The Private Equity CEO vs. the Traditional CEO

execs-boxingSure, they carry the same DNA and title. But the operating and expectation differences can be huge and capable of creating a fireball; heads up to headhunters.

The Shareholder vs. the Shareholders
Not having the ongoing management of the shareholders is a plus for the private equity CEO. No public earnings releases, analyst conference calls, important shareholder phone calls, preparation of fancy annual reports and the like. The private equity CEO enjoys the simplicity of one or a couple of shareholders’ or does he? The private equity firm has powerful and timely motives to succeed, creating a different set of pressures. I will disagree with every article written that says private equity companies are not under quarterly earning pressures. In many cases, it’s substituted with monthly EBITDA pressures and loan covenants that require NASCAR skills to stay off the guardrails.

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Michael Lorelli

Michael Lorelli

Michael Lorelli served two PepsiCo division president roles before segueing to private equity. He has led engagements for Riverside Company, Rutledge Capital, and Pouschine Cook Capital Management. He is presently an Operating Partner of Falconhead Capital and Executive Chairman of Rita's Italian Ices.

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