Our private equity value add offering services those private equity firms that do not have an in-house team focused on value creation and the upliftment of the portfolio of businesses following a transaction. We fill the gap by driving focused strategic interventions over the life cycle of the investment.

Enhanced value creation

The role of private equity investors is becoming more focused on the enhancement of value creation through operational improvements and strategic growth initiatives, moving away from primarily structuring an excellent deal upfront. Our private equity value add offering provides investors with a clearly articulated value creation plan for the businesses within the portfolio, depending where they are in the strategy cycle.

Our clients are able to maximize the return realised from the investments in their portfolio by consistently revisiting the value creation plans for each asset held and updating this as required over the course of the investment.

How can we help your business?

Step Advisory assists private equity clients both pre- and post-transaction to ensure that each investment being considered has a robust value creation plan. Many private equity firms are excellent at identifying and evaluating potential transactions according to unique investment criteria, and then executing on those transactions. However, not all of our private equity clients have a structured and consistent approach to managing the asset over the life cycle of the investment. That’s where we step in, by:

  • Performing a strategy diagnostic. To understand where each portfolio company is in terms of its strategy cycle. The intention of this is to ensure management know where they should be focused, how they are going to win in the current market and then assessing if they are equipped to do so.
  • Depending on the outcome of the diagnostic, we are often required to perform a strategy formulation exercise. To determine the growth strategy over a three-year time horizon.
  • We then perform a trend watching exercise. To obtain insights into market trends to leverage explicit or latent company ‘assets’ and competencies to unlock value. We recommend doing this in a sprint at least twice a year.
  • We assist management with opportunity prioritisation. To drive profitable growth by investing in the most viable and appropriate opportunities at the right time.
  • Providing a framework for strategy execution. To provide focus, transparency and accountability for the top five strategic initiatives over the year, and then to measure and track the progress of the execution over the period.

Get more information on our Private Equity Value Add Team services today.