Private equity

Following sharp declines in portfolio company valuations, the reduced availability of debt finance and increased regulation, private equity companies face multiple challenges. There is no doubt that business models have to adapt. Those that do so most successfully will emerge as the industry’s new leaders.

Governance & risk management

As private equity firms have grown from small partnerships to global organisations, so their controls risks have grown. Private equity managers are seeking assistance in articulating how they manage their fiduciary responsibilities, and what key control objectives they deploy within their businesses.

Growth

Achieving growth has become more difficult. To grow today, private equity firms have to generate sustainable EBIT growth in portfolio companies and to manage a range of strategies suited to current conditions, such as distressed debt and emerging markets. Do you have the necessary expertise?

Human capital

With profitability under pressure, thought needs to be given to how performance can be appropriately measured and retaining the best people may entail creating a new set of benchmarks.

Market reporting

Investors are becoming more demanding and FAS 157 is increasingly being used as a lever to challenge managers, asking them to explain the basis of processes and calculations such as fair value. Can you articulate the processes and calculations you use?

Merger and acquisition

With debt finance in shorter supply, mergers and acquisitions may be difficult to achieve? What is your strategy for acquiring assets at depressed prices? How will you finance your acquisitions?

Regulation and compliance

Private equity is facing increased regulation. Do you know what you need to do to comply with regulation in different parts of the world?