Latest news with #valuecreation
Yahoo
3 days ago
- Business
- Yahoo
Nine Dean Appoints Andrew Kassoy, Impact Pioneer, as Chairman Emeritus
Recognition reflects Kassoy's invaluable contributions to Nine Dean and the movement for stakeholder capitalism NEW YORK, June 18, 2025--(BUSINESS WIRE)--Nine Dean, a holding company that partners with great businesses to drive long-term value for all stakeholders, today announced the appointment of founding team member Andrew Kassoy as Chairman Emeritus, effective immediately. This recognition reflects Kassoy's significant contributions as a valued partner, collaborator, and friend throughout the conception and launch of Nine Dean. Throughout Nine Dean's development, Kassoy has consistently brought a thoughtful perspective, challenging convention and encouraging innovative thinking around business structure and impact. His commitment to shared prosperity and sustainable growth inspires the Nine Dean team to approach opportunities holistically, and with a focus on enduring, inclusive value creation. "I know I speak for our entire team when I say that Andrew profoundly influences the way we think about growth, innovation, and our responsibility to all those connected to Nine Dean," said Aren LeeKong, CEO of Nine Dean. "As both a partner and a friend, Andrew's thoughtful approach and dedication to building businesses that create lasting, shared value has left a meaningful mark on all of us. We're proud to recognize him as Chairman Emeritus and deeply appreciate the foundation he's helped us build." In addition to his work at Nine Dean, Kassoy is a Co-Founder of B Lab, a non-profit building a global movement to redefine success in business so that all companies compete not just to be best in the world, but best for the world, creating a shared and durable prosperity for all. Before leaving the private sector to found B Lab, Kassoy spent 16 years in the private equity industry, as a Partner at MSD Real Estate Capital, an investment vehicle for Michael Dell, as Managing Director in Credit Suisse First Boston's Private Equity Department, and as a founding partner of DLJ Real Estate Capital Partners. He also served as a Board Member of Echoing Green, as a Skoll Awardee for Social Entrepreneurship, on the U.S. working group of the G8 Social Impact Investing Task Force, and on the Forbes Impact 30 list of leading social entrepreneurs. Kassoy's appointment as Chairman Emeritus follows Nine Dean's launch on June 3, 2025. The growing firm looks forward to announcing its full Board of Directors in due course. About Nine Dean Nine Dean is a holding company that acquires lower-middle market businesses and positions them for enduring success through operational excellence and investing in their most valuable asset: employees. The firm's permanent holding company structure aligns all stakeholders and invests in employees to drive profitability across its operating companies, focused on long-term value and sustainable growth. Based in New York City, Nine Dean was founded by a seasoned team with deep expertise across all facets of business ownership, including entrepreneurial ventures, capital markets, credit, private equity, and operations. More information on Nine Dean is available at View source version on Contacts Nine DeanC Street Advisory Groupninedean@ Sign in to access your portfolio
The Australian
6 days ago
- Business
- The Australian
Why CFOs need a capital allocation framework
Determining how to allocate capital is arguably one of the most complex responsibilities facing CFOs today. The process of generating and deploying capital is core to the CFO role and key to producing outsized return on capital — but also one that is quite difficult to perform well. Internal agendas, volatile market conditions, and human biases all cloud the decision-making process. With boards and institutional investors increasingly expecting management to provide clarity on how capital will be deployed to achieve strategic goals, having a robust capital allocation strategy that guides and explains investment decisions is vital. However, according to a global Deloitte survey of business leaders, only 22 per cent claim to be very confident in the ability of their capital allocation approach to execute the organisation's overall strategy and optimise return on capital. This disconnect between expectations and reality has consequences. The absence of well-structured capital allocation framework can lead to suffocation of value creation, suboptimal returns on shareholder capital, and, at the extreme, companies can expose themselves to activist investor pressure or opportunistic takeovers. I recall the case of an SaaS company whose management team could not decide whether the business should allocate additional capital to sales and marketing to chase growth, or double down on product development to improve long-term retention and pricing power. Without a framework to guide them, progress stalled, and ultimately, private equity (who are typically very skilled at capital allocation) acquired the business. The lesson is clear: failing to actively manage capital allocation doesn't mean the decision goes away. It might just be made by someone else. As keepers of the corporate purse, CFOs are the linchpin of any good capital allocation strategy and will ultimately have the most influence over its design. But how do they help ensure the development of a strategy that's fit-for-purpose? It all starts with asking the right questions, clearly and consistently, like: what is our strategy and where is capital needed to execute strategy? What is our strategic asset allocation across the business? For a diversified real estate group, this might mean sector exposure or geographic mix. For a miner, it might relate to commodity exposures. Visibility over where your capital is deployed and the alignment to strategy is a perquisite for intelligent decision-making. Next you could ask what your mandatory capital investments, across both operating and capital expenditure, are. Things like safety upgrades, regulatory compliance or maintenance capex are all essential spends that must be prioritised before discretionary investment. Doing this helps see how much capital there is to work with. Grouping capital needs into categories like maintenance, optimisation, transformation, and growth can also help teams evaluate options more clearly. Aleks Lupul is Lead Partner for Deloitte Capital Allocation, Modelling & Insights CFOs must also define what level of gearing is acceptable and understand how it impacts the cost of capital and appetite for risk. Determining the right level of gearing can be difficult, but scenario analysis is essential, particularly in times of uncertainty. You need to understand the potential impact of volatile trading environments on your business and ability to meet debt covenants, as well as implications on refinancing risk. Equally important are the company's commitments to shareholders and having a clear understanding of what shareholders expect from the business. Dividend policies, reinvestment promises, understanding shareholders' support and appetite to fund growth and share buyback schemes are all part of the capital equation. Sometimes the best use of capital may be to return it to those who have placed their trust in the business. Portfolio performance should also be reviewed regularly, and not just when considering new investments. It is important to remember that capital allocation is not just about the deployment of capital — staying invested in existing assets or businesses is a capital allocation decision too. CFOs should ask whether where their capital is invested continues to be consistent with strategy, maximises shareholder value and whether they are the best owner of the asset or business. By adopting a portfolio approach, companies can spread risk intelligently. For instance, when most of the portfolio is weighted toward stable, low-risk investments, a company can afford to place selective, higher-risk bets on innovation or market expansion. Alternatively, when volatility is high, organisations can dial back risk exposure without halting growth altogether. This type of strategic flexibility is only possible when capital is actively managed. These questions and considerations are not exhaustive but are central to developing a strong capital allocation framework and all the benefits that come with it. But in my view, the best capital allocators also embed a return on capital mindset into their organisations' culture, which guides daily decision-making at all levels of the organisation. The top-performing CFOs foster an organisational mindset where capital is treated as precious, where each dollar invested must be producing returns for the business aligned with long-term goals. This more mature approach also allows for a more integrated view of financial and non-financial objectives — like environmental, social and governance (ESG) concerns. For example, there is often tension between investing in sustainability and delivering immediate shareholder returns (although I would argue that delivering shareholder returns in the long-term cannot be done without ESG in mind). Good capital allocation frameworks don't solve that trade-off, but it does make it more visible. It allows for a conversation about how ESG forms part of capital allocation decisions and how capital allocation can promote ESG agendas which form part of an organisation's strategy. In many ways, company management has never been more scrutinised than it is today. CFOs who fail to take a rigorous approach to capital allocation risk falling short of market and governance expectations. Those who embrace it as a core leadership discipline can unlock tremendous value for the organisation and its shareholders. A well-structured capital allocation framework doesn't just help organisations decide where to invest. It helps companies align human capital with strategy to deploy scarce capital in the areas that achieve greatest return for shareholders and other stakeholders. In an era of constrained resources and heightened scrutiny, that kind of clarity is essential. Aleks Lupul is Lead Partner for Deloitte Capital Allocation, Modelling & Insights. - Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. Please see to learn more. Copyright © 2025 Deloitte Development LLC. All rights reserved. -
Harvard Business Review
6 days ago
- Business
- Harvard Business Review
How Private Equity Firms Are Creating Value with AI
Private equity (PE) firms are particularly interested in rapid value realization from investments in portfolio companies. They ' buy to sell, ' typically purchasing companies they believe are undervalued and try to improve their performance and financials over the course of five to seven years before selling them. Given the promise of AI's transformative potential, the industry is increasingly focused on how this technology can help. The hitch, however, is that quickly creating value through AI investments is far from a sure thing right now. Surveys suggest that only 20–25% of companies have any production application of generative AI in place. A recent survey of 120 large company tech leaders found that only 10% had achieved 'significant' ROI; an additional 11% reported moderate returns. The rest reported no or disappointing returns. While these surveys are focused on generative AI, analytical AI also has a troublesome history of returns in many companies. Even so, a number of investment firms are leaning into this challenge, creating processes and developing use cases that, once refined and proven, can be deployed in a repeatable fashion to drive consistent value creation. One of us (Mahidhar) works at Apollo, where he is an operating partner, head of the data, digital and AI team, and leading efforts to ensure a return on AI in private equity portfolio companies. The other (Davenport) is an academic researcher who studies AI and has done executive education at PE firms. To understand how the industry is approaching this issue, we interviewed eight firms on the issue of value creation through AI. Three of the PE firms we interviewed were specifically created to pursue opportunities involving AI and digital transformation in their investing processes: MGX, which focuses on AI vendors and infrastructure; BayPine, which focuses on driving digital transformation, including the adoption of AI technologies, at its portfolio companies; and GrowthCurve Capital, which is focused on both AI for diligence and for portfolio value creation. Many companies today have found value creation from AI to be challenging. Given PE firms' mandate to create value in a relatively short timeframe, they offer a unique perspective on how to drive innovation in this area. Preparing to Create Value with AI PE firms derive value from their AI investments through a progression of stages, the earliest of which involve preparation within the PE firm itself. The first of these is securing commitment and talent. It may seem obvious, but for AI initiatives to be successful, leadership—at both the PE firm and at portfolio companies—must buy into the idea that the technology offers considerable potential for creating value. This may require education or persuasion, but it is the precursor for success. At a leading PE firm, for example, the initial focus was to identify firm and portfolio company leaders who already believed in the transformational role of AI. Then they were relied on to make the case to less committed executives. With commitment in place, the firm needs to acquire talent—at the leadership level both internally and on the frontlines in portfolio companies. We talked with several firms whose initial inclination was to hire data scientists for these roles, but the consensus among the firms was that they were difficult to hire and retain, and many value creation steps did not require their skills. Ideal leaders for AI initiatives are operating partners who understand dealmaking processes and how to work with portfolio companies. For building and deploying AI solutions in portfolio companies, hiring several data scientists is one sensible approach, but most of the firms we interviewed rely on consultants for this purpose. Misha Logvinov, operating partner at MGX said, 'While the role of data scientists remains important for certain initiatives, advances in AI development and analytics tools now allow full-stack AI engineers, working closely with subject matter experts, to quickly build and deploy AI solutions at scale.' The next stage—still preparatory to building AI products—is assessing AI exposure and conducting detailed AI diligence. This stage involves multiple processes. An AI exposure assessment looks at industries, not companies, and points out where there is risk and opportunity for AI, and which industries are likely to see the greatest positive or negative impact. The assessment then guides the firm toward opportunity domains from AI and away from those with high risk. Not all firms we interviewed conduct an AI exposure assessment, but Apollo does, and its partners find it very valuable. Conducting detailed AI diligence is done when evaluating a particular company for acquisition, to understand AI's role and potential impact on its future value creation. In this process, firms can assess the amount of knowledge workers (potentially affected by genAI), the possible automation or augmentation of the workforce, the competitive landscape as related to AI and a detailed financial assessment considering cost implications and implementation readiness. This is an increasingly important process for PE firms that are committed to the potential value of AI—one firm we interviewed had 25 general partners involved in AI diligence processes—but it can also be performed by or with assistance from outside consultants. Cory A. Eaves, a partner and head of Portfolio Operations at Baypine emphasized, 'Underwriting value creation from data and AI at the outset significantly increases the likelihood of successful implementation during the ownership period.' Apollo takes a similar approach incorporating AI related diligence as appropriate when considering each investment. Again, there isn't a uniform approach. Other PE firms we interviewed said that they considered AI in due diligence processes, but the assessment was not systematic. One firm's AI expert, for example, said that they take a 'generalist approach' to value creation in portfolio firms, and that AI was taken into account only in some industries and acquisition candidates. Implementing AI in Portfolio Companies Once a PE fund has bought a company, AI activity shifts to planning and implementing AI products and projects within the acquired company. That includes developing specific use cases and a roadmap for implementing them, working closely with the CEO and other executives within the company. There are several valid approaches to this important step. One leading firm, for example, takes a 'flywheel' approach that not only focuses on solving business problems with AI but also building sustained capability and momentum in the portfolio company. The flywheel components include: AI governance and compliance Talent recruitment Use case identification and prioritization in alignment with the deal thesis Technology partnerships (curated by the PE fund) Implementation partners (curated by the PE fund) Adoption and value realization Another PE firm uses a DANCE framework for identifying valuable use cases. With its focus on content creation, personalization, and employee productivity, it's well-suited for identifying generative AI use cases. The framework includes: D: Discover insights A: Automate Processes N: Novel creation of products or content C: Customize solutions (personalized products or services) E: Enhance Performance and employee productivity Successful PE firms begin thinking about potential exit scenarios almost as soon as they have bought a company, and thus need to consider how long the AI initiatives will take to implement and whether they would make the company more attractive to a future acquirer. For example, two AI leaders in PE firms mentioned that individual productivity applications of gen AI are unlikely to appeal to buyers unless there are carefully measured productivity gains, which can be difficult to accomplish. In general, PE leaders said they seek improvements from AI in operational metrics that demonstrate momentum throughout the ownership period. One executive felt early on in their company's AI journey (2022) that even proofs of concept of AI use cases might be sufficient to show the next buyer the potential value of AI, which would avoid all of the challenges of production deployment. However, in 2025 it's clear that some production deployments with demonstrable value are required by both limited partner investors and potential next buyers. Several PE firm AI leaders noted that it is important to address data quality—either structured data for analytical AI use cases, or unstructured data for gen AI applications —before building AI. The data quality issues ideally would surface during the diligence process. However, given the cost and time of substantial data management initiatives, it's important to be selective in which data domains are improved. 'Avoid the temptation to boil the ocean' was one AI leader's comment. There are also important talent and change management issues to be considered. From a talent standpoint, a key question is who will do the AI development and implementation. There are three primary options: use external consultants, rely on the portfolio company's own personnel, or build an internal center of excellence that houses technology capabilities and drives implementation across the firm and its portfolio. Although some PE firms we interviewed have built small CoEs, the primary approach is to introduce portfolio companies to an ecosystem of talent resources that can augment their internal expertise. One AI leader at a PE firm said that, in part because of talent challenges, the firm is encouraging portfolio companies either to buy AI applications rather than build them, or leverage use cases already built by other portfolio companies. A key change management issue is to get buy-in and recruit stakeholders within the portfolio company. 'This is a carpe diem moment for companies to see their data as an off-balance sheet item,' Sajjad Jaffer, head of data and analytics at Growthcurve Capital, told us. 'Data can be both a latent asset and a latent liability. The private equity industry is in the early innings of infusing a 'data first' culture. This culture starts at the top with the CEO. Private equity boards are also developing a data first approach to guiding their CEOs and management teams.' Another PE firm attempts to build commitment by involving the company's executive team and board in use-case prioritization and then asking for management volunteers to be accountable for implementation. Another leans on functional heads (e.g., the CFO for a finance-oriented use case) to be the primary driver of the project. Several of the AI leaders in firms emphasized that analytical AI (as opposed to generative) can often create more rapid value in portfolio companies. For example, one firm used analytical AI to identify a portfolio company's best and worst customers. Another used it to identify cross-sell opportunities. The companies most focused on value creation with generative AI were primarily viewing it as a means of creating better and less expensive products and services, such as in a textbook company and a professional services firm. The commitment by these PE firms to AI-enabled transformation is evidence that large-scale investors see value in the technology. But it doesn't come automatically by any means. The firms and companies that will be most successful in driving value creation through AI applications are those that both see the big picture – how AI is impacting specific industries in connection with other macro trends – and also focus on the narrow, specific use cases that translate into measurable improvements in productivity, profitability and growth. The AI-focused due diligence and value-creation activities in PE portfolio companies are a clear indication that AI investments won't yield sufficient value without careful analysis, planning and implementation. As the PE playbook continues to evolve towards a greater focus on initiatives that drive intrinsic value creation, the proven and repeatable AI use cases are being developed now. Any company can and should adopt the approaches that PE firms use to make the most of this transformative technology.
Yahoo
04-06-2025
- Business
- Yahoo
UK's FRC revamps investor stewardship code
The Financial Reporting Council (FRC) has announced a significant overhaul of the UK Stewardship Code to prioritise value creation and engagement. The updated UK Stewardship Code 2026 is set to take effect from 1 January 2026. The revised code aims to foster long-term sustainable value creation for clients and beneficiaries while reducing the reporting burden for its nearly 300 signatories, who collectively manage approximately £50trn in assets. Following an extensive consultation process involving over 1,500 stakeholders, the FRC has refined the code to enhance engagement between market participants and streamline reporting requirements. The consultation began with preliminary discussions in February 2024, followed by a formal consultation period from 11 November 2024 to 19 February 2025, and incorporated insights from four years of reporting under the 2020 Code. Key changes in the UK Stewardship Code 2026 include an updated definition of stewardship, which now centres on creating long-term sustainable value. The code introduces fewer principles and shorter reporting prompts to replace detailed expectations, aiming to eliminate formulaic 'box-ticking' approaches. Early evidence suggests signatories could reduce reporting volume by 20-30% without compromising quality. The revised code offers a flexible reporting structure, allowing signatories to submit separate Policy and Context Disclosures and Activities and Outcomes Reports or combine them into a single document. The Policy and Context Disclosure will only need to be submitted once every four years. Additionally, the code now includes tailored Principles for different signatory types, such as asset owners, asset managers, proxy advisors, investment consultants, and engagement service providers, marking the first time the latter three groups have specific Principles. To aid implementation, particularly for those managing non-equity asset classes, the FRC has introduced optional guidance with practical tips and examples. The code operates within a regulatory framework alongside the Financial Conduct Authority's (FCA) oversight of financial markets, the Pensions Regulator's protection of member interests, and the Department for Work and Pensions' pension scheme regulations. To facilitate the transition, 2026 will serve as a transition year, during which no existing signatories will be removed from the signatory list following their 2026 application. The FRC will support signatories through publications, webinars, and bilateral discussions to ensure a smooth adoption of the new Code. FRC CEO Richard Moriarty said: "The UK Stewardship Code 2026 provides signatories with a flexible principles-based framework that provides greater transparency on their stewardship in the face of unprecedented uncertainty. 'Extensive consultation confirmed strong investor backing for the code's importance and has directly informed the changes we have made to ensure it remains fit for the future. The updated code focuses on long-term sustainable value creation while cutting unnecessary reporting and improving engagement quality. New dedicated principles for proxy advisers increase transparency in the investment chain. 'The code is not prescriptive and does not direct how any signatory should choose to invest. It takes a principles-based approach which is focused on delivering a clear outcome of value creation for clients and beneficiaries.' In May 2025, the FRC released a report on the NHS audit market, providing insights to aid the government's efforts in reforming the local audit system. "UK's FRC revamps investor stewardship code " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
03-06-2025
- Business
- Zawya
Agthia Group appoints Jeroen Nijs as Chief Financial Officer
Abu Dhabi, UAE – Agthia Group PJSC ('Agthia' or 'the Group'), one of the region's leading food and beverage companies, today announced the appointment of Jeroen Nijs as Group Chief Financial Officer. This appointment marks a strategic step in Agthia's journey to further strengthen its financial infrastructure, accelerate transformation, and deepen its focus on long-term value creation, resilience, and operational excellence. Bringing over 25 years of international leadership experience, Jeroen has held senior finance roles at global FMCG companies including Flora Food Group, Mondelēz International, Danone and PepsiCo. Most recently, he served as Global Deputy CFO of Flora Food Group, a USD 3.5 billion consumer packaged goods company. During his time, he introduced AI-enabled Revenue Growth Management, steered post-carve-out performance improvements and oversaw global commercial and supply-chain finance, as well as FP&A functions. During his tenure at Mondelēz Europe, he held several key positions, including Finance Director M&A, Category CFO for the Meals business and Head of Asset Management & Treasury. Jeroen has a track record of talent development and has consistently built high-performing finance teams. He holds a Master of Science in Business & Information Systems Engineering from the University of Hasselt in Belgium. Salmeen Al Ameri, Managing Director and Chief Executive Officer of Agthia Group, commented: 'Jeroen joins Agthia at a key moment in our transformation journey, as we sharpen our focus on operational excellence, financial discipline, and long-term resilience. His global expertise, digital mindset, and strong track record in driving financial innovation will be instrumental as we build a more agile, data-driven organization. Beyond his technical capabilities, Jeroen brings a leadership style rooted in collaboration and integrity - qualities that align closely with Agthia's values and future ambition. I look forward to working with him as we create lasting value for our shareholders, empower our people, and strengthen our position as a responsible, future-focused F&B leader.' Jeroen Nijs, Group Chief Financial Officer of Agthia Group, added: 'It is a privilege to join Agthia at such a pivotal time. The Group's ambitious vision and clear sense of purpose resonate strongly with my own values as a finance leader, as well as my passion for combining purpose with performance. Together with the talented leadership team and colleagues, I look forward to driving the next chapter of Agthia's transformation by building an agile, data-driven and consumer-centric organisation that delivers sustainable, profitable growth and elevates Agthia's relevance on the global FMCG stage.' Hala Hobeiche Katounas, who served as the Group's Interim CFO from January 2025, will resume her responsibilities as Head of Mergers and Acquisitions. About Agthia Agthia Group PJSC (ADX: AGTHIA) is one of the region's leading food and beverage companies headquartered in Abu Dhabi and part of ADQ, an active sovereign investor focused on critical infrastructure and global supply chains. Established in 2004, Agthia has evolved into a diversified, multi-category F&B leader with a strong regional footprint across the UAE, Saudi Arabia, Kuwait, Oman, Egypt, Turkey, and Jordan. The Group's integrated portfolio includes market-leading brands across four key categories: Water & Food (Al Ain Water, Al Bayan, VOSS, Alpin, Campa Cola, SunRice, Al Ain Food), Snacking (Al Foah, BMB, Abu Auf, Al Faysal Bakery & Sweets), Protein and Frozen (Nabil Foods, Atyab, Al Ain Frozen Vegetables), and Agri-Business (Grand Mills, Agrivita). With more than 12,000 employees across its operations, Agthia's products reach consumers in over 60 markets worldwide. For more information, please visit or, email us on corpcoms@ For media requests, please contact: Mohamed Rashaad - Media Relations Director, Influence Communications Email: Forward Looking Statements: Agthia Group PJSC and its management may make forward-looking statements regarding the Group's financial condition, operations, and business. These statements often include terms such as 'anticipates,' 'targets,' 'expects,' 'hopes,' 'estimates,' 'intends,' 'plans,' 'goals,' 'believes,' 'continues,' as well as future or conditional verbs like 'will,' 'may,' 'might,' 'should,' 'would,' and 'could.' Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially. Factors influencing such outcomes include, but are not limited to, market conditions, competition, production inputs, currency fluctuations, tax exposures, and regulatory compliance. While Agthia Group PJSC believes it has a reasonable basis for making these statements, readers are advised to approach such forward-looking information with caution. Agthia does not commit to updating these statements, except as required by law.
