LPs now need more to select PE managers that have what it takes to achieve repeatable performance.

Usual criteria (past performance, DDQ, interviews, case studies, 
slick brand or skin in the game) are not enough.

Rising interest rates have made leverage more expensive, valuations are high, and many portfolio companies have already been through one or more LBOs.

Therefore, operational value creation has become critical. 

And when it comes to value creation too, investors (LPs) deserve transparency.

In terms of value creation methodologies, resources, know-how, tools, expertise or even ways of engaging management, differences between PE firms and teams are real.

Which PE managers have built sufficient capabilities to secure performance going forward?
Which ones are truly 'best-in-class' in terms of value creation capabilities? 
Which ones have been working on it?

Investors need more transparency to tell the difference.

GP-Score teams analyze and compare PE managers' value creation capabilities. Because it's not only about their track record but about actual capabilities. 

We verify the strength of these capabilities and certify value-creation-proficient PE funds teams. For those who require it, GP-Score provides in-depth assessment, report and scoring of their capabilities.

As a result, PE firms can prove their value creation excellence to investors and strengthen their confidence.

GP-Score's team reviews actual value creation cases at sample portfolio companies. We collect facts, data and working material. We also interview PE teams (and, in the case of assessment / scoring, portfolio companies' managers).

The Rating Committee reviews certifications and assessments and validates conclusions.

The Methodology Committee helps adjust the frameworks based on latest best practices.

We developed 2 kinds of frameworks :

CERTIFICATION FRAMEWORKS

They are based on 5 certification criteria: 
- Adequate resources & methodologies (30%)
- Empirical, data-based evidence of past value creation (30%)
- Fit-for-purpose value creation approach (20%)
- Impactful engagement with portfolio leadership (15%)
- Development of internal value creation expertise (5%)

Beyond the 'full value creation' certification, 3 other certifications are available, each with a specific focus:
Revenue Growth   -   Operations Efficiency   -   Management of Acquisitions

Certifications are performed at PE firms' offices and take up 3 to 5 days. 

ASSESSMENT AND SCORING FRAMEWORK

This framework is based on 3 key questions:

1. do PE managers make solid assessments of potential value creation ?
2. do they establish a value creation plan that is both solid, precise and actionable?
3. do they effectively monitor the execution of the value creation plan?

It consists in series of functional analyses as the audit embeds 10 functional domains of value creation.

The GP-Score team brings together experienced experts, former consultants, entrepreneurs or CXOs, all with at least 20 years of operational experience in creating operational value.

Seniority, expertise, experience and independence.