Challenges of Portfolio Management

Private equity firms are facing a significant increase in the number of portfolio companies, with the average general partner now managing twice as many as a decade ago. This surge places a strain on resources, as each company requires ongoing management, oversight, and potentially new capital or expertise. The industry must adapt to this additional burden by ensuring adequate capabilities at various levels, from the board to the C-suite, to create value and achieve successful exits. As portfolios continue to grow, there is a pressing need for general partners to maintain focus on value creation activities while managing their expanded commitments.