Introduction: Leveraging Human Capital Diligence in Private Equity
In the high-velocity world of private equity, the transformation of portfolio companies demands more than just financial engineering and operational improvements. It requires leaders who can rapidly adapt, execute complex change initiatives, and maintain personal equilibrium amidst intense pressure. Yet many portfolio company executives find themselves navigating unfamiliar territory when backed by PE firms—facing compressed timelines, new stakeholders, and heightened performance expectations.
Executive coaching has emerged as a powerful catalyst in this context, helping leaders accelerate their development precisely when the stakes are highest. As PE firms seek to maximize returns during typical 3-5 year hold periods, investing in leadership effectiveness through targeted coaching delivers outsized and timely impact on value creation initiatives.
This article—the first in our four-part series—examines executive coaching as a core component of HR integration that creates value in the PE context through three critical dimensions: Speed Amplification, Change Management Mastery, and Loneliness at the Top. Each dimension addresses a specific challenge that portfolio company leaders face and demonstrates how coaching provides the structured support needed to overcome these hurdles.
Speed Amplification: Thriving in Accelerated Environments
The pace of change in PE-backed companies creates unprecedented pressure for leaders to deliver results quickly. What might have once been a long-term vision may suddenly be an 18-24 month transformation plan, requiring rapid decision-making capabilities that many executives haven't previously developed. Executive coaching helps leaders adapt to this accelerated environment by developing mental agility, creating structured frameworks for prioritization, and building the resilience needed to recover quickly from inevitable setbacks—transforming the PE timeline from a source of stress to a catalyst for focused execution.
Change Management Mastery: Navigating Complex Transitions
PE investments trigger profound organizational changes that leaders must not only adapt to personally but also guide their organizations through while maintaining performance. New governance structures, reporting requirements, and strategic priorities create a complex stakeholder landscape that even seasoned executives find challenging to navigate. Through coaching, leaders develop sophisticated approaches to managing both up and down—articulating compelling visions that align with investor expectations while building employee buy-in during periods of uncertainty and transition.
Loneliness at the Top: Finding Support When It's Most Needed
Portfolio company leaders often find themselves caught between demanding investors, anxious employees, and their own performance pressures, with nowhere to process challenges or receive objective feedback. This isolation can impair decision-making and accelerate burnout precisely when clear thinking is most critical. Executive coaching provides a confidential thinking environment where leaders can express uncertainties, develop emotional intelligence, and gain perspective without judgment—creating a psychological safety zone that ultimately enhances their effectiveness with both PE partners and internal teams.
Turning Diligence into Value Creation
What makes executive coaching particularly valuable in the PE context is its direct connection to value creation. By addressing these three dimensions simultaneously, coaching enables leaders to execute value creation plans more effectively, navigate unexpected challenges with greater agility, and maintain the personal resilience needed for sustained high performance.
Forward-thinking PE firms are increasingly investing in coaching following human capital due diligence, right at the outset of their investments as a proactive accelerator of leadership effectiveness. This preventative approach ensures leaders are equipped to drive transformation from day one, significantly reducing the risk of performance issues that typically necessitate "emergency coaching" later in the investment cycle. It also leverages recently completed leadership assessments, culture assessments and other insights from human capital due diligence to enhance the likelihood of success.
Early coaching investment creates a multiplier effect, where each month of enhanced leadership effectiveness compounds throughout the hold period, ultimately leading to stronger returns and smoother exits.
Unlike traditional leadership development approaches that may take years to yield results, executive coaching can produce meaningful behavioral changes and performance improvements within months—aligning perfectly with the compressed timelines of PE investments. This accelerated development becomes particularly critical during the early stages of an investment when setting the right trajectory can dramatically impact ultimate returns.
In our upcoming articles, we'll explore each dimension in greater depth, providing specific frameworks, case studies, and implementation strategies for leveraging executive coaching to drive value creation in PE portfolio companies.
Ready to Add Executive Coaching to Your HR Due Diligence Checklist?
If you're interested in exploring how executive coaching could support value creation in your portfolio companies, we invite you to contact us for a complimentary consultation. Together, 29Bison and Matria offer a unique combination of PE-specific human capital expertise and executive coaching capabilities designed to accelerate leadership effectiveness during critical HR integration & transformation periods.
About the Authors
Michelle Casazza is the Founder and Head Coach at Matria, an executive coaching firm specializing in accelerating leadership transformation. Michelle is a former startup executive having led a startup from Series-B to IPO, is a CPA and avid sailor. Contact Michelle at michelle@joinmatria.com
Brendan McElroy and Camille Hays are Partners at 29Bison, a specialized human capital consulting firm that helps private equity firms and their portfolio companies optimize leadership effectiveness, culture, and organizational performance to drive value creation.
Why 29Bison?
Choosing the right partner for HR due diligence and integration is critical to the success of any transaction, and 29Bison offers unmatched expertise and support in navigating these complexities. With a people-first approach, we go beyond traditional due diligence to address not only workforce-related risks but also opportunities that drive long-term value creation. Our comprehensive HR due diligence services uncover hidden risks, optimize workforce strategies, and identify synergies that align with your strategic objectives. Post-transaction, we provide tailored HR integration solutions designed to foster a seamless transition, retain key talent, and build a cohesive organizational culture that supports sustainable growth. And finally, 29Bison’s Fractional HR Operating Partner service provides private equity firms with strategic, high-impact HR leadership, driving value creation, talent optimization, and seamless workforce integration across portfolio companies,
At 29Bison, we’re more than human capital consultants—we’re partners invested in helping you achieve your vision by maximizing the potential of your most valuable asset: your people. Let us help you turn challenges into opportunities and create a solid foundation for success. Reach out today to learn how we can support your HR diligence and integration needs.