COMPANY: The Sterling Group
POSITION: Financial Operating Partner
LOCATION: Houston, TX
TRAVEL: 40-50%
THE FIRM
The Sterling Group is an operationally focused middle market private equity firm focused on the industrial sector. Founded in 1982, Sterling is one of the longest standing private equity firms in North America and today the firm has over $4 billion in assets under management. Sterling’s returns to investors have consistently ranked the firm in the top quartile of private equity firms. Further, 80% of those returns have been driven by organic EBITDA growth derived from Sterling’s operational investing style as opposed to financial engineering. Sterling’s investor base is comprised of some of the largest and most respected global institutional investors.
MISSION STATEMENT
The Financial Operating Partner will serve as a trusted advisor, technical expert and execution facilitator to our deal teams and portfolio company executive teams. The purpose of the role is to evaluate and support the financial operations at our portfolio companies by helping them build their finance team, enhance financial systems and processes, and develop analytics capabilities to match with the overall value creation strategy of the investment. The Financial Operating Partner will be a critical and integral part of the Sterling value creation model.
AREAS OF IMPACT
The Role Will Be Focused In The Following Areas - New Deal Evaluation (~20% of time) - supporting Sterling deal team in evaluating the finance and accounting organization of target investments during due diligence
- Evaluate the following in the context of private equity ownership and Sterling’s investment strategy:
- Capabilities of the existing senior finance and accounting team
- Capabilities and capacity of the existing finance and accounting organization.
- Financial reporting systems and processes
- Internal control environment
- Related functions such as tax, treasury, risk management, FP&A, etc
- Portfolio wide programs (~10% of time) – Developing and continuously improving the financial standard for Sterling portfolio companies
- Maintaining best practice standards in the following areas:
- Financial reporting
- Internal controls
- Risk management
- Treasury/cash management
- Budgeting/FP&A
- Tax
- Financial integration of acquired entities etc.
- Working capital management
- Work with Sterling operational resources to develop a set of standard KPI’s and related reporting that can be applied across various companies/industries.
- Develop and maintain relationships with a group of preferred vendors and consultants to assist with accounting and finance related projects.
- Specific portfolio company value creation and support (~70% of time) – supporting executive teams and Sterling deal team in advancing the financial function effectiveness of portfolio companies.
- Work with Sterling CFO to enhance and implement Sterling’s CFO onboarding process
- Assist the deal team in assessing current finance and accounting team at each portfolio company, and as necessary support the topgrading/buildout of the team required to execute Sterling’s value creation strategy.
- Ensure GAAP compliant, accurate and timely financial reporting to meet requirements of all stakeholders
- Monthly financials for management, lenders, and Sterling
- Annual audit
- Support portfolio company management teams and Sterling deal teams to identify financial process improvement opportunities and risks, and the best routes to the realization of opportunities and mitigation of risks; includes assessing, initiating, and helping plan, monitor and execute improvement initiatives (ie. working capital management)
- Support portfolio company management in developing and implementing the best internal operational reporting metrics to assist in maximizing operating results.
- Daily/weekly/monthly dashboards
- Monthly operating review and board meeting decks
- Budgeting and forecasting
- Manage any 3rd party relationships related to financial functional support at portfolio companies
- Develop network of talented potential financial executives for future portfolio company executive roles
- Support (and potentially work closely with Sterling Technology resource to drive) ERP and BI implementation and make recommendations
- Serve as an audit committee expert to portfolio companies
- Act as interim CFO when required
Engagment Model, Influence And Impact
- Bias to get out in the field with management teams to build relationship, monitor and advise;
- Ability to influence the executive teams to drive the desired business outcomes under the Financial function;
Professional Characteristics
- 15+ years of increasingly senior finance leadership, with direct experience as the standalone CFO, or extensive exposure to advising on and/or implementing financial operations assessment and improvements
- Strong preference for significant experience working with private equity owned companies
- Founder-owned, small/medium business M&A (roll-up) experience is strongly preferred
- Background in public accounting, Big 4 preferred
- A firm executive presence with the ability to influence and work effectively with all types of employees and senior company executives, as well as the company’s capital partners and its Board members
- A career history which displays an increasing level of responsibility within roles, including operational knowledge and involvement.
- Experience working in a “performance based” and fast paced environment
- Experience working with industrial firms (ie. manufacturing, distribution, industrial services)
- Prior experience as financial operating partner in a private equity firm a plus, but not required
- Preference for Houston based candidates
Competencies
- High emotional intelligence and strong interpersonal and communication skills; able to effectively engage and influence portfolio company teams
- Business insight, judgement based on experience and technical understanding
- Ensures accountability and drives for results
- Strong problem-solving skills, able to be a thought leader across multiple levers
- Excites and inspires peak performance from those with whom he/she is engaged
- Combination of entrepreneurial spirit and corporate sophistication
- Possesses a mind-set for continuous improvement
- Active ‘change-agent’; execution focused
