SD-04.8 — Portfolio-Company Stewardship & Value Creation
Business Domain: BD-04 Direct & Co-Investment (Front office) · Applies: PRIV
Purpose
Drives operational value creation in a held portfolio company through the ownership period. Where SD-04.1 to SD-04.6 acquire the company, this Service Domain owns what happens next: active ownership — governing the company, improving it, and executing the value-creation plan the investment thesis promised. It is the company-mode post-close discipline, one of three in BD-04; managing a held real asset is SD-04.10, monitoring a held loan is SD-04.12.
Service Operations
- Run the 100-day plan — the quick wins and the early value-creation roadmap, executed from completion.
- Govern the value-creation plan — author and steer the operational, commercial and buy-and-build initiatives the investment thesis rests on.
- Deploy operating partners — assign the operating expertise that drives performance improvement in the company.
- Establish board representation — appoint the portfolio-company board, set the governance cadence, and exercise active ownership.
- Drive add-on M&A — identify and execute the bolt-on acquisitions of a buy-and-build strategy.
- Monitor portfolio-company performance — track the company against the value-creation plan and the underwriting case, and report it.
Inputs and outputs
- Inputs: the closed company (SD-04.6); the investment thesis and value-creation plan (SD-04.5); the company’s management team.
- Outputs: the 100-day plan, the governed value-creation plan, the board appointments and the performance reports — feeding SD-04.9 Exit & Realisation Management when the company is ready to be sold, and BD-09 Performance & Analytics.
Entities
- Consumes: Legal Entity (E-01) — the portfolio company; the private-markets Portfolio Company entity where the holding is modelled there; the SD-04.5 investment thesis and value-creation plan; the SD-04.6 closed company.
- Owns: none — the value-creation plan and 100-day plan are analytical artefacts.
Standards
- No external standard governs value creation. The 100-day plan, the operating-partner model and the value-creation-plan discipline are practitioner conventions; portfolio-company board governance follows the private-equity governance norms.
Open extensions
- The boundary with SD-12.12 Proxy Voting & Stewardship Operations — SD-04.8 is active ownership of a controlled holding; SD-12.12 is minority-shareholder stewardship of a public-equity position.
- Whether a value-creation-plan artefact warrants entity treatment.