Transformation Solutions

Building a Finance and Investment Function for a UK Private Equity Firm

Challenge

A UK-based private equity firm sought to professionalize its finance and investment management function as it scaled operations across Europe. The firm had secured two major project pipelines — one in sustainable agriculture (100% organic vegetable production in greenhouse facilities supplying high-end European restaurants) and another in property development across Eastern Europe.

However, the firm lacked an integrated structure to manage investment governance, financial planning, and performance oversight. There were:

• No standardized budgeting or forecasting processes.

• Limited financial control over multi-country investments.

• Ad-hoc partner engagement for funding and deal execution.

• Unclear accountability across investment and finance teams.

The objective was to design and lead the build-out of a central Finance & Investment Office capable of governing capital allocation, risk management, and return optimization across a diverse portfolio of high-value ventures.

Solution

Harmonic designed a Finance & Investment Transformation Framework, combining strategic planning, operational finance, and institutional investment discipline. The engagement positioned finance as a strategic enabler — balancing agility with governance for scalable private equity expansion.

1. Strategic Operating Model & Mandate Definition

• Defined the charter for the Finance & Investment Office (FIO), aligning its role with the firm’s broader growth and sustainability ambitions.

• Clarified decision rights and ownership boundaries between the CFO, investment directors, and project sponsors.

• Designed the target operating model for end-to-end investment lifecycle governance — from origination and due diligence to execution and performance monitoring.

• Established cross-functional alignment between the agriculture, real estate, and corporate investment arms.

2. Financial Control Framework & Budget Governance

• Built a centralized budgeting and forecasting framework to monitor cashflows, project funding requirements, and working capital management.

• Introduced capital allocation matrices linked to portfolio risk-return profiles.

• Developed financial modelling standards for both greenhouse agri-ventures and Eastern European real estate projects, incorporating scenario analysis and investment waterfall structures.

• Embedded internal audit checkpoints to ensure transparent financial reporting to the Board and investors.

3. Funding Strategy & Partner Engagement

• Mapped the external ecosystem of strategic financial partners, private lenders, and sustainability funds for co-investment opportunities.

• Created a stakeholder engagement plan to attract institutional funding and development grants for ESG-aligned agriculture projects.

• Designed an investment committee governance process, integrating due diligence protocols and performance scorecards.

• Negotiated preferred equity structures and cashflow waterfalls for joint ventures to optimise investor returns.

4. Transformation of Tools, Data, and Insights

• Implemented Power BI dashboards and Excel-based financial control tools to monitor project profitability, budget adherence, and capital efficiency.

• Designed a project performance dashboard tracking financial, operational, and ESG KPIs across regions.

• Developed a rolling forecast model for quarterly Board reporting, integrating both short-term liquidity and long-term portfolio value metrics.

5. Leadership and Cultural Integration

• Hired and onboarded a Finance Transformation Team including FP&A analysts, investment controllers, and risk officers.

• Established an investment governance calendar with quarterly steering sessions and annual strategy reviews.

• Embedded a culture of ownership and precision, empowering local teams in Eastern Europe to report directly into the central Finance Office using standardized templates.

• Defined leadership KPIs tied to project profitability, cash conversion, and investment ROI to drive accountability.

Key Deliverables

• Finance & Investment Target Operating Model (TOM)

• Integrated Budgeting, Forecasting, and Financial Control Framework

• Investment Committee Charter & Governance Toolkit

• Capital Allocation and Portfolio Monitoring Dashboards

• Partner & Funding Engagement Strategy

• Leadership KPIs and Performance Management Framework

Client Benefits

• Established a fully functional Finance & Investment Office that ensured rigorous control and oversight of multi-country capital projects.

• Enabled predictive budgeting and transparent reporting to investors and stakeholders.

• Improved portfolio visibility and ROI tracking, allowing dynamic capital reallocation across ventures.

• Strengthened credibility with financial partners, unlocking access to sustainable finance and development funds.

• Institutionalised a culture of financial discipline, leadership accountability, and data-driven decision-making.