Corporate Development (M&A) opportunities within investor backed portfolio companies continue to grow as funds opt for buy-and-build strategies to drive growth. These roles provide an exciting combination of strategic, transactional and operational work within a fast-paced environment enjoying a sector-specific focus.
Best of both worlds

The increasing drive for growth and value generation within portfolio companies has led to a more proactive M&A approach and greater cooperation between funds and their portfolio companies. This requires oversight from someone who is close to both the fund and the portfolio company, with the ability to guide the acquisition and integration of new companies. This space creates ample opportunities for the analytically minded who have a flair for strategic growth.
An interesting alternative to traditional investment roles, these M&A positions within portfolio companies suit financiers who enjoy the fast-pace deal flow of private equity but who are keen to be closer to the coal face and involved in day-to-day strategic and operational decisions.

Growing opportunities

In Germany and Switzerland we see the private equity-backed buy-and-build platforms attract top bankers and strategy consultants due to the strategic, operational mix they offer. First-hand operation insight combined with the dynamism of a private equity deal focus.

In the last 12 months we’ve seen a growing number of people entering this space. A large number of platforms have been based in the healthcare services area but also in industrial and general business services. The services sector, in general, lends itself well to buy-and-build consolidation, where economies of scale can be gained through streamlining business processes.

What's the route in?

People enter these roles from investment banking M&A, private equity and corporate M&A backgrounds. For those moving from funds, it’s the perfect opportunity to deepen their work in a sector that really interests them. Career stage is no barrier to entry; we’ve placed people into junior, mid-level and senior roles, including some very experienced investors.

Long-term prospects and compensation

It’s common for people in these positions to stay with the portfolio company post-divestment, taking a step up towards a bigger platform and staying operational, but with the experience you gain taking a similar role in another portfolio is also an option. Furthermore, this route could lead to an investing role within a private equity fund following a similar strategy.

The compensation structure will offer a good base and bonus, often with an added incentive scheme that reflects the growth of the business. Such exit-driven incentive schemes may even pay out earlier than carry schemes within private equity. 

If you wish to learn more about such opportunities across the DACH region please reach out to Rebecca Liebel, Head of our Munich office.

Rebecca Liebel
Head of Munich