Private Equity Management Consulting for Portco Insights

3 Min Read

Navigating portfolio company challenges

There are challenging steps and uncomfortable conversations private equity portfolio managers and their executive teams must have when making decisions to advance. Under these circumstances, smart PE firms are turning to private equity management consulting services to gain private equity expert guidance while maintaining discretion.

Is our portfolio company on the best track? Should we acquire this add-on? Is this “industry norm” valid?

To answer the difficult questions, PE firms come to Apex Leaders wanting unbiased information regarding their investments. Whether it be an evaluation of their current portfolio companies or an exploration into a new market, Apex helps focus the lens. We provide a highly discrete and customized approach to address tough questions so PE can pulse faster in making informed decisions for their portcos.

Discrete industry fact-finding

A private equity client, seeking to understand the root cause of declining sales for their portfolio company (a saw manufacturer) the Pacific Northwest, needed to dive deep without revealing their involvement within the broader industry. Their management team attributed the poor performance to dwindling mill production and possible regulation impacts between the U.S. and Canada, but the client questioned this explanation, observing a robust housing market. The PE firm wanted an outside perspective on the situation—were low sales around the industry in line with the management team’s claims, or had other factors influenced the dip in sales?

The PE client needed to determine if these factors were truly industry-wide or if internal issues were contributing to the decline. 

A different approach to validation

As part of our private equity management consulting process, we thoughtfully crafted a series of questions to ensure we approached the project with a clear purpose. The portfolio manager specifically wanted answers to four questions, so we formulated a plan to help them find the insight they needed.

Apex conducted 36 interviews with sawmill personnel, industry associations, and regulatory experts to provide our client with a comprehensive market assessment. Interviews included saw file managers, procurement decision-makers, and experts on the U.S.-Canada Softwood Lumber Agreement, ensuring a multi-faceted and objective analysis.

Industry claims—not always what they seem

In the end, we learned the management team’s claims about the decrease in sales were unsubstantiated. Around 80% of respondents reported they maintained or even increased output within the past 12 months. About 20% of respondents said that shifts had been reduced but the mills’ output remained unchanged due to better technology, equipment and lean management principles. All regulatory professionals noted no significant impact to their mills because of shifts in public policy. With our help, the portfolio manager was able to remain anonymous and make an informed decision about the company’s future.

Make decisions based on unbiased information

At some point, most PE firms will likely need the help of a service provider that can operate independently of the firm. When your firm needs a layer of privacy or unbiased insight while evaluating a deal or current portfolio company, Apex Leaders’ due diligence services and private equity portfolio management expertise can accelerate the pace at which you acquire the answers you need. We’ll help safeguard your firm’s reputation and provide you with insights at a level of depth that goes well beyond what you could gather yourself or through the use of an expert network.

Get to “Yes” or “No” Quicker

Today’s investing environment is more competitive than ever. To stand out as a preferred buyer and deploy capital swiftly, private equity firms must engage with the right experts at the right time—whether that’s a C-suite executive with firsthand experience, an end-user, or an industry insider. 

This is where Apex Leaders’ strategic approach, combined with our private equity due diligence expertise, provides the insights you need to make informed, confident investment decisions. 

Contact us today to learn more about our services and how they can help your firm.