How recent trends in portfolio level add-on origination could impact your role.
Private equity’s resiliency in 2021 proved that firms and their portfolio companies are still in need of talent to make deals, develop M&A strategy and targets, and sell companies. Bolstering lead generation will be key to staying competitive, and sponsors are eager to capitalize on trends that can help them gain an edge.
Typically, PE firms rely on in-house corporate development at the firm level. Often a gateway to an operating partner position, these resources are usually focused on M&A activities, most frequently within active deals.
“Most portfolio companies that are acquisitive will have their own in-house development team, not necessarily to source but to work deals,” says private equity advisor, board member, and former CEO Bill Hewitt. “PE firms have very good deal flow and can typically get targets to return their calls.”
If your firm has dedicated corporate development roles at the firm level, they’ll usually be responsible for projects within FP&A, planning out the market and ways to counter competition, as well as determining ways to cut costs and improve margins. Corporate development at most firms operates under a centralized model where there is a dedicated department devoted to structuring deals across the firm’s portfolio companies.
However, this is not the only model One newer way firms are handling their acquisition efforts is by having outreach originate from the portfolio co...