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  • Interim talent adds significant value to PE-backed firms, drxDATA research finds

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    Interim talent adds significant value to PE-backed firms, drxDATA research finds



    Private equity backed firms that use interim talent for value creation projects grow their businesses significantly faster than those that do not, according to the latest drxDATA research.


    A survey by drxDATA of all 252 exits achieved by UK private equity backed businesses in 2018/2019 found that the most successful PE-backed firms are far more likely to use interim project focused talent during the interim cycle than those that perform less well.


    While businesses achieving average exits in 2018/19 grew by 6% per annum during the investment cycle, those businesses that deployed agile resources grew by 14% per year during the investment cycle.


    However our analysis also found that use of interim talent was not widespread, with only 37% of PE-backed businesses deploying agile talent resource in their businesses throughout the PE cycle. This indicates that within private equity there is not currently a wide-spread engagement with the potential that interim talent has for value creation.


    Samuel Robberts, Head of DrxDATA, said: “The typical perception of a leadership team within a PE backed business is for a set team of individuals, committed to the whole journey. However our research suggests that taking an alternative approach to talent can leverage leadership capital and maximise value creation.”


    He added: “While the use of project-focussed talent within private equity backed businesses remains a minority pursuit, our research showed clearly that businesses which deployed interim talent during the investment cycle to exit in 2018/19 were able to achieve considerably better results that those that did not.”


    drxDATA® is Drax’s proprietary data analytics platform which is used to develop unique data sets providing insights and analysis for our clients.


    Drax contact: Samuel Robberts

    Head of drxDATA


    Tel: 0203 949 9565


  • 04/09/2019

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