Human Capital In PE: The Diagnosis is the Treatment

Talent Risks that Undermine Growth, Investment Timelines and Returns

Private equity firms and their portcos are quickly finding that human capital has become the lynchpin upon which value creation either succeeds or fails. At a recent CEO Summit hosted by Tecum Capital, Shannon Gabriel, TBM’s Vice President of Leadership Solutions was invited to discuss her change-readiness framework through which GPs and portco leaders can better understand the root cause of human capital issues that impact productivity and create a plan to resolve them.

This article, with commentary from Tecum Capital leaders, highlights her change-readiness approach and explores these critical areas that can often make or break the most ambitious growth initiatives:

• Leadership capabilities & risks 
• Organizational health & talent management 
• Technical capabilities
• Corporate culture 

It’s a new era, and investors working under finite timelines need to have a strategy in place at the earliest stages of an investment to assess and manage human capital – today, the risk is too high to overlook the talent factor.

If a company’s recruiting strategy is to post advertisements, they’re already behind the curve. If they’re not investing in their employees, educating and upskilling the best candidates and then offering a path for advancement, the revolving door will only spin faster. And if business leaders are unwilling to let go of certain standards that don’t reflect on-the-job demands, they’re almost certainly overlooking attractive pools of qualified candidates.

Complete the form to download your copy of “Human Capital In PE: The Diagnosis is the Treatment” to identify the talent risks that can undermine growth initiatives, investment timelines and, ultimately, returns.

Thank you to Sean Edmonson, David Bonvenuto and Matt Harnett of Tecum Capital for contributing to this article.