Confronting a drab outlook

Like some of our more agile clients, the Pilots have fully resurfaced, refreshed and re-energized to confront the challenges of what could be another drab and uninspiring year within the private equity and turnaround marketplaces.  Actually, again like some of our more agile clients, we approach 2012 not focused on what is wrong with the market and who is not doing deals, but instead busily supporting those firms (increasingly those with non-UK assets) who are still finding and closing deals, remaining pro-active in changing stagnant management and finding creative ways to get deals off the ground without the lazy reliance upon multiples and multiples of debt.

Within the pool of executives who inhabit the interim and turnaround / restructuring universe, it comes as no surprise that more and more people are scrambling for work.  But this isn’t true of every group within the pool.  Those executives who are ‘true’ turnaround and change management professionals at the top of their games have never been busier and can be very selective in what they work on.  After being through too many recessions now, we (and I imagine savvy firms) are particularly good at ferreting out CVs and executives who have re-written their CVs to appear more turnaround / restructuring experienced then they really are.  Having survived a turnaround is clearly not the same as having driven a successful turnaround.

For those of you who have worked with me (the last 6 years) or James (since the Iron Age), you will know that we have widened the focus of our business from being almost purely interim FD driven to the core constituents of boards (CROs, Chairmen, CEOs, and NEDs).  This reflects a significant shift in what our client base wants (and demands), and has provided us with a unique viewpoint of the markets in which we all inhabit.  Private equity is now clearly more willing to replace chairmen and NEDs who may have lost their way and to fire up with new blood to kick start a slumbering business and drive it hard to exit.  Also investors are even more successful in tapping these senior people for off-market deal flow and quick tyre kicking or complex and unusual commercial due diligence.

PILOTpartners is again grateful to the contributors to this edition of Pilot's Log:

Headlining this issue is an insightful feature on turnaround and restructuring by our editor, Katherine Steiner-Dicks. With the help of industry leaders Jamie Constable of RCapital, Charles Bodie of Kelso Place Asset Management, and Pierre Costes of French turnaround private equity investor, Butler Capital, Katherine analyzes the marketplace that was 2011, what drove / drives bank behavior, and updates trends amongst LP investors.

One of PILOTpartners' best friends, Steve Macro, an energetic turnaround professional, details how his recent work with Primary Care Trusts and other healthcare service providers in the public space has modified his thoughts on how private equity can most successfully learn lessons from the public sector, understand changing NHS policies and confidently invest in atypical spaces within healthcare.

Nic Vine, a very experienced and successful change management professional, continues his well received contribution to Pilot's Log by explaining the need for 'Change Strategy' and the options for resourcing the creation and management of such a strategy on the heels of his 17 years of providing interim management services.

For this issue, instead of including our usual PILOTcases, James Wheeler spent the Christmas / New Year break auditing his wine collection and, more importantly for us, analyzing our last year's (and 3 years') activities, identifying the shifts in sector needs from clients, the continuing move towards more international assignments and then he lays out each of our expectations within our individual areas of expertise.

 

Finally a very happy and prosperous new year to all readers of Pilot's Log, our clients and independent executives. Let's work together to make 2012 a big success and kick the gloom merchants into touch…

 

Michael Gebauer Partner – private equity practice E. m.gebauer@pilotpartners.eu T. +44 (0)783 423 5458