The financial crisis and historic underperformance has caused investment in European Venture Capital ("VC") funds to dry up. With the availability of debt severely restricted and returns under pressure, Private Equity funds are struggling to perform. Less investment means that it is even more important for investors to select the right individuals and put the right teams together for the job during the due diligence process. In fact, the strength of management teams in Private Equity companies themselves is one of the top key criteria that senior executives take into account when joining such firms.
At Crelos, we have a thorough understanding of the Private Equity and Venture Capital (PE&VC) sector and have designed a dedicated set of services to respond to its specific challenges. In a sector where the quality of the management team makes all the difference, we know that getting the leader and the management team right reduces the risk and the requirement for the fund manager or banker to get involved.
Our approach is based on proven scientific research on human behaviour and on practical experience. It is also independent and unique. We draw from our experience of assessing and developing high performers and sitting on boards as executives and non-executives. Our success is the result of combining interventions at organisation, team and individual levels, as well as our second to none programme management.
Our clients are leading organisations in their respective sectors. They share a common approach in that they have chosen to make people a differentiator of their businesses.
Crelos partners with businesses to help them turn their investments into high performance businesses.
We provide an in depth understanding of what their business plans mean for their people, and how to make sure that their people resource is up to the challenge.
We highlight any human risks factors and advise on how to mitigate them.
We help investors to understand how the members of the management team will behave in a wide range of different future situations, thereby helping to significantly enhance the management control of the business and to underpin the investors' decision making
Peter Taylor, HSBC
'80% of the 1,000 plus VC-backed firms in the UK are still loss making, and 25% have no revenues. The financial crisis and historic under performance have caused investment in UK VC funds to dry up and the chief contributor to poor performance is, to one degree or another, the failure of the management teams of portfolio businesses.'