your bearings. Demonstrating composure under pressure and showing your ability to think through the problem systematically will be appreciated by the interviewer.Maintain Unwavering Focus and Engagement Throughout the Interview ProcessA thriving investor embodies a delicate balance of commercial acumen, intelligence, foresight, and interpersonal traits. As you embark on the journey to become a successful investor, remember that your ability to influence positively plays a pivotal role in your success. Throughout the interview process, especially in the crucial first stage, being fully engaged, motivated, and upbeat is paramount.The role of a private market investor demands not only astute financial judgment but also the capacity to forge strong connections with the management teams of investable companies. As you vie for investment opportunities, often against fierce competition, your ability to articulate your vision, build rapport, and convey your value as a strategic partner will set you apart.Furthermore, engaging effectively with the portfolio company's C-suite is indispensable once investments are made. You must collaborate with them, aligning interests and fostering a growth-oriented environment that drives success. Effective communication, a positive outlook, and a solution-oriented approach will be instrumental in achieving these goals.Apart from the investable companies and portfolio C-suite, the successful investor interacts with a network of advisors, ranging from expert networks to lawyers and investment banks. Engagement and motivation throughout the interview will demonstrate your ability to forge meaningful relationships with these essential players, ensuring a well-rounded and successful investment journey.In the first stage of the interview, making a lasting impression depends on your unwavering focus and genuine enthusiasm for the opportunity. Clearly articulate your investment philosophy, showcase your ability to navigate challenges, and demonstrate a passion for driving growth and value creation. Your upbeat demeanour and positive attitude will instil confidence in the interviewers and emphasise your potential as a valuable addition to the investment team.ConclusionIn conclusion, the advice provided here offers a comprehensive array of considerations, although it's worth noting that not all interviews will delve into every aspect mentioned. This guidance stems from a wealth of input from candidates and interviewers spanning numerous interviews. Navigating the intricacies of the Private Equity interview process is a journey that demands a multifaceted approach and unwavering dedication.As you advance through the initial rounds, keep in mind that Private Equity interviews deviate from the conventional. They are designed to gauge your potential for excelling in a dynamic, fast-paced role. Embrace the chance to spotlight your abilities and allow your professional passion for Private Equity, along with your adeptness in strategic thinking, to shine through. By diligent preparation, a display of your expertise, and a consistent conveyance of genuine enthusiasm, you will undoubtedly stand out as an exceptional contender in the competitive realm of Private Equity.Remember, every interaction serves as an occasion to leave an indelible mark and embark on a gratifying journey as a prosperous investor in the private market. Your journey towards success in the Private Equity landscape starts here, and your potential is boundless.For more insights and advice, contact Altus Partners:
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unconscious biasALTUS PARTNERS INTRODUCES PACE - A GAME-CHANGING TECHNOLOGY FOR PRIVATE EQUITY
about 2 months agoPrivate Equity investors require unique skills to navigate the complex and fast-paced industry. That's where the PACE assessment tool comes in. Designed exclusively for the Private Equity sector, PACE has delivered several thousand assessments to date, helping identify and develop the key competencies needed for success. Following the recent acquisition of Altus Partners by The LCap Group, Ed Chamberlain, CEO of Altus, and Sam Roberts, Chief Strategy Officer at LCap Group, took a deeper dive into PACE and how the innovative technology can deliver substantial value to the clients of Altus Partners.- Altus Partners was acquired by LCap Group in June 2023 - LCap Group has a strong portfolio that includes Drax Executive Search, Rowan Group, and Leadership Dynamics - Integration with these brands promises an expansive shared network and knowledge base - PACE, an assessment tool, designed by LCap exclusively for the Private Equity sector, has delivered several thousand assessments - PACE will now be offered exclusively to Altus Partners Private Equity clientele for enhancing their funds and portfolio companiesEC: Sam, we are delighted to be an LCap company and excited to be able to offer the proven technology – PACE, to our clients. Can you provide an overview of the PACE Evaluation and its role within the platform?SR: Thanks, Ed, and welcome to the Group! The PACE Evaluation is a comprehensive evaluation developed by LCap that assesses the behavioural traits and potential of leadership teams and individuals within leadership positions. It plays a central role within the LCap platform by providing valuable insights into leadership capabilities, strengths, and development areas. The assessment is designed to help our clients identify and nurture leadership talent, improve decision-making in leadership appointments, and enhance leadership effectiveness. We can now offer Altus Partners clients the ability to use this technology to make more informed decisions. EC: How was the PACE Model of Development developed, and what were the key factors considered during its creation?SR: The PACE Model of Development was developed, over several years, through rigorous research and collaboration with leading occupational psychologists and academic experts and is the result of the largest study of its kind globally. The key factors considered during its creation included the review of existing research. This is where the development team extensively reviewed existing research on leadership traits, behaviours, and the factors influencing leadership success. We also carried out a Private Equity Leadership Study, collecting data from hundreds of leaders across roles and industries to ensure the model's applicability and relevance across various contexts. And finally, a Psychometric Analysis. This is where the assessment underwent psychometric analysis to ensure its reliability and validity. The model was validated through longitudinal studies and feedback from real-world leadership experiences. EC: What distinguishes the PACE framework from other leadership assessment tools in the market?SR: The PACE framework stands out from other leadership assessment tools in the market due to its Value Creation Centric Approach. The PACE evaluation comprehensively assesses various behavioural traits, potential, and development needs of individuals in leadership positions on a value-creation journey. We unapologetically focus on the business success, not the harmony in the team.Further to this, its one of a kind Private Equity-Specific focus. The PACE framework is specifically tailored for the private equity industry, making it highly effective for clients in this sector. It is also research-backed, with the model being based on extensive research and collaboration with experts, ensuring its accuracy and reliability. And finally, the model takes a longitudinal Perspective. This means the assessment considers the long-term development of individuals, providing insights into potential growth and sustained leadership effectiveness. EC: Can you explain the relationship between behavioural traits and successful value creation by senior leadership teams, as demonstrated by the PACE Model?SR: The PACE Model demonstrates that specific behavioural traits and competencies in senior leadership teams strongly correlate with successful value creation. Traits like growth mindset, curiosity, internal locus of control, self-monitoring, resilience, and the ability to foster collaboration and intuition are key drivers of value creation within private equity-backed businesses. By understanding and developing these traits in leaders, organisations can enhance their ability to make informed decisions, drive growth, and navigate challenges effectively, ultimately leading to increased value creation.EC: What research methodologies were employed to validate the effectiveness of the PACE assessment?SR: Great question, and this is core to the strength of the offering. The effectiveness of the PACE assessment was validated through three main research methodologies: face validity, concurrent validity, and predictive validity.Face validity refers to the degree to which an assessment appears to measure what it intends to measure on the surface. In the case of the PACE assessment, during its development phase, experts, occupational psychologists, and relevant stakeholders reviewed the assessment items and components to assess whether they appeared to be relevant and appropriate in evaluating leadership behaviours within the private equity industry. Their feedback and input helped ensure that the PACE assessment's content was aligned with the specific traits and competencies desired in successful leaders operating in the private equity sector.Concurrent validity assesses the degree of agreement between the results of a new assessment tool (in this case, the PACE assessment) and an already established and validated measure of the same construct. To establish concurrent validity for the PACE assessment, LCap, in partnership with Birkbeck College, administered the assessment to a sample of individuals in leadership positions within private equity-backed businesses. Simultaneously, they collected data from an existing, widely recognised and validated leadership assessment tool.By comparing the scores obtained from the PACE assessment with the scores from the established leadership assessment tool, the researchers could determine whether the PACE assessment shows a strong correlation and agreement with the existing measure. A high level of agreement would support the concurrent validity of the PACE assessment, indicating that it effectively measures similar leadership traits and competencies as the established tool.And Predictive validity assesses the ability of an assessment to predict future outcomes or performance based on its results. To establish predictive validity for the PACE assessment, LCap used the information of those who underwent the assessment and their business performance.By analysing the correlation between the PACE assessment scores and the leadership outcomes, we can determine that the assessment effectively predicts successful leadership performance within the private equity industry. Strong positive correlations between PACE scores and demonstrated leadership success indicate high predictive validity. Our research around behavioural concentrations – or groupthink – in this space is particularly significant.By employing face validity, concurrent validity, and predictive validity research methodologies, Leadership Dynamics could comprehensively validate the effectiveness of the PACE assessment as a robust tool for evaluating leadership traits in the private equity industry. EC: How did collaboration with leading occupational psychologists and academic experts contribute to developing and validating the PACE framework?SR: Collaboration with leading occupational psychologists and academic experts was instrumental in developing and validating the PACE framework in several ways. Their leadership research and assessment expertise provided valuable guidance in designing a comprehensive and reliable evaluation tool. Input from experts ensured the PACE model was based on the latest research and best practices in leadership assessment. Collaborators contributed to the validation process by conducting independent reviews and analyses of the assessment's effectiveness. And their work on applying non-psychological data to produce behavioural projections enabled us to produce accurate, arms length behavioural evaluations. EC: Could you give me some insight into the feedback received from private equity investment directors, executives, and non-executives regarding the PACE framework's application and relevance to their circumstances?SR: Feedback from private equity investment directors, executives, and non-executives regarding the PACE framework's application and relevance has been highly positive. Clients have reported that the assessment provided valuable insights into leadership potential, strengths, and developmental areas. The industry-specific focus of the PACE framework was particularly appreciated, as it allowed for tailored leadership development strategies in the unique context of the private equity sector. Clients also mentioned that the assessment contributed to more informed decision-making in leadership appointments and helped improve overall leadership effectiveness within their organisations. EC: How does the PACE assessment support clients in understanding why some individuals thrive in the private equity environment while others struggle?SR: The PACE assessment supports clients by providing in-depth insights into their behavioural traits and growth potential. The assessment identifies specific competencies and traits that align with success in the private equity industry, such as adaptability, resilience, divergent thinking, and the ability to manage ambiguity. By understanding individuals' unique characteristics and development needs, clients can tailor leadership development programs, coaching, and mentoring to maximize their effectiveness in the demanding and dynamic private equity environment. EC: Can you share any success stories or real-world examples where the PACE assessment has significantly improved leadership effectiveness and value creation within private equity-backed businesses?SR: Certainly, we’ve used PACE across LCap’s work with 142 PE funds and their portfolio companies in 2022. Broadly, there are four areas where PACE has had an impact.The PACE assessment helped identify high-potential leaders who might have otherwise been overlooked, allowing organisations to invest in their development and nurture future leadership talent. The assessment results also led to targeted development plans for senior leaders, addressing specific behavioural traits and competencies critical for value creation in the private equity context. And the PACE evaluation contributed to more informed decision-making in leadership appointments, resulting in leaders better suited to drive growth and success within private equity-backed businesses.Finally, by understanding the behavioural traits of their team members through PACE, senior leadership teams improved collaboration, communication, and decision-making, leading to more effective value creation. EC: Thank you, Sam, for those incredibly informative insights. Last question, how can our clients access more information on PACE?SR: Contact any Altus Partners Consultant, or email us at info@altus-partners.com, and we will set up a meeting with our expert team, who will walk you through how the tool may work for you.
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Private EquitySPOTLIGHT: THE RESILIENCE OF THE PRIVATE CAPITAL LANDSCAPE - NAVIGATING CHALLENGES AND UNVEILING OPPORTUNITIES IN 2023 AND BEYOND
2 months agoThe private markets experienced a whirlwind of events in 2022, with fundraising activities navigating through contrasting trends. Despite formidable challenges like high inflation, interest rate hikes, geopolitical uncertainties, and the denominator effect, fundraising managed to achieve a commendable milestone, reaching $1.2 trillion, a figure on par with pre-pandemic levels. However, this marked an 11.4 percent decline from the previous year's record-breaking total of $1.4 trillion. As we embark on the journey of 2023, the private capital fundraising environment remains challenging, with early data suggesting that new records may be unlikely.Challenges Confronting Emerging Managers:Emerging managers, typically defined as asset managers raising three or fewer funds firmwide, have felt the brunt of the fundraising slowdown. Historically, these managers accounted for around 30.5% of total assets raised, but their share has now diminished to approximately 16.9% over the last five quarters. Emerging funds in private equity and real assets have slipped below the 50% mark, while emerging VC has managed to maintain a slightly higher position. The plight of emerging managers is further exacerbated by their lack of prior fund performance to bolster their pitches, making it challenging to secure commitments from cautious investors.Time to Close Funds:The timeline for funds to reach final closings has generally shown stability over the years, with a median of 12 to 13 months. However, a concerning trend is a widening gap between the fastest and slowest fund closures, indicating a more intricate fundraising environment. In 2023, top quartile funds took a staggering 19.8 months to close, while bottom quartile funds only required 4.6 months, resulting in a significant 15.2-month disparity. This disparity suggests that limited partners (LPs) are becoming increasingly discerning and prudent in their investment decisions, leading to extended fundraising periods for some managers.Years Between Final Closings:The median duration between final closings in a fund family has exhibited a flat to declining trajectory over the years, with recent data pointing to an average of 2.2 years. Notably, this figure is lower than the 2011-2014 period, during which it exceeded three years. While recent fundraising challenges may be cause for concern, the data suggests that it could be a return to a more typical long-term trend rather than a problematic industry-wide issue. It is important to note that struggling funds may not even make it into the data, creating a downward bias in the statistic for funds that successfully close.Regional Trends:Asia's share of global capital raised has experienced a significant decline, plummeting from 31.3% in 2018 to a mere 8.2% in 2023. This sharp decline may be attributed to geopolitical tensions and economic impacts from events such as the war in Ukraine. Similarly, Europe's share has also diminished, with only 17.5% of global capital raised in 2023. In contrast, North America has managed to maintain its share of global capital raised, reaching an impressive 76.4% in 2022. This resilience in North America may be attributed to institutional investors seeking a haven from the volatility of public markets.Impact of Larger Funds:In recent years, funds larger than $1 billion have garnered a larger share of capital commitments, reaching approximately 65% since 2013. The definition of mega PE funds has evolved from $1 billion-plus to $5 billion-plus, reflecting the need for larger funds capable of handling more substantial deals. However, this trend may also be leading to the completion of larger deals, necessitating even more massive funds to write these substantial checks. It is essential for fund managers to carefully assess the potential implications of such developments on deal sizes and market dynamics.Challenges and Opportunities Ahead:The private capital fundraising landscape poses formidable challenges that demand agility and innovation from fund managers. Successfully navigating through changing market conditions and comprehending regional dynamics will be pivotal for fundraising success. Establishing trust and credibility with investors through transparent and responsible investment practices will be paramount. Fund managers that adeptly navigate these complexities and embrace innovation, such as tokenized funds and structured vehicles, will be positioned to thrive in the evolving world of private markets.Conclusion:While 2023's private capital fundraising environment may not break records, it presents challenges and opportunities for fund managers. By adopting a strategic and adaptive approach, understanding regional trends, and cultivating robust investor relationships, fund managers can surmount obstacles and achieve sustained growth and success for themselves and their investors. Embracing technological advancements and staying attuned to market dynamics will be vital to thriving in the ever-evolving landscape of private markets in 2023 and beyond. As the landscape shifts, fund managers who embrace change and seize opportunities will pave the way for a resilient and thriving private capital ecosystem.Discover Your Perfect Investor Relations Team with Altus Partners:At Altus Partners, we take pride in our specialisation in Investor Relations and Distribution search. Whether you are a global fund or an emerging manager in Europe, we are here to support your journey to success. If you are seeking to build an exceptional Investor Relations team or searching for your ideal role in this dynamic field, look no further. Our dedicated team of experts is ready to assist you every step of the way.Contact Altus Partners today and let us help you unlock the full potential of your private capital fundraising endeavours. Contact us at:Let's pave the way for your future in private markets together. Contributions: McKinsey Private Equity Report 2023. Pitchbook Private Markets Fundraising Report Q1 2023
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Executive SearchALTUS PARTNERS ANNOUNCES LAUNCH OF DATA & ANALYTICS EXECUTIVE SEARCH PRACTICE
3 months agoAltus Partners is pleased to announce the launch of its Data & Analytics Practice. The new practice will connect private equity firms and their portfolio businesses with highly skilled professionals in data engineering, data science, machine learning, business intelligence and commercial analysis.In today's data-driven business landscape, organisations recognise the immense value of reliable and actionable data insights. The demand for talented data and analytics professionals has surged as companies strive to leverage their data effectively to make informed and critical business decisions. Altus Partners aims to bridge this talent gap by providing comprehensive Executive Search services tailored to the data and analytics sector.The Data & Analytics practice at Altus Partners will primarily support private equity firms and private equity-backed businesses in fulfilling crucial roles such as Chief Technology Officer (CTO), Chief Data Officer (CDO), Data Director, and Data Vice President (Data VP). By assisting in these critical appointments, Altus Partners enables firms to harness the power of data and analytics to inform decision-making processes throughout the investment lifecycle, including pre-deal due diligence and the hold phase."Data-driven decision-making has become a pivotal factor in determining the success of organisations across industries," said Ed Chamberlain, CEO at Altus Partners. "Private equity firms recognise the potential of data and analytics to drive growth, maximise performance, and unlock hidden value within their portfolio companies. Our Data & Analytics Executive Search Practice will provide a specialised and comprehensive approach to identifying top talent in this rapidly evolving field."Altus Partners understands that a data-centric approach not only accelerates execution and fosters accountability but also uncovers new growth opportunities while ensuring sustainable value creation over the investment horizon. With the ability to track progress and identify areas of improvement, data-driven insights play a vital role in optimising performance and enhancing decision-making strategies."At Altus Partners, we believe that rigorous data and analytics capabilities are essential for companies to maintain their competitive edge," stated Roddy Coltart, Head of the Data & Analytics Practice. "Our team has an in-depth understanding of the industry's evolving needs and the skill sets required to navigate complex data landscapes. We are dedicated to helping private equity firms build robust data and analytics functions by connecting them with the best talent available."In an era where big data and analytics present a continuous challenge in processing and interpreting vast datasets, professionals specialising in data engineering are crucial. These experts are uniquely qualified to transform complex raw data into valuable insights and leverage data visualisation techniques to present findings clearly and comprehensively. Proficiency in tools like SQL, data mining, data management, data warehousing, data modelling, data architecture, data governance, and data quality is paramount for success in this field.The launch of Altus Partners' Data & Analytics Practice marks a significant milestone in the firm's commitment to providing comprehensive recruitment solutions tailored to the evolving needs of the financial industry. By connecting private equity firms with top talent in data and analytics, Altus Partners aims to empower organisations to leverage data as a strategic asset and drive sustainable growth.For more information about Altus Partners and their new Data & Analytics Executive Search Practice, please visit www.altus-partners.com or contact Roddy Coltart Roddy@altus-partners.com.
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DiversitySPOTLIGHT: EMBRACING DIVERSITY, EQUITY, AND INCLUSION: WHAT IT MEANS FOR YOUR BUSINESS
4 months agoUnravelling the Impact of DE&I in Private EquityToday's progressive funds and businesses actively prioritise and champion diversity, equity, and inclusion (DE&I). While this triad is broadly understood and endorsed, the intersection of these concepts, particularly their influence on business outcomes, remains an area ripe for exploration. In particular, what DE&I means to your fund or business. The tripartite ecosystem of General Partners, Limited Partners, and portfolio companies in Private Equity can thrive by adopting a robust diversity framework. This framework enables diverse talent to foster meaningful connections, leading to the formation of high-performing teams. The efficacy of such teams is made evident through quantitative measures—such as innovative financial structuring, superior investment returns, and reduced risk across portfolio companies — and qualitative metrics, like elevated employee morale and stakeholder satisfaction. Therefore, emphasising DE&I signals a Private Equity fund's dedication to nurturing a positive and inclusive work environment. Making a Business Case for Diversity, Equity, and InclusionGiven the inherently collaborative nature of business operations, incorporating DE&I strategies alongside broader business objectives is essential. Diversity should not be considered a side issue but rather a powerful enabler. This starts by fostering an inclusive and equitable space for underprivileged and minority groups spanning various categories, including gender, ethnicity, culture, socioeconomic status, sexual orientation, and neurodiversity. By providing equal and accessible opportunities to these groups, a fund will likely embark on a path to success, with the benefits manifesting in improved investment returns and risk metrics.Exemplary Investment ReturnsSince perspectives and skills are inherently subjective, a diverse team offers a broader range of experiences and viewpoints, leading to stronger returns. An IFC study underscores this assertion, stating that teams with higher gender representation in leadership positions have been statistically shown to yield higher valuation multiples and superior returns. Specifically, venture capital-backed companies in emerging markets have demonstrated a 1.6x increase in their step-up valuation or distinct valuations between financing stages. The step-up valuation is 5% higher for gender-balanced leadership teams versus teams comprising 10 – 30% women, and it is 13% higher than leadership teams with less than 10% women (von Friedeburg et al., 2019). Additionally, diverse teams often boast an expanded network, facilitating smoother integration, partnerships, and negotiations, premised on shared understanding and familiarity. Superior Risk-Adjusted PerformanceA 10% increase in diversity within a specific timeframe led to an approximately 1.5% boost in IRR in the realm of Venture Capital (Gompers et al., 2019). Buyout funds with even a single female member benefit from a 12% IRR increase and a 0.52x higher TVPI than all-male teams (Gottschlag, 2019). Furthermore, buyout funds led by teams diverse in gender, age, and nationality tend to generate higher returns and multiple expansions (Mirchandani, 2022). EY's research also indicated that lead partners from diverse sociodemographic backgrounds in Private Equity funds contribute positively to the performance of buyout funds. Boards exhibiting gender diversity tend to demonstrate more consistent financial policies and lower risk (Bernile, et al., 2018). These statistics and studies reinforce the correlation between diversity and superior risk-adjusted performance. Conclusion:Although significant progress remains, Private Equity funds that seriously and consistently leverage their DE&I strategies have successfully built diverse teams have achieved commendable financial outcomes. The range of areas where diversity can be implemented is vast, allowing for innovative approaches to this crucial issue and demonstrating its attain.We call upon business leaders, human resource professionals, and every passionate individual ready to take action on DE&I to reach out to Altus Partners, your experienced guide in this transformative journey. With our extensive industry knowledge and expertise in developing impactful DE&I strategies, Altus Partners can help you integrate these practices seamlessly into your business or fund.Every effort counts, every person plays a role, and every organisation can benefit from an expert hand to guide them. It's time to lead with DE&I, and Altus Partners stands ready to help you navigate this critical initiative: info@altus-partners.com
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Private EquityALTUS PARTNERS ANNOUNCES THE PROMOTION OF DYLAN ROSSER TO ASSOCIATE DIRECTOR WITHIN THE FUND FINANCE AND INVESTMENT OPERATIONS PRACTICE
4 months agoAltus Partners, a leading Executive Search firm in the private equity industry, is proud to announce the promotion of Dylan Rosser to the position of Associate Director within the Fund Finance and Investment Operations Practice. Dylan has played a pivotal role in the success of Altus Partners, showcasing a high level of rigour and an unwavering focus on delivering exceptional quality candidates for CFO/COO and Investment Operations searches across Europe.Dylan Rosser has provided invaluable guidance and support to funds across Europe. His commitment to exceptional candidate quality and meticulous attention to detail have earned him recognition from CEO Ed Chamberlain. “Dylan has become a highly trusted advisor to several funds, consistently delivering outstanding results. It is great to recognise his hard work and dedication with this promotion”.Altus Partners operates as a unified, award-winning team, offering diverse expertise within the private equity industry. As the demand for identifying the right talent continues to rise, we remain dedicated to building a truly unique platform that delivers customised solutions to meet our esteemed clients' short and long-term needs.With a track record of completing over 1,000 executive searches, Altus Partners approaches every mandate with the same rigour, whether for a Board-level position, an Analyst hire, or an interim assignment. Our commitment to excellence extends to our best-in-class assessment process, which includes comprehensive testing and psychometric evaluations. By providing granular attention to detail, we ensure our clients receive the utmost precision in their talent searches.As we congratulate Dylan Rosser on his well-deserved promotion to Associate Director, Altus Partners remains steadfast in our mission to deliver exceptional talent and maintain our position as a leader in the Executive Search field. We continue to uphold our commitment to building lasting partnerships and providing unparalleled expertise to our clients.For media inquiries or further information, please contact:About Altus Partners:Altus Partners is a renowned executive search and recruitment firm specialising in the private equity industry. With a team of seasoned professionals and an unwavering commitment to excellence, Altus Partners has completed over 1,000 executive searches, providing tailored solutions to meet the unique needs of its clients. Through a meticulous assessment process and a unified, award-winning team, Altus Partners continues to deliver outstanding results and build lasting partnerships within the private equity community.
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Private EquityALTUS PARTNERS PROMOTES SAM BLOCK TO PRINCIPAL WITHIN THE INVESTMENT PRACTICE
4 months agoAltus Partners, a leading Executive Search firm specialising in the private equity industry, is delighted to announce the promotion of Sam Block to Principal within the Investment Practice. Sam has been instrumental in the success of Altus Partners, demonstrating exceptional execution ability and a steadfast commitment to identifying the most talented individuals for Private Equity funds across Europe.Sam Block's expertise lies in conducting investment team searches for a diverse range of Buyout and Growth Equity clients. His deep understanding of the private equity industry and unwavering dedication to delivering outstanding results have made him an invaluable asset to Altus Partners. Since joining the firm, Sam has consistently demonstrated his ability to build and maintain strong client relationships, delivering exceptional outcomes repeatedly.Altus Partners operates as a unified, award-winning team with a wealth of expertise spanning the private equity landscape. Our commitment to excellence and our unwavering focus on identifying the right talent has allowed us to complete over 1,000 executive searches, advising clients with equal rigour whether the mandate is for a Board-level position, an Associate hire, or an interim assignment.At Altus Partners, we recognise the critical importance of providing a comprehensive assessment process that ensures our clients receive the utmost attention to detail in their searches. To that end, we have implemented best-in-class testing and psychometric evaluations, offering a granular understanding of each candidate's capabilities and suitability for the role. This meticulous approach enables us to deliver a customised offering that caters to our esteemed clients' short and long-term needs.For media inquiries or further information, please complete the following form:About Altus Partners:Altus Partners is a renowned executive search and recruitment firm specialising in the private equity industry. With a team of seasoned professionals and an unwavering commitment to excellence, Altus Partners has completed over 1,000 executive searches, providing tailored solutions to meet the unique needs of its clients. Through a meticulous assessment process and a unified, award-winning team, Altus Partners continues to deliver outstanding results and build lasting partnerships within the private equity community.
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Private Equity IndustrySPOTLIGHT: UNDERSTANDING THE MARKET SENTIMENT IN EUROPEAN PRIVATE EQUITY: VALUATIONS, CHALLENGES AND RECRUITMENT IN 2023
4 months agoA recent survey (May 2023) of over 1000 European Private Equity professionals conducted by Altus Partners gave a perspective on the current sentiment surrounding private equity valuations, portfolio activity and recruitment in the European private equity market. Against the backdrop of a decrease in the European Private Equity deal count, how would the private equity professionals describe the trend in company valuations?Participants were asked to articulate the current trend in company valuations, set against the backdrop of a decrease in the Private Equity deal count in the region. The survey results illuminated an undercurrent of cautiousness that increasingly dominates the investment landscape in private equity.Out of the 1321 private equity respondents, a significant majority (62%) perceive that private equity valuations have dropped. This sentiment mirrors a broader market feeling of softening or a recalibration from a previously bullish market characterised by high private equity valuations. The changing dynamics in the private equity market could be a reaction to the decline in the deal count, which could be instigated by multiple macroeconomic influences such as geopolitical tensions, regulatory changes, or economic ambiguity. The recent Pitchbooks Europe report corroborates this analysis, with growth equity deals accounting for just 17.2% of deal count in Q1 2023 as already-high valuations and more expensive debt cause managers to turn away from multiple expansion strategies.Conversely, just over 20% of private equity respondents believe valuations have retained consistency despite declining deal count. This suggests that the drop in the deal count doesn't necessarily signal a bearish private equity market but could indicate a more selective investment approach. Investors might focus on strategies such as buy-and-build, over multiple platform acquisitions. Interestingly, a small group of private equity professionals (6%) believe that the valuations have risen, despite the decrease in the deal count. This signals that some investors are still identifying ample opportunities in the current private equity landscape, indicative of resilience or growth within specific sectors or niches, such as Healthcare or some aspects of Tech.Overall, the predominant sentiment suggests that the European private equity landscape is undergoing some recalibration. Market participants in private equity are leaning towards a perception of diminishing company valuations, though some maintain a more stable or even optimistic perspective.What are the biggest challenges within your fund or private equity-backed portfolio company?To better understand the complexities in the private equity landscape, our survey also inquired about the most pressing challenges within private equity funds or portfolio companies. The responses were varied, reflecting the multifaceted challenges encountered in different aspects of private equity investments.The data revealed that 'exit strategy timing' emerged as a common concern among the participants, with 17% of respondents indicating this as a significant challenge. The complexity of executing successful and timely exits has increased due to fluctuating market conditions, increased competition for high-value exit opportunities, and the evolving nature of the private equity market. In light of the decreased deal count and value reported in Q1 2023, private equity firms will likely focus more on securing a profitable exit strategy.Industry and market volatility was another significant challenge identified by the participants, with 11% of respondents highlighting this issue. This reflects the uncertainty and unpredictable changes that geopolitical events, regulatory changes, and macroeconomic situations can exert on deal structures, valuations, and the overall profitability of private equity investments. This element of unpredictability necessitates a dynamic and adaptive approach to investing in the private equity landscape.Deal origination and sourcing were also highlighted as notable challenges by respondents. With a decrease in the number of deals in the market, identifying and securing high-potential deals has become more competitive, necessitating a more proactive and innovative approach to deal sourcing. In response to the challenge of deal origination and sourcing, many private equity firms are embracing technological advancements to gain a competitive edge. The rise of data analytics and artificial intelligence (AI) is now playing a significant role in reshaping the methods by which these firms approach to deal sourcing.Considering the current challenging market conditions, how has it influenced your career plans?Given the challenging market conditions, career planning in private equity has become increasingly complex. The survey shows that 32% of private equity professionals are actively considering a job move driven by market uncertainties and the resulting challenges. This demonstrates the considerable impact that market conditions have on career decision-making processes. For these individuals, the challenges in the private equity landscape have sparked the impetus for change, potentially seeking opportunities in different sectors or exploring new roles within the industry that offer stability or promise better returns.However, an almost equal percentage of respondents (29%) indicated that their career plans in private equity remain unchanged despite the challenging market environment. This dichotomy reveals the divergent sentiments among private equity professionals. It highlights how challenging market conditions can polarise career intentions, prompting some professionals to consider job mobility while causing others to double down on their existing paths.Moreover, these divergent career plans within the private equity sector underscore the sector's dynamic nature and the broader implications of market shifts. Market conditions affect investment decisions and the career paths of the individuals who navigate this industry daily. The ripple effects of these market shifts can be far-reaching, influencing both the investment strategies at a macro level and the individual career trajectories at a micro level.As the European private equity landscape continues to evolve, it will be essential to watch how these career intentions manifest themselves within the broader context of the market. Will those seeking a job change find greener pastures, or will those who stay the course see their resilience pay off? Only time will tell, but one thing is certain: the private equity sector will continue to be a dynamic and challenging landscape that keeps its professionals on their toes.Insights and advice: As we navigate these intriguing times in the private equity landscape, informed insights and expert guidance become more crucial than ever. For comprehensive analyses of the European Private Equity Market and bespoke advisory on career development and leadership strategies within the sector, we invite you to contact us.At Altus Partners, we are dedicated to providing you with the most relevant industry updates and tailored advice to help you navigate the market complexities and make the right decisions for your career. Leveraging our deep industry knowledge and experience, we can guide you through the current challenges and prepare you for the opportunities ahead.Please don't hesitate to contact us:
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#ExecutiveSearchHARVEY VON BIEL PROMOTED TO PRINCIPAL IN THE INVESTMENT PRACTICE
5 months agoAltus Partners is delighted to announce the well-deserved promotion of Harvey Von Biel to Principal. Harvey has been an invaluable investment team member, reporting to Partner Ed Chamberlain, and has played a pivotal role in the firm's success in Executive Searches for investment professionals in private credit.With his exceptional skills and extensive experience, Harvey has been covering Europe and has been with the business for two years. During his tenure, Harvey has displayed a remarkable work ethic and an unwavering commitment to delivering exceptional results. His promotion is a testament to his hard work, dedication, and excellent performance on searches for a range of clients.Altus Partners is a leading Executive Search firm that specialises in Private Equity and Portfolio Companies. We provide a range of talent solutions across investments, corporate development, IR, and C-Suite roles. We are committed to delivering exceptional results and building long-term relationships with our clients based on trust, integrity, and partnership.The firm's commitment to excellence and exceptional service has been recognized through numerous awards, including Private Equity Wire's Best Buyside Executive Search Firm 2019 and AI Magazine's Best Buyside Executive Search Firm 2019 and 2020 and the Private Credit Awards in 2022. Altus Harvey's promotion is a testament to Altus Partners' unwavering commitment to recognising and nurturing talent within the firm. The firm is confident that Harvey will continue to play a crucial role in the team's success and looks forward to his continued contributions to the firm's growth. Partner Ed Chamberlain has expressed his best wishes for Harvey, stating, “I wish Harvey all the best in his new role, and I have no doubt that he will continue to excel and contribute to the success of the Investment Practice.”
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