How private equity firms leverage their networks

The Brief
Private equity firms provide value to their portfolio companies beyond the initial investments. They offer expertise and, when necessary, governance. But firms are only doing half their job if they don’t mine their considerable networks to help their portfolio companies grow and scale.
Image credit: suphakit73/iStock

For private equity firms, investment in their portfolio companies doesn’t cease once the funds have been deposited. Rather, firms are becoming increasingly involved in business decisions, including expansion, strategy and governance. And portfolio companies seem to be happy with the attention–in one survey, 90 percent of CEOs indicated that their private equity firm had had a positive effect on their company.

Portfolio managers looking to expand their role without draining all their time and energy should be leveraging one of their most powerful resources: their networks. Connections, both informal and formal, can be utilized in all areas of portfolio management. In RelSci’s most recent white paper, we examine the role relationship capital plays in portfolio management and business growth. In addition, we also discuss: 

  1. How private equity firms provide value to their companies through relationships
  2. How firms can leverage their networks to better position their portfolio companies
  3. The one area where all firms could be doing more to help grow their investments

Interested in learning what your firm’s network can do for your portfolio companies? Download our free white paper, “How private equity firms leverage their networks.”

RelSci helps create competitive advantage for leading corporate, financial and nonprofit organizations through a crucial yet vastly underutilized asset: relationship capital with influential decision makers. ????
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