The latest ION Influencers Fireside Chat featured Paul Vega, Partner at Cinven, in a deep dive on value creation in private equity and how firms are adapting in today’s uncertain global environment. The conversation explored Cinven’s history, its approach to scaling value creation, and the critical lessons learned from decades of investing.

Key Topics Discussed

1. Paul Vega’s Background and Cinven’s Global Footprint

• Over 25 years of experience across Europe, North America, and Asia.

• Leads Cinven’s global portfolio team, supporting ~40 companies worldwide.

• Cinven has been operating since 1977, with 160+ investments, $50B+ in realized proceeds, and a recently raised $13B fund (Fund VIII).

2. Why Value Creation Matters More Than Ever

• End of cheap capital and globalization tailwinds → firms must rely less on financial engineering.

• Macroeconomic uncertainty (COVID, inflation, supply chain disruptions, geopolitical conflicts, tariffs).

• Return to first principles: revenue growth, operational excellence, and innovation.

3. Tailored Value Creation Strategies

• No cookie-cutter approach — strategies are bespoke per company.

• Cinven uses 20+ value creation modules covering:

  • Top line: pricing, go-to-market, Salesforce effectiveness.

  • Bottom line: procurement, G&A optimization.

  • Foundational enablers: AI, IT, talent, leadership.

• Comparison to high-performance sports playbooks: repeatable plays + strong players (management teams).

4. Alignment Between Deal Teams and Operating Teams

• One integrated investment case → no competing plans.

• Alignment across:

  • Management teams

  • Deal teams

  • Specialist teams (digital, ESG, capital markets, operating partners).

• Clear roles, incentives, and accountability ensure focus and execution.

5. Lessons Learned from Value Creation Programs

• Be aspirational: aim for full potential, not just incremental growth.

• Stay exit-focused: define the equity story from day one.

• Prioritize ruthlessly: 20% of initiatives drive 80% of value.

• Maintain a strong performance drumbeat: KPI-driven cadence and governance.

• No compromises on talent: leadership capability is the top success factor.

6. The Role of Talent in Driving Results

• Cinven hires senior operators (20–25 years’ experience) from corporates, PE-owned businesses, and consulting.

• Looks for both hard skills (analytics, pattern recognition) and soft skills (collaboration, EQ, influence without authority).

• Firm culture: value + values → collaboration, partnership, and respect.

7. Leveraging Scale Across Portfolio Companies

• Example: group procurement initiative aggregating €50B portfolio spend to negotiate better supplier terms.

• Cinven increasingly connects portfolio companies to unlock synergies.

8. Investor Expectations and Exits

• LPs focus on both creating and realizing value.

• Cinven returned $6.5B to investors in 2024 alone.

• Emphasis on making value creation repeatable, scalable, and rapidly deployable.

Key timestamps:

00:06.88 Introduction to the Fireside Chat
00:34.97 Background of Paul Vega and Cinven
02:37.72 The Changing Landscape of Value Creation
04:42.40 Diverse Approaches to Value Creation
07:32.87 Aligning Teams for Value Creation
10:34.88 Lessons Learned in Value Creation
14:45.13 Hiring for Success in Value Creation
18:45.39 Investor Perspectives on Value Creation
20:16.30 Conclusion and Closing Remarks