Joshua Galyon
Residing in Hunting Valley, Ohio, Bassem Mansour brings more than two decades of experience in private equity, investment banking, and business transformation. Holding degrees from the University of Dayton and Case Western Reserve University, he has built a career spanning principal investing, Chapter 11 reorganizations, and leveraged buyouts. As co chief executive officer of Resilience Capital Partners, he has guided the firm in investing in niche manufacturing and business service companies while providing oversight as a board member for several portfolio organizations. This background offers direct relevance to the dynamics of divestitures in private equity portfolio optimization, a process that requires disciplined capital allocation and strategic clarity. With experience leading investments that collectively generate significant revenue and employment, Mr. Mansour’s professional history reflects the type of decision making that shapes effective portfolio pruning and value creation. His long tenure as a Hunting Valley resident provides geographical context to his career.
Importance of Divestitures in Private Equity Portfolio Optimization
Divestitures are the strategic sale or separation of a company’s business unit, brand, or asset to streamline operations, free up resources, and reinvest capital into higher-growth opportunities. They have increasingly become strategic tools that private equity (PE) firms use to redeploy capital, reduce complexity, unlock value across a fund’s portfolio, and redeploy capital. When done well, divestitures make it possible for general partners to reallocate resources to higher-growth businesses and accelerate value creation for remaining assets. Disciplined portfolio pruning and purposeful carve-outs are an important part of next-generation private equity strategy.
Private equity firms take several clear paths when divesting, and each one depends on the strategic goals of the portfolio. They may sell a business directly to a strategic buyer, transfer ownership to another financial sponsor, carve out part of a company, or take a mature business to the public markets. The best route depends on market interest, regulatory considerations, tax implications, and timing. Firms also strengthen the business before selling by improving governance, cleaning up financials, and stabilizing operations, which helps attract stronger offers.
Divestitures are important because they improve strategic focus. When private equity firms sell non-core or underperforming businesses, they free leadership to concentrate time, expertise, and capital on the portfolio companies that offer the strongest growth potential. This clarity makes it easier to execute operating plans, track performance through meaningful KPIs, and pursue opportunities where the firm’s capabilities create the most value. By actively pruning the portfolio, teams can redirect resources into higher return initiatives and strengthen the overall performance of the fund.
Divestitures also create liquidity and fund follow-on growth. Proceeds from a sale can pay down fund-level debt, fund add-on acquisitions for other portfolio companies, or sometimes be returned to limited partners. Buy-and-build, combined with careful portfolio pruning, helps PE firms to create value.
Divestitures often unlock hidden values that the market or acquirers are better positioned to monetize. A carved-out business may struggle inside a large parent company because it is not a top priority. When management attention and capital are limited, the unit often cannot get the resources it needs to perform well. Selling the asset to a buyer with a tighter strategic fit or different capabilities can produce better outcomes for both the seller and buyer.
Divestitures also come with meaningful execution risks that firms must manage carefully. Many teams underestimate the cost of separating a business or fail to prepare a clean and organized data room for buyers. Some struggle with tax issues or the loss of important employees during the transition period. Carve-outs can be particularly challenging because they require the careful separation of shared systems and contracts. Strong planning early in the process, a focused separation team, and experienced advisers help reduce these risks significantly.
Strong governance plays a central role in making divestitures more successful. Firms that conduct regular portfolio reviews can more easily spot assets that no longer fit their strategy. With clear performance metrics and decision points in place, leadership can move quickly when a sale becomes the best option. This approach helps ensure businesses are prepared for a smooth exit rather than being rushed into the market.
Timing also matters. Private equity firms that keep a strong M&A (mergers and acquisitions) pipeline can respond quickly when market conditions favor a sale. They run scenario planning exercises to understand different outcomes and choose the right moment to divest. This level of preparation helps maximize valuation.
About Bassem Mansour
Bassem Mansour, a longtime resident of Hunting Valley, Ohio, is the co chief executive officer of Resilience Capital Partners. He holds a psychology degree from the University of Dayton and an MBA in finance from Case Western Reserve University. His career includes roles in principal investing, investment banking, and corporate reorganizations. He has served on numerous portfolio company boards and has contributed articles to Smart Business magazine. His professional experience reflects deep involvement in private equity strategy, governance, and operational improvement.
