Case Study: Benchmarking for Growth

The Situation: Rapid Growth Leading to Team Overstretch

A leading European-headquartered private equity firm had experienced rapid growth in assets under management (AUM) and geographical expansion. As a result, its tax team was stretched thin, operating in a reactive mode rather than driving strategic tax planning.

The firm’s tax leadership was considering an expansion but needed clear benchmarking data to support decisions on team structure, hiring priorities, and budget allocation.

The Challenge: Understanding Industry Best Practices

• The firm needed data-driven insights on how its tax team’s size, skill composition, and reporting lines compared to competitors.
• Tax leaders were unable to focus on long-term tax planning due to constant short-term demands.
• The executive team required a well-reasoned justification for any headcount expansion.

Our Approach: A Detailed Market Benchmarking Analysis

• Mapping Peer Structures: We analyzed tax team structures across comparable private equity firms, identifying trends in team size, skill distribution, and internal vs. external resource usage.
• Identifying Strategic Gaps: We pinpointed where the firm was under-resourced compared to competitors and where existing team members were performing roles that mismatched with their skills.
• Providing Budget Scenarios: We delivered highlighted the most critical skill gaps, and gave relevant budget information in their key potential hiring jurisdictions. 
• Ensuring Confidentiality: Our analysis was based on aggregated industry insights, ensuring compliance while providing actionable intelligence.

The Outcome: Data-Driven Hiring and Resourcing Decisions

• The firm’s executive team approved a structured tax team expansion, ensuring tax leadership could focus on high-value initiatives.
• Our benchmarking provided a clear roadmap for hiring and resource allocation, reducing uncertainty in budgeting.
• Tax leaders were able to shift from reactive problem-solving to proactive tax strategy development, enhancing the firm’s long-term positioning.