Gary McGaghey Strategies to How Chief Financial officer Thrive in the Private Equity Space
The capital markets and private equity environment have experienced rapid and significant evolution over the last years. In recent years, more investors and funds have entered the fray to secure more diverse offerings. CFOs need to leverage the following Gary McGaghey strategies to thrive in this space.
Be Proactive
Proactive Chief Finance is those who are proactive in their approach to attracting and establishing partnerships with investors. They understand the importance of proactively securing partnerships and obtaining investment opportunities early.
Be Outward-Looking
Once CFOs have secured a few key partnerships, they must then become outward-looking in their approach. They must be very intentional in their process of expanding their presence and have in mind the core metrics by which they will measure success. This can help CFOs see opportunities for collaboration and growth in areas outside of their core competencies.
Stay Educated and Relevant
Chief Financial officers must stay educated and relevant to the latest market trends to maintain their competitive advantage in the private equity space. CFOs can share their knowledge of industry trends and best practices with their portfolio companies.
Maintain Connectivity and Collaboration
Finally, CFOs must maintain a healthy level of connectivity and collaboration with their partners and investors. This can help them identify new and innovative ways to bridge the gap between the corporate and investment sides. It can also help the Chief Financial officer identify new opportunities for collaboration with their partners.
Conclusion
Private equity investments are attractive for companies due to the appealing return-on-investment (ROI), but the process of identifying, qualifying, and raising private equity investments can be challenging. All too often, the process of fundraising can be a single-minded focus on short-term financial metrics while sacrificing a company’s long-term growth and value. More details are available Gary McGaghey’s facebook post.