Private Equity Value Creation
UK Private Equity Manager
Client Overview
We worked with a London-based mid-cap private equity manager that follows a growth equity strategy. They wanted to identify value creation opportunities that would also enhance sustainability across their portfolio companies but needed expert support to identify strategies and implement change effectively.
Objective
The GP engaged with the Danesmead team to help identify areas where sustainability initiatives could create real value within their portfolio. The goal was to ensure that sustainability efforts were not treated as a separate function but fully aligned with the investment strategy and growth objectives.
Key Actions
Assessing Portfolio Progress
We reviewed each portfolio company to understand their starting position on key sustainability objectives, identifying those that were well-advanced, and others that were just beginning their sustainability journey.
Establishing Core Sustainability Objectives
We defined a set of sustainability priorities that would apply across all portfolio companies, while also identifying company-specific sustainability elements to address unique challenges.
Based on each company’s progress, we set realistic yet ambitious sustainability targets.
We provided tailored support, working both one-on-one with companies and at a group level. This included:
Sharing resources and best practices.
Running topic-specific teach-in sessions for management teams.
Helping draft policies and establish internal processes.
Advising on specific sustainability challenges and initiatives.
Integrating Sustainability into the Investment Strategy
We ensured that sustainability wasn’t treated in isolation but was embedded into the firm’s overall investment case. We worked closely with the deal team to connect sustainability efforts to financial and operational objectives.
Results
Stronger Engagement from Portfolio Companies: Companies felt heard, received practical support, and benefited from learning from their peers.
A More Strategic Approach to Sustainability: By aligning sustainability with investment goals, we helped the firm move beyond compliance to create real, long-term value.
Ongoing Support for a Multi-Year Programme: We continue to help the GP to track progress, support existing companies, and onboard new acquisitions into the sustainability programme.
Cost-Effective Sustainability Expertise: By working with us, the GP avoided the need to hire an in-house sustainability team, ensuring a more efficient and flexible approach to responsible investment.
Through our work, we helped the private equity manager embed sustainability into its investment strategy, ensuring that sustainability initiatives contributed directly to business growth and long-term value creation.