By holding a significant shareholding stake and typically also management control, EIT actively manages its portfolio companies to drive value creation. EIT portfolio managers and competence experts identify value creation opportunities and define strategic agendas for each operating company, and further monitor and manage their execution. Besides implementing a structured corporate governance framework, EIT also sources executives for critical roles within the operating companies and provides strategic operational guidance to their management.
EIT's active portfolio management practice is focused on:
- topline growth and innovation
- margins expansion
- cost efficiencies
- balance sheet management
- capital allocation
- human resources
As an active shareholder, EIT is able to leverage its in-house expertise in order to provide operational leadership and increase the overall profitability of its investments. This in turn enables it to generate superior shareholder returns.