As the first generation of middle-market private equity leaders nears retirement, many firms are struggling with how to move forward with succession planning, even when faced with increasing pressure from their limited partners.
Based on a survey of a 140 UK based respondents across Audit Committee Chairs, Board Chairs, CFOs and Audit Partners in the UK. The survey was supplemented with 21 interviews with UK Board Chairs, Audit Committee Chairs, CFOs and Audit Partners aimed at determining what characteristics are needed to lead this key Committee, what the job entails now, and crucially how an Audit Committee Chair can succeed.
As private equity firms look to maximize value from their investments, it is critical to ensure that portfolio company management teams have the right capabilities to execute against their investment theses. Though in many cases the underlying premise will lie in backing an existing management team, it is increasingly common for private equity firms to bring in a new CFO early in the lifespan of an investment.