Alvarez & Marsal (A&M) announced the appointment of Richard H. Chen as a Managing Director within its Private Equity Performance Improvement (PEPI) group. Chen, a recognized end-to-end value creation expert for private equity (PE), will lead, build-out and grow PEPI’s U.S. Operational Due Diligence (ODD) practice in response to increasing market demand.
Chen brings two decades of experience advising PE investors and their portfolio companies on operational diligence, value creation planning, and performance improvement issues to his role at A&M. He focuses on delivering end-to-end performance improvements, from due diligence through transformation, which solve for clients’ sales and pricing capabilities, cost reduction issues, and sustainable operating concerns.
Nick Alvarez, Managing Director and Global Practice Leader of A&M’s Private Equity Performance Improvement Group, commented, “As market headwinds intensify, private equity firms are under intense pressure to generate value earlier and more systematically than ever before. It’s at these critical junctures that A&M’s operational heritage, integrated platform, and nimble entrepreneurial culture can mean the difference between stagnation and growth. Richard’s appointment underscores our continued investment in top-tier talent and lines of service enhancements. In alignment with A&M’s Global Transaction Advisory Group, Richard strengthens our ability to build bridges of value creation spanning from deal identification to post-close executions for PE clients.”
Chen’s in-depth waste, infrastructure, distribution, equipment rental and field/technician-based business sector expertise includes advising clients on carveouts, integrations and full operational turnarounds along with developing actionable growth strategies that drive change.
Markus Lahrkamp, PEPI Managing Director and a leader of its Commercial and Operational group, noted, “Knowing when and how to pull cost reduction and value creation levers is critical to helping PE meet the intensifying portfolio companies’ sustainable growth demands. Richard embodies that understanding. He knows how and when to pull these levers across the investment lifecycle, usually starting from diligence through the investment cycle towards exit. His 360-degree view of value generation alongside his experience solving for operational complexities augments our reputation as PE’s trusted advisor for diligence and value creation.”
Previously, Chen served as KPMG’s Strategy Private Equity Channel Leader, responsible for building and growing that firm’s diligence and performance improvement business. Prior to that he worked at AlixPartners, PwC and in technology.
Chen stated, “Private equity clients need a partner who can see around corners, not just look in the rearview mirror. As demand for value upon exit increases, due diligence is being initiated earlier, often at the initial stages of deal identification when firms are exploring sub-sectors for potential investments. A&M’s integrated global platform and freedom from audit conflicts positions the firm as the front runner for meeting PE’s growth needs and portfolio companies’ performance improvement challenges. By expanding our operational due diligence offering we’re bolstering A&M’s high-touch delivery of actionable insights clients have come to know and expect from us.”
Chen earned a Bachelor of Arts degree in Economics from the University of Chicago and an MBA from the Haas School of Business at the University of California, Berkeley.