@article {Lieber72, author = {Dan Lieber}, title = {Proactive Portfolio Management}, volume = {7}, number = {2}, pages = {72--82}, year = {2004}, doi = {10.3905/jpe.2004.391051}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Increased competition and a change in economic conditions have permanently changed the expected returns of private equity funds. As a result, successful private equity firms will be required to add value through an active and disciplined portfolio management process. The author describes a comprehensive, proactive portfolio management process and related tools that have been successfully implemented at a leading private equity fund. The article reviews investment oversight tools such as summary scorecard preparation, exit plan development and scenario modeling, systematic risk/opportunity assessment, and the creation of deal team action plans, along with specific examples of {\textquotedblleft}real world{\textquotedblright} applications. The suggested approach can help private equity firms realize improved performance by accelerating their response to early warning signs such as key performance indicators; achieving better alignment of deal team and company activities with the ultimate exit plan throughout the life of an investment; optimizing the timing and positioning of an investment exit; and improving the management of the private equity firm{\textquoteright}s professional resources.}, issn = {1096-5572}, URL = {https://jpe.pm-research.com/content/7/2/72}, eprint = {https://jpe.pm-research.com/content/7/2/72.full.pdf}, journal = {The Journal of Private Equity (Retired)} }