Private Equity / Portfolio Operations

Paris Private Equity Firm

Mid-market PE firm (€500M AUM) improved portfolio company coordination by 58% and decision velocity by 4x, unlocking $349K annual value while improving portfolio company autonomy and oversight simultaneously.

58%

Reduction

$349K

Annual Savings

10 weeks

Implementation

Organization Profile

A Paris-based mid-market private equity firm managing €500M+ in assets across 6-8 active portfolio companies. With 35 professionals, the firm was struggling with operational coordination across its portfolio, resulting in slow value creation and suboptimal returns.

The central issue: portfolio companies felt micromanaged but approval-dependent. The PE firm felt responsible but lacked visibility. Everyone was spending time on coordination instead of value creation.

The Hidden Coordination Tax

Where Coordination Overhead Was Hidden

Portfolio Steering Calls: 20 hours/week in board meetings and portfolio company sync calls
Financial Reporting: 15 hours/week on consolidation and reporting (manual processes)
PE Alignment: 12 hours/week on investment committee and internal decision-making
Portfolio Issues: 10 hours/week troubleshooting operational problems (decisions pending)
Cross-Portfolio Coordination: 8 hours/week managing resource sharing and synergies
Impact: Portfolio companies couldn't move fast on improvements (waiting for PE approval)

The Real Cost

At $180/hour PE-level rates, 65 hours/week of coordination = $11,700/week = $608,400 annually.

But the real cost was value creation impact: portfolio companies unable to execute improvements quickly, longer hold periods, lower IRRs, and exit metrics not as clean as they should be.

Engagement Phases

Phase 1

Diagnosis (Weeks 1-2)

Mapped all decision flows, analyzed meeting load, identified approval bottlenecks, and found hidden coordination breaking value creation.

Phase 2

Foundation (Weeks 3-6)

Redesigned decision authorities, implemented real-time dashboard, eliminated status meetings, created decision thresholds.

Phase 3

Infrastructure (Weeks 7-10)

Built operational excellence framework, established peer learning, automated consolidation, trained investment team.

Phase 4

Evolution (12 weeks advisory)

Coaching on new model, monitoring for drift, refined thresholds, built sustainable capability.

Key Outcomes

Quantifiable Results

58% reduction in coordination: From 65 to 27 hours/week
$349,152 annual savings: 38 hours/week freed at PE-level rates
4x faster decision velocity: Portfolio company decisions in 24 hours vs. 5-7 days
38 hours/week invested in value creation instead of coordination
Portfolio companies executing improvements 3-4x faster

Business Outcomes

Portfolio companies now autonomous but accountable (clear thresholds)
Better portfolio company leadership attracted (autonomy + PE support)
Cross-portfolio synergies identified and realized
Faster exit preparation (clean operations, strong metrics)
Follow-on fundraising improved (demonstrate operational rigor)
Investment returns accelerated (faster value creation = higher IRRs)
One deal closed 18 months early due to operational improvements

Client Perspective

"We worried autonomy meant loss of control. Turns out the opposite. By setting clear thresholds and building visibility, we had better oversight and faster value creation. Our portfolio companies felt trusted, not micromanaged. And we actually closed one deal 18 months earlier than planned because operational metrics were so clean."

— Managing Partner

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