Synopsis
At the 11th Annual Private Equity New York Forum, session topics covered the entire spectrum of private equity investments. They ranged from sector-specific conversations on venture capital to discussions on global buyout opportunities and roundtables of leading global institutional investors discussing their specific investment appetites.
Yogendra Goyal, Chief Growth Officer, WNS, moderated an insightful panel discussion on “Portfolio Optimization & Value Creation - Tools & Strategies Leading Funds Use to Support Growth & Reduce Costs.” He was joined by a distinguished panel comprising industry leaders who highlighted portfolio optimization’s vital role in navigating the challenges faced by companies across diverse industries.
Panelists
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Amanda Good, Partner, Head of Global Value Creation, Searchlight Capital Partners
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Eric Filipek, Managing Partner, Savant Growth
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Dan Ginsberg, Managing Director, SGS Maine Pointe
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Ajay Parkhe, Managing Director, Cinven
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Dan Goetz, Managing Director, Siris Capital
Key Takeaways
During the thought-provoking conversation, three key areas emerged that need to be prioritized for creating sustained value in portfolio companies:
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) improvement is critical, and focusing on the ‘small’ changes often creates long-term value. Companies should collaborate with strategic partners in areas where they may not have the expertise, especially in supply chain optimization. This will enable them to drive improvement in the cost of goods sold and overall Selling, General and Administrative (SGA) expenses, leading to long-term value creation.
- Understanding Talent Gaps across various disciplines within an organization is essential. The active involvement of executives and line managers in shaping the people strategy is crucial to creating sustained value. For example, many Private Equity firms are increasing equity performance to reduce turnover, incentivize long-term value, and institute an ‘owner’ mindset and shares values.
- Generative AI and Automation must be embedded as a long-term strategy. Portfolio companies, at a minimum, need a point of view around these technologies and should provide suitable training to employees. Embracing these technologies can enable businesses to enhance operational efficiency, improve decision-making processes, and explore new avenues for growth and innovation.
To know how WNS can help you accelerate Portfolio Optimization and create sustainable value, contact our experts.