Why commercial excellence is critical to private equity value creation

An interview with Dave Clement of Simon-Kucher about a study of 215 private equity professionals, conducted in partnership with PEI Private Equity, on commercial excellence as a source of portfolio value creation. Clement discusses what separates high-performing firms from peers, why commercial excellence should be embedded earlier in the investment lifecycle, and how operating partners can work more closely with deal teams. Pricing, sales effectiveness and go-to-market execution are presented as growing parts of private equity value creation.

1. The discussion is based on a study of 215 private equity professionals run with PEI Private Equity.
2. Traditional drivers of private equity returns are described as facing increasing pressure, raising the importance of commercial excellence.
3. Clement argues commercial excellence needs to be embedded earlier in the investment lifecycle.
4. The interview covers operating partner and deal team collaboration, along with pricing, sales and go-to-market execution.