Duke Street Triangle
We have developed a robust approach to building relationships between ourselves, the CEOs of our portfolio businesses and our Operating Partners.
This highly supportive structure is the only one of its kind. Built on open communication and clear lines of responsibility, it recognises the CEO’s need for high levels of support, at the right time and in the right place. Equally it recognises that when conflicts do emerge between us and management teams, everyone benefits from having an independent perspective.
This is provided by our Operating Partners. We have done more than any of our competitors to integrate our Operating Partners into the fabric of our businesses. They are highly regarded, former CEOs, with long experience across a range of sectors and geographies. Importantly, they don’t ever want to be a CEO again. They are involved in the whole lifecycle of our investments from identification, execution, management and realisation. They’re integrated into our investment committee, strategy reviews and work exclusively with Duke Street in UK mid-market private equity. Often they will take on a formal, independent, Non-Executive role – such as Chairman of the board. Their role is to provide support and wise counsel to Duke Street and our CEOs.
At least one of our Investment team – and usually two – will also sit on the board of our companies. Beyond that, each of our CEOs has direct access to professionals and operating partners at the highest level in Duke Street, meeting them regularly for strategic reviews and performance updates. The CEO of a Duke Street company need never feel isolated.
But it’s just as important that they are given the freedom to run their company as they see fit. Our Operating Partners are not there to second guess the CEO or to look over his shoulder.
We make it clear that when it comes to operational matters, the CEO has the last shout.
At the same time Duke Street has the final say in all matters relating to exit strategy. In both cases, the Operating Partner acts as a bridge between Duke Street and the CEO.
The Duke Street Triangle is a proven model because, above all, it is about providing CEOs with the support and resources they need to accelerate the growth of their businesses. Time and time again it has shown itself to be highly effective in empowering management teams to achieve enduring growth.