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The Portfolio Management Program (PMP) for Baird Private Equity is a dedicated program designed to use the size and resources of the portfolio to drive operational value in our portfolio companies. PMP supports Baird Private Equity’s investment teams, operational resources and portfolio company management in the development and implementation of value creation plans and best practices across our combined portfolio. As we evaluate investment opportunities and support our management teams in the development and execution of value creation plans, we apply the knowledge we have gained through investing in over 220 companies over the last twenty years.
Path to Value
Prior to investing in a company and immediately post-investment our team of professionals work with company management to develop and implement a value creation plan that will allow us to meet or exceed our investment objectives. We work hand-in-hand with management and the company’s board of directors to identify the highest impact priorities and develop a strategic operating plan to achieve these objectives. In the early days of an investment, PMP focuses on establishing a shared view of the company’s priorities and critical business metrics. We implement the following items:
- 100-day plans
- 3- to 5-year strategic blueprint
- Shared spend programs
- Business and financial tracking tools
Sharing Best Practices
With our global footprint, smaller-company focus and sector orientation, we see the world a bit differently than our private equity peers. Baird Private Equity has invested in more than 220 companies, and we have seen what works and what doesn’t work, and we actively share these best practices with our portfolio companies. Our PMP team has developed best practices for global supply chain management, financial reporting, corporate governance, talent management, global sales and marketing, risk management and low cost country offshoring.
Smaller Companies Going Global
Managing a global supply chain and supporting a global customer base can be a daunting proposition for smaller companies. We make this possible through PMP, working closely with our Baird Asia resources and portfolio company management to identify and execute on opportunities created by globalization.
Purchasing Power
PMP uses the consolidated purchasing power of the portfolio to achieve cost savings and enhance service for our companies. Group purchasing and strategic sourcing often represent an important but unappreciated opportunity for smaller companies. We leverage the power of the portfolio to develop competitive and portable agreements with leading suppliers and service providers. We have implemented shared programs in the following areas:
- Accounting, audit and tax services
- Risk management and insurance
- Transportation and logistics
- Talent management
- IT and telecommunications
- Indirect materials and services
Portfolio Monitoring and Analysis
We use a disciplined portfolio review process to proactively review our companies. The PMP team works with company management and the investment partners to track, evaluate and respond to the needs of our portfolio companies. PMP provides the investment team insight into portfolio diversification, sourcing metrics and strategies, debt market trends, movements in contract terms, and the impact of Asian strategies on the portfolio. These efforts are a critical success factor in designing a portfolio for our investors. |
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