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Reader Profile

Kenna Baudin
Vice President, Business Leaders Network
3i US Growth Capital

Editor's note: Each month, we ask a Directors & Boards reader to comment on critical issues facing directors today. If you'd like to participate in this section in the future, please email Scott Chase.

Boards have recently become concerned about the pipeline for new director talent, the next generation of committed professionals who see service as part of their professional obligation. What’s your take on this issue?

This issue is particularly relevant for private companies seeking to hire and retain the best director talent and this is particularly true for companies 3i invests in.

Professionals are usually very excited about joining the boards of private companies as it provides a more hands-on interaction with less of the formal reporting requirements that are now in place for public directors.

At 3i, we have noticed that directors typically see board service as not only a professional obligation, but also as a chance to expand their daily exposure beyond their day-to-day role, and view working with growth companies as a particularly rewarding assignment because they are helping them achieve their next stage of development.

What do you look for in terms of talents and attributes when the 3i team selects an interim chief executive or C-suite professional to lead a portfolio company?

In appointing an interim chief executive or C-suite professional to lead a portfolio company, 3i first assesses the individual’s knowledge and experience: we will evaluate the track record of value creation in an international context, relevant sub-sector knowledge, strategic insight, and strong leadership competence including ability to influence in both minority and majority investment positions.

From a personality perspective, we seek self-starters who fit with 3i’s values and approach, possess the drive and the motivation to create value, and have the ability to motivate and manage teams.

How important is international management experience for 3i?

International management experience is crucial to 3i since we are a global firm with a strong local imprint. With 25 offices in 14 different countries, we have “feet on the street” in major markets – out network is extremely international and this is one of our points of differentiation.

As one of the most global mid-market private equity players investing in companies that are active at the global level, or will become global in scope through our involvement, it is essential that executives working with us have global expertise and a global mindset.

Is there a viable pool of senior and/or retired executives willing to take on new challenges and opportunities in turnaround, takeover, M&A, or other situations where new or augmented management is required to lead a company to new success?

There is a viable pool of executives ready to take on new challenges with leadership skills. Many driven executives want to stay engaged post-retirement and are delighted by opportunities to stay involved and be challenged by new endeavors. They might be looking for part-time commitment and flexibility is one of 3i’s hallmarks, evidenced by the way we invest (across growth, buyout, infrastructure, and quoted private equity) and by the way we work with executives.

Your company runs the 3i’s Business Leaders Network. What is it, and how does it work?

3i has created a unique international network of 250 outstanding and experienced business professionals delivering unbeatable reach, experience and relationships. This invitation-only global network provides access to unmatched deal flow of high quality investment opportunities and offers a world of opportunities to chairmen, chief executives, chief financial officers and non-executive directors in 3i portfolio companies. The 3i Business Leaders Network offers its members several advantages ranging from access to 3i’s unrivalled deal flow across our business network, the opportunity to invest alongside 3i, to remunerations for successful deal introductions.

We have been running the Business Leaders Network program for over 15 years and I have overseen the network in North America since its inception in early 2007.

Are you inviting new candidates into 3i’s Business Leaders Network? Can a “prospect” nominate him or herself, or is this all handled internally and through direct referrals?

The 3i Business Leaders Network is always seeking new and qualified candidates. I am constantly reviewing new candidates that either come to us via referrals from current members or apply directly to submit their candidacy. Talented executives that meet our criteria should contact me directly and provide me with their resumes or bios to begin a dialogue.

Can you give us a brief case study where one of your Business Leaders Network members was able to effect dramatic and material improvements for a company within your portfolio?

One of 3i’s former investments was in Gant, a Swedish apparel business that began as a designer and seller of range of menswear and boyswear apparel. At the time we invested, Gant operated in 68 countries with more than 235 independent Gant stores. The management team decided to partner with 3i because of our sector expertise and international network, which allowed them to draw on expertise of 3i managers in Sweden, Spain, Italy and the U.K.

Upon investment, we appointed Mair Barnes, former Managing Director, Woolworths plc and Former Managing Director, House of Fraser, as a Non-executive Director from our network. Based on her profile and achievements growing apparel lines in several markets, we knew she would be the ideal candidate to help the company achieve its aggressive growth objectives.

The results speak for themselves: 3i, in partnership with the company, Mair Barnes and the rest of the board, helped build out a women’s apparel line, developed new channels, and extended the Gant’s geographic reach. 3i ultimately exited the business via an initial public offering and made a return of 4.7x.

When and why did you join 3i in the U.S.? Did you manage a similar program prior to joining 3i?

I was recruited to 3i specifically to lead this initiative. I started my professional career in consulting, and then moved to private equity as a direct investor for the bulk of my career to date. I then spent some time working in private equity executive search. This opportunity was a perfect hybrid of all of my prior career experiences. I joined 3i because of the opportunity to work with a truly stellar group of people in an entrepreneurial atmosphere that is part of a large and established global firm. While on the investment side at my prior private equity firm I played a role in establishing and building our executive network so I was familiar with the value proposition.

How do you think 3i’s Business Leaders Network makes 3i stand out from other PE firms in terms of what it offers? Is this really a unique offering?

3i’s Business Leaders Network is a highly differentiated part of our offering. Few other private equity firms have a network that has been around for over 15 years that has been institutionalized like that of 3i. It is a very unique value proposition that allows talented individuals to develop a relationship with us in a way that is mutually beneficial. We believe in investing in individuals for the long-term and many of the executives who have worked with us continue to do so repeatedly over the course of their careers. 3i and the Business Leaders Network are well poised for success for many years to come.

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If you would like to get additional information regarding 3i’s Business Leaders Network or to apply to this program please contact Kenna Baudin: kenna.baudin@3i.com

Kenna joined 3i as a founding member of the US Growth Capital team from The Flatiron Group, a boutique financial services executive search firm. Prior, Kenna was a Principal at Solera Capital, a NY-based private equity firm, where she focused on growth equity and buyout investments in the media, consumer, and healthcare industries. Kenna worked on the execution side of the business and collaborated with management teams on ongoing strategic, financial, operating and human capital issues. She was also instrumental in building the firm's executive network.
Kenna began her career as a consultant with The Boston Consulting Group in New York. Kenna is actively involved in several non-profit organizations including Sponsors for Educational Opportunity as an Alumni Interviewer and Mentor, the Harvard Business School African-American Alumni Association (HBSAAA), and Comprehensive Development Inc., an educational non-profit.
Kenna received her Masters in Business Administration with Second Year Honors from Harvard Business School and earned a bachelor of science in economics, cum laude, from The Wharton School of Business of the University of Pennsylvania.

About 3i
3i is a world leader in private equity. We focus on Buyouts, Growth Capital, Infrastructure and Quoted Private Equity (“QPE”) and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our business relationships. These underpin the value that we deliver to our portfolio and to our shareholders.