CEO's in charge of leading a change process do not necessarily need to have specific industry exptertise
Jun 7, 2016 | El Norte
By Alejandra Buendía
The CEO that PE Funds look to place in a company in which they invest do not have the traditional features normally defined for a good manager.
The profile that defines a good director general for an investment fund, is having the ability to build a high-performance team, authenticity in identifying and communicating risks to the board and resilience.
This is what DHR International - the world’s sixth largest company in executive search- concluded after conducting a study focused on PE funds in the United States.
Typically someone with experience in the same industry as the company is chosen, someone who knows the business and that is also empathetic said Marco Muñoz, director of DHR International.
"These elements are not predictors of success, there are as many cases of success as of failure and therefore, are not the key elements."
“A candidate has to prove that in their career they have faced adverse situations and still have succeeded, regardless if he is coming from another industry sector," he said.
This type of leadership profile is required to make the necessary changes that will trigger the growth of the business, will add value and allow the fund to sell its stake within five to eight years.
"The fund invests with the intention to strengthen the position of the company, institutionalize some aspects," said Eduardo Meouchi, a partner at DHR International.
"One of those aspects is the choice of the leader has to be a formal process such as financial or business management aspects,” he said.
For the growing private equity industry in Mexico, DHR International has the opportunity to learn from the mistakes made in other more developed markets and thus increase the number of successful cases.