Case: Executive Background Check — vetting a CEO candidate for a PE fund (M&A)
Context: a PE fund (AUM 1B) was considering appointing a CEO to a portfolio company (€340M revenue). The candidate was a former C-level executive from a DAX-40 company.
Scope of the check: reputation audit, litigation records (DE, US, UK, CH), beneficial ownership registries, financial history, sanctions/PEP/adverse media, reference checks (15 people).
Red flags:
- A hidden 12% stake in a competitor held through a family trust (Liechtenstein)
- A 2021 deal with a sanctioned oligarch — not disclosed
- 2 civil claims for breach of fiduciary duty (UK High Court) — under NDA
- Aggressive tax optimisation through hybrid mismatches (BEPS)
Outcome: the PE fund withdrew from the hire at the final stage, avoiding a reputational crisis.
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