"Roll up your sleeves": What operational value creation really looks like in Asian PE
What does it take to drive real operational value in Asia's fast-changing private equity landscape? Ahead of her appearance at SuperReturn Asia CFO/COO, Maggie Bian, Partner and COO at HOPU Investments, shares how her team builds value beyond the deal - from talent development and strategic partnerships to hands-on execution across complex markets. In this exclusive Q&A, she discusses the evolving role of operational leaders, key challenges in China and the leadership required to turn vision into long-term growth.
You've held leadership positions at some of Asia's most prominent investment firms. How do you define operational value creation in today's landscape – and what levers do you find most effective post-investment?
Post-investment management in private equity is still in its nascent stage in Asia. This is particularly true with operational value creation, where engagement with founders and collaboration between operations and investment teams are vastly required.
Operational value creation involves “rolling up our sleeves” to work closely with our portfolio companies. The partnership spans from strategy formulation to hands-on execution. This includes crafting operational roadmaps to align with our investment theses and actively supporting their implementation throughout the investment cycle.
At HOPU, we prioritize operational excellence in financial analysis and optimization, human capital introduction, and government relations. We have a diversified portfolio across the Asian markets. Whether it’s scaling up our portfolio companies’ operations or helping them navigate new markets and regulatory dynamics, our role is to help these companies address complexities and drive long-term growth.
What are the key challenges in aligning operational discipline with growth ambitions in fast-changing and complex markets like China?
I believe one of the primary challenges is introducing the necessary discipline without stifling momentum. A common bottleneck stems from the scarcity of experienced operational leaders who can effectively execute strategies at scale. To address this issue, companies should focus on institutionalizing talent development, attracting strong functional leaders, and building execution capacity.
At HOPU, we maximize post-investment value creation for our portfolio companies. We have established and expanded our own Portfolio Management and Portfolio Talent teams, proactively deploying high-caliber executives and seconding HOPU employees into our portfolio companies. We are among the few leading pan-Asian firms with the capability and experience to drive meaningful changes from within, enabling our portfolio companies to navigate market complexities while achieving sustainable growth.
What's your approach to building senior leadership teams that can deliver growth in high-stakes, cross-cultural environments?
Building a capable leadership team for our portfolio companies requires a systematic and adaptive approach. It’s not merely about filling vacancies; it involves strategically deploying talent to navigate operational complications and achieve investment objectives. Our strategy is anchored in three core pillars, supported by dedicated in-house executive search and development professionals.
First, we implement a comprehensive assessment and conduct due diligence using multi-dimensional evaluation processes, such as structured interviews and psychometric assessments, to minimize hiring risks.
Second, we prioritize structured onboarding prioritize and integration process, employing a "100-Day Plan" that incorporates cross-cultural adaptations to ensure effective leadership integration.
Third, we focus on continuous development and performance management, closely tracking leadership performance while promoting continuous learning opportunities.
Overall, we strive to align our hiring goals with the needs of our investment teams and portfolio companies, leveraging multiple recruitment channels to access the broadest possible pool of top talent.
The role of operational leaders in private equity is shifting from functional managers to strategic partners. How do you see this evolution playing out, and what mindset shifts are critical?
Indeed, operational leaders in private equity have undergone a significant transformation from functional managers to strategic partners over the years. This evolution reflects the industry’s shift from a historical focus on financial leverage and returns to a renewed emphasis on operational value creation for portfolio companies.
Having industry-specific and subject matter expertise is critical to guiding successful company transformations in today’s dynamic competitive landscape. Operational experts are now expected to play a critical role throughout the entire investment cycle. They have transitioned from being functional specialists to cross-functional project managers, ensuring cohesive strategy execution. As a result, they have become strategic partners to portfolio companies. We also see a continuous shift in mindset from ‘control’ to ‘empowerment,’ where operational leaders focus on enabling teams rather than exerting control, to capture growth opportunities and synergies.
At HOPU, we are committed to adapting to this transformation by strengthening our operations team. We invest in the development of our operational talent through continuous training that enhances strategic thinking, cross-functional collaboration, and leadership development. Additionally, we promote knowledge sharing and cultivate best practices to ensure our operational leaders are well-equipped to drive real changes within our portfolio companies.
What's one leadership lesson that has stayed with you throughout your career and continues to shape how you operate today?
I am a big believer in doing what you preach as a private equity executive. Running a private equity business is inherently different from running a consumer or technology company. Early in my career, I was encouraged to roll up my sleeves and jump into real businesses — while it was daunting at first to turn a business around with 500 employees, I found it extremely rewarding to approach challenges with a fresh perspective and follow first principles to tackle real business problems.
Over time, I’ve come to appreciate the complexity of the businesses we invest in and the significant team effort required to drive meaningful transformation. Today, I encourage my team to embrace hands-on opportunities whenever possible and to view businesses through a new lens.
I also believe that effective leadership is about enabling others to thrive. It’s essential to foster a corporate culture where individuals feel supported and motivated to drive change, and to create a safe space for collaboration and innovation.
This principle extends to how we work with our portfolio companies. We are committed to being long-term partners, which allows us to build trust, implement meaningful changes, and drive growth.
