Why Skipping a Vintage Could Cost You More Than You Think
In the fast-paced world of private equity, timing is everything. But when it comes to deploying capital, some firms are tempted to “skip a vintage”—holding back from investing in a particular year due to market uncertainty or valuation concerns. While this may seem prudent in the short term, history and data suggest it can be a costly mistake. At Lancor, where we specialize in placing transformative leadership in PE-backed portfolio companies, we’ve seen firsthand how strategic consistency in investment—and talent—drives long-term success.
- The Myth of Market Timing
Private equity firms often consider skipping a vintage during periods of economic volatility or inflated valuations. The logic is simple: wait for a better entry point. However, as highlighted in Private Equity International, vintage year performance is notoriously difficult to predict. Some of the best-performing funds have emerged from periods of uncertainty, precisely because they were able to acquire assets at lower prices and drive operational improvements.
Solution: Rather than trying to time the market, focus on building resilient investment strategies supported by strong leadership. At Lancor, we help firms identify executives who thrive in ambiguity—leaders who can navigate downturns, drive growth, and create value regardless of macroeconomic conditions.
- The Cost of Inconsistency
Skipping a vintage doesn’t just mean missing out on potential returns—it disrupts the rhythm of capital deployment and portfolio construction. This inconsistency can lead to gaps in fund performance, misalignment with LP expectations, and a lack of diversification across economic cycles.
Solution: Maintain a disciplined investment cadence. Even in challenging environments, there are opportunities to acquire and build great businesses. Lancor partners with PE firms to ensure that each investment is backed by the right executive talent—individuals with the experience and agility to execute value creation plans across varying market conditions.
- Leadership as a Hedge Against Uncertainty
When markets are unpredictable, the quality of leadership becomes even more critical. A strong CEO or board can be the difference between a portfolio company that flounders and one that flourishes. Skipping a vintage may mean missing the chance to back a business with exceptional leadership potential.
Solution: Invest in leadership as rigorously as you invest in assets. Our firm specializes in C-suite and board placements for PE-backed companies, ensuring that every deal is supported by executives who understand the unique demands of private equity ownership. These leaders bring operational excellence, strategic clarity, and the ability to pivot when needed—qualities that are invaluable in uncertain times.
Final Thoughts
Skipping a vintage may feel like a safe move, but it often comes at the expense of long-term performance and strategic momentum. The most successful private equity firms understand that consistency, discipline, and leadership are the true drivers of value. At Lancor, we’re here to help you make every vintage count—by ensuring that your portfolio companies are led by the best.
