The managing partners at this private equity firm were at loggerheads on developing both the team and the investment strategy going forward. Having had some spectacular early success in their portfolio they were suddenly confronted with high demand for their new fund and a variety of options to consider in growing the franchise.  

One protagonist wanted to stick to the initial business plan; build a small senior bench of partners, focus on the technology sector and make concentrated bets. The other saw an opportunity to grow AUM, build a team of researchers and analysts and diversify their portfolio more broadly. 

Over a number of months this conversation became an all-consuming & increasingly existential debate. Tempers frayed and emotions were vented in strategy meetings and at the water cooler. Junior, support staff and new joiners could sense the tension but felt powerless to intervene. 

The systemic cost was significant; origination, diligence & underwriting suffered given the divergent views at Investment Committee, portfolio company issues were neglected and performance suffered. 

A team coaching intervention was requested by the firm’s external stakeholders to enable the two partners to discuss their differences in a constructive forum and find a degree of alignment in how best to move the business forward in all stakeholders’ best interests.  

As a result, one of the partners became the defacto CEO of the company. Fast forward two years and the other partner is now leveraging the firm’s brand and their expertise to raise a separate pool of capital focussed on their own preferred strategy.