What the Best Private Equity-Backed CEOs Do Differently
Top PE-backed CEOs share distinctive behaviours that explain why they deliver outsized returns while most peers are replaced.
Summary
Allison, Godtfredsen and Hashmi note that more than half of PE-backed CEOs fail to meet expectations and are replaced during the investment period despite careful vetting. Through a two-year study with over 75 interviews of CEOs and investors, they examined 53 super-performers whose businesses averaged a 6.2x return on invested capital. They identify five behaviours that set these leaders apart in creating value under tight timeframes.
Editor's opinion
Rich qualitative research (75+ interviews, 53 super-performers), but interview-based without a clear quantified causal claim.
Key concepts
PE-backed CEOs · Super-performer behaviours · Compressed value creation