Leahy hire bolsters CD&R

However, some believe that having industry stalwarts on the advisory board only goes so far in driving value for a private equity firm, and that such professionals would be better placed working within the investment teams themselves. "The real question is whether having successful former executives as advisers is sufficient or whether, as is more prevalent in the US, members of the team themselves and their investment committee should have these skills," said Mark Owen, director of NBGI Private Equity.

Owen sees Leahy's appointment as proof of the need for firms to refocus on improving investee company performance as the key driver of value, rather than relying on leverage and multiple arbitrage as was too often the case pre-recession.

"Having access within the team to the skills learned in industry is even more important on smaller sized transactions where the management teams are not as broad or experienced," he adds. "This is where I feel NGBI [whose equity tickets range from £2m-£20m] has been able to add most value and will continue to do so."

Leahy joins CD&R following a 32-year career at Tesco. He joins the London office where he will work alongside CD&R operating partners Fred Kindle, former CEO of ABB; Vindi Banga, former head of Unilever's Food and Home and Personal Care businesses; and Roberto Quarta, former chairman and CEO of BBA. His main focus will be advising portfolio companies on operational issues and assisting in evaluating investment opportunities.

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