Leveraging Expert Networks for Portfolio Advancement

Igniting Portfolio Company Growth: The Power of Expert Connections

Private equity portfolio management demands clear market insights. Seeking to advance their hotel renovation portfolio, Private Equity firm, LongWater Opportunities, struggled to gain a clear understanding of the rapidly evolving market. They dedicated significant time over three years searching for reliable insights, but found it challenging to piece together a complete picture. They engaged Apex Leaders in order to understand the key drivers and challenges shaping the market. By connecting with industry experts, LongWater gained the knowledge necessary to close those knowledge gaps and pinpoint value creation opportunities over the holding period.

Private Equity Due Diligence Consulting: The Apex Approach to PE Portfolio Management

Apex Leaders took a strategic, multi-faceted approach to address LongWater’s need for clarity in the hotel renovation market. We understood that generalized information wasn’t sufficient; they required targeted insights from individuals with deep, practical experience. Our approach focused on three key pillars:

• Targeted Identification: We leveraged our extensive network and industry knowledge to identify and vet leading private equity experts with specific expertise in areas crucial to LongWater’s objectives. This included individuals with experience in renovation demand forecasting, franchise agreement dynamics, design and vendor management, and the impact of economic factors on the hospitality sector.
  
• Facilitated Access: We didn’t just provide a list of names. We facilitated direct access to these experts through in-depth consultations and interviews. This allowed LongWater to engage in meaningful conversations, ask targeted questions, and explore the nuances of the market in detail.
  
• Ongoing Engagement: Recognizing the value of sustained relationships, we facilitated opportunities for ongoing engagement with River Guides. This fostered the development of long-term partnerships, ensuring that LongWater had access to continuous strategic counsel and support as their needs evolved. This included opportunities for ongoing guidance and mentorship.
  

By focusing on these core elements, Apex Leaders provided LongWater with the strategic advantage they needed to navigate the complexities of the hotel renovation market. These conversations provided critical insights into the complex hotel renovation market and answered LongWater’s pressing questions.

Engaged Private Equity Advisors

Former Director | The Getty’s Group

• Provided insights on renovation demand: Offering expertise on pre- and post-pandemic trends, helping the client understand the current market and how to anticipate future needs.
• Advised on art and decor: Shared knowledge about incorporating artwork and other decorative elements into renovation projects, addressing aesthetic and budgetary and vendor considerations.

A CIO and Principal in hospitality technology and operations for an award-winning global hospitality design and development firm

• Explained hotel renovation cycles: Provided an understanding of typical renovation timelines and how they relate to franchise agreements
• Analyzed the impact of the pandemic: Explained how the pandemic disrupted renovation cycles and allowed franchises to prioritize debt reduction, leading to current market pressures.
• Highlighted cost pressures: Outlined the challenges of rising costs for products, capital, and labor.
• Served as a “River Guide”: The client entered a longer-term relationship with this advisor. He provided a broader, strategic perspective on navigating the complexities of the renovation landscape, drawing on his experience as CIO.

A Design Director in current hotel renovation trends and design for a prominent design and architecture firm

• Shared firsthand experience with current renovations: Provided practical insights based on her active involvement in ongoing projects, offering relevant and up-to-date information.
• Discussed demand shifts: Analyzed how demand for renovations has evolved pre- and post-COVID, helping the client understand changing priorities and preferences.
• Addressed vendor specifications: Explained the complexities of constantly evolving vendor specifications and how they impact product selection.
• Clarified decision-making roles: Provided clarity on who is responsible for making key decisions regarding product choices and other aspects of the renovation process.