Help Wanted — Private Equity Needs Finance Expertise for their Portcos…
Help Wanted! Financial expertise at PE-backed portcos. Half of portfolio company CFOs and Board Members say that it will be a challenge to meet their private equity sponsor’s goals without key finance expertise (which they are struggling to find).
Per The Wall Street Journal: “Nearly half of private-equity fund managers and portfolio-company finance chiefs say private-equity-owned businesses are understaffed, including key finance positions. Company executives and private-equity managers also said that portfolio companies increasingly struggle to find people with the skills needed to navigate today’s high interest rates and declining investment exit opportunities.”
This is a staggering challenge given the enormous amount of capital invested in today’s economy by the private equity industry. If half of these firms cannot locate the financial expertise they need, then performance could suffer industry-wide.
If you are a private equity sponsor — take a minute to read this Wall Street Journal article. This may be information that you are not getting from your portco.
At E78 Partners, we would agree that there is currently a sizable gap between the finance and accounting expertise needed by private equity backed companies and the talent that is currently available. This challenge is particularly acute for middle- and lower middle-market companies.
© Copyright June 2023. Marc Patterson. All Rights Reserved.