Active portfolio management

Our vision is to be the most sought-after private equity manager in Europe, being the partner of choice for best management teams in our sectors, helping them succeed and to scale their businesses into industry champions.

By virtue of the fact that HgCapital repeatedly invests in specific kinds of business models, our dedicated Operational Innovations (‘OI’) Team has been able to tailor a differentiated approach to driving value creation during ownership. Following each investment, our OI Team works with management on improving a focused set of operational levers that are key to performance in an HgCapital ‘sweet spot’ business model: sales, digital marketing, pricing, customer success, IT and analytics. For each of these levers, the OI team has codified the HgCapital experience and best-practices into set ‘plays’ that are deployed together with management.

The nature of support provided by HgCapital can take a variety of forms. At a Board level, we often appoint a member of the OI team as a non‑executive director responsible for applying active, results‑oriented corporate governance. Beyond the boardroom, members of our OI team provide either direct support through hands‑on best-practice project work, or collaborate with management teams to draw on expertise from our proprietary network of specialists and Operating Partners, who each bring a specific, operational specialism to company situations.

We also foster peer‑to‑peer best-practice sharing between our portfolio executives. For example, we hold annual ‘best-practice’ forums for each function individually, where we bring together each portfolio company’s functional lead together with our topic experts. Last year we held twelve forums with close to 300 executives attending across sales & marketing, customer success, finance, HR and other areas. Outside of the forums, the OI team act as the node, driving ad‑hoc collaboration and knowledge‑sharing between groups of portfolio executives.

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