A leading mid-market private equity firm
Portfolio EBITDA growth
Improvement opportunities identified
Revised net IRR projection
Challenge
The flagship fund was underperforming its target IRR, with three of eight portfolio companies experiencing margin compression and limited operational levers in place.
Approach
We conducted rapid diagnostic assessments across all eight portfolio companies, identifying $340 million in EBITDA improvement opportunities. For the three underperforming assets, we deployed dedicated operating teams focused on procurement optimization, SG&A rationalization, and revenue management. We also built a portfolio-wide performance management system with standardized KPIs.
Impact
Within 18 months, aggregate portfolio EBITDA increased by 28%. The three turnaround companies returned to above-target performance, and the fund's projected net IRR improved from 14% to 22%.