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A partner, or channel, relationship is any arrangement where a third party helps bring your product to customers without sitting on your own payroll. Many companies we work with have resellers of their software, referral partners, technology partners who integrate with their product, or a services partner who delivers implementation on their behalf.

What is surprising is how often, despite partners generating a meaningful share of revenue, those relationships are managed exactly like ordinary customers. They rarely have their own account plans, dedicated resource or growth strategies. Get the fundamentals right and partners become one of the most efficient growth levers available to a mid-market business. Left unmanaged, and the channel underdelivers its full potential. What we have seen, both in helping management teams optimise these strategies and through our network of experts on this topic, are five disciplines that consistently separate a channel that works from one that does not.

1. Fewer, better-fitted partners 

Because partners can feel like a no-loss route to market, companies often say yes to any willing partner, without a view of their ideal partner profile. What this leads to is a long tail of relationships that do not deliver deals at volume, and now cost more to service than they return.

One portfolio business had around 30 partner relationships on its books, ranging from technology resellers to smaller consultancies referring in new customers, but no shared definition of what actually counted as a strategic partner. Simply agreeing that definition, then ranking the list by where the real opportunity sat, which existing relationships were worth deepening and which types of new partner were worth pursuing, reset where time and resource went. The point is not to add more partners, it is to get clear on which ones will deliver.

2. Resource the channel like a business line, not a bolt-on

The businesses we work with that get the most from their partner channel tend to resource it as a distinct part of the business, not an add-on to an existing sales role. A dedicated partner manager matters, but several have told us the bigger unlock was appointing someone to own partner marketing specifically: content, campaigns and enablement material built for a partner audience, rather than repurposed from the direct sales deck. Making it someone’s job, rather than a shared responsibility, gives both the accountability and focus to drive performance.

3. Don't fall foul of short-termism 

Partner revenue tends to compound over years rather than quarters and judging it like a normal sales cycle is a common way to kill a relationship just before it turns the corner. One software business took several years to move from occasional, unplanned referrals to around half of its new business coming through partners, progress that would have looked unremarkable, even disappointing, if judged quarter by quarter.

That said, patience is not the same as coasting. The businesses that get this right still run tight quarterly reviews, checking pipeline health and holding partners to clear next steps, so that patience never tips into neglect.

4. Design incentives that reach the partner's own sales reps  

The commercial terms agreed between two businesses, a referral fee, a revenue share, matter less than most CEOs assume. What tends to decide whether a partnership actually gets sold is whether the person doing the selling, at the partner, can count that sale towards the target they are already being measured against internally. That target is set by the partner, but there is often opportunity to structure the relationship so a joint sale plausibly helps that person hit their own number.

Peoplesafe's experience is a good illustration. Some of its early partnerships started as simple pass-through arrangements, useful to Peoplesafe, but not something the partner's own sales team had much reason to get excited about. Once those partnerships were restructured so that selling the combined solution also counted towards the partner's own sales targets, rather than simply earning Peoplesafe a referral fee, engagement from the partner's sales force changed noticeably.

5. Sponsorship starts at the CEO

Genuine sponsorship means two things. The first is internal: buy-in from the leadership team that translates directly into sales, marketing and customer success. The second is external, and often overlooked: your most important partners should know your CEO too, not only your account management team. A relationship that exists at just one level of the organisation stays fragile.

In practice, this looks like joint business reviews, shared events, or a simple habit of senior leaders on both sides checking in periodically, not as a formality, but as a genuine signal that the relationship is worth continued investment. It costs little, and it is often what separates a partnership that quietly fades when priorities shift from one that holds.

The takeaway

None of these disciplines is complicated on its own. Applied together, they are what separates a partner channel that delivers meaningful, low-cost growth from one that remains an afterthought. For CEOs and CROs wondering whether their own channel could be doing more, these are the questions we’d start with, and we would be delighted to compare notes.

Our first article on ‘What no one tells CEOs about private equity’ was so popular that it confirmed our suspicions: the world of private equity can be incredibly opaque, even to those who operate in it! And while there is a lot of discussion about valuations and deals, there is significantly less discussion about what incentives and decisions sit behind them. Here are four topics that we thought would give CEOs a useful peek behind the curtain.

1. Do private equity investors really have skin in the game? 

One of the common misconceptions about private equity is that investors are simply deploying other people’s money. In reality, the individuals you meet in the investment team (and those outside of the specific investment professionals you are dealing with in the wider PE firm’s team) are going to be expected to invest alongside their funds. That isn’t paper money; it is real cash they send into the firm to go into the deal.

This means that people making those decisions not only have their own capital at risk when they choose to invest, but they know they have all their colleagues’ capital at risk as well. The benefit of this, beyond needing meaningful conviction in the management teams you want to back, is that there is an alignment of interest between investment teams and their end investors (i.e. their LPs – typically funds of funds, endowments or pension managers).

But why does that matter to CEOs? When investors say they care about long-term value creation, they are truly putting their money where their mouth is. Decisions about growth and investment have real consequences for them personally.

2. How do management teams decide how much to roll over? 

When a private equity investment takes place, management teams are given the opportunity to "roll over" some of the proceeds from the transaction into the newly backed business. Usually, it is expected that the leadership team does so if they are staying in the business and that they reinvest a meaningful sum (e.g. 50% of their proceeds less tax and fees), as it shows they have conviction and are committing to the next stage of the journey, i.e. they are buying as well as selling.

But how do you decide how much? The investors want management to have meaningful skin in the game, but beyond that it comes down to how much value do you want to realise today versus how much upside do you want to keep exposure to in the future? Tax can also play a role in that decision. For many CEOs, they want to get the benefit of the value creation strategy that the investor is backing; however, it needs to be balanced with appetite for risk. The important part is that rollover shouldn’t be treated just as a financial structuring exercise; it’s more of a strategic choice about how management teams view the next phase of the company’s journey. The best part is, if your growth strategy goes to plan you should get two bites of the cherry either way – some cash out today, and a stake in what will hopefully be a much bigger business down the road.

3. Do private equity investors prefer organic growth or M&A? 

Private equity investors commonly back acquisition strategies, so it can lead CEOs to assume that investors prioritise M&A opportunities.

In reality, acquisitions can be an excellent way to accelerate growth, enter new markets, add capabilities or build out your customer base – so it’s no surprise private equity-backed businesses use M&A to create value. However, organic growth is often still viewed as the strongest indicator of a company’s underlying quality. Winning a new customer, increasing market share or launching a successful product is often a cheaper way of generating additional revenue than acquiring it through M&A. For that reason, investors often place a premium on businesses that can demonstrate strong organic growth.

The truth is, we’ve had success with pure buy-and-build businesses, and with companies that have grown purely organically, so any ‘preference’ does not exclude the other. But it’s important that when you see headlines about the number of acquisitions a PE firm has backed each year, it doesn’t mean all firms in the portfolio are going to be pursuing aggressive acquisitive strategies.

4. Will a private equity investor load my business with debt?  

Debt is probably the area where private equity attracts the most misunderstanding, particularly relative to our cousins in venture capital. In venture, there is typically no ‘conventional’ debt, as the companies they back are often losing cash, so can’t get a conventional loan from a bank. However, typically venture equity capital money ranks ahead of management via a liquidation preference or participating ‘double dip’ liquidation preference – basically the investor gets a fixed return (1-3x) before management and other shareholders get a pound/euro/dollar. At frothy valuations, that creates a significant hurdle for venture-backed management teams to clear.

If they deviate from plan, venture-backed management teams can and do lose all their value, i.e. these instruments behave like debt with ranking in the capital structure even though they are technically equity. A recent academic study in the US examining the impact of wealth taxes determined that 84% of venture-backed businesses realise zero value and 2% generate 80% of the value, so this is a real risk for 98% of VC-backed companies, not a theoretical one. In private equity, management rolled-over equity typically ranks equally to the investors, so upside and downside risk is shared equally, meaning the value built to the point of a deal is not at risk of being absorbed by an investor’s preferential instruments if there is a rocky patch in performance.

The perception of PE is sometimes that debt is a goal in itself, or that investors seek to maximise leverage wherever possible. It should instead be thought of as a tool – rather than a strategy – and a tool that is designed to benefit all shareholders.

The reason debt is used is relatively simple: it is typically a cheaper source of capital than equity. If an investor puts in £20m, they’re likely hoping to make a return of c.25% IRR (not the same thing, but somewhat akin to interest), whereas a lender would be happy earning c.10% interest. Combining debt and equity can therefore create a more efficient capital structure for the business and improve returns for everyone invested in it, including management teams who hold equity.

Importantly, that only works if debt supports the broader growth plan. Too much debt, and a business will find it harder to invest, hire, innovate or pursue strategic opportunities. That is not in anybody's interest. As per the above, organic growth is a strategic imperative, so it doesn’t make sense / is counterproductive for debt to stymie profitable growth.

Good investors spend a significant amount of time examining different performance scenarios to ensure a business has the flexibility it needs to continue investing while meeting its obligations. Investors will look to get a level of debt that is appropriate for the company’s size, resilience and growth ambitions – not just to maximise leverage.

Conclusion: It’s all about alignment

Discussions about rollover, incentives, growth strategy and debt structures can sometimes appear technical, but they are all rooted in a relatively simple principle: alignment. The strongest partnerships are built when investors and management teams share a common ambition for the future of the business.

We're delighted to share that CSL, the leading global provider of Critical Connectivity®, has acquired SIMPL Wireless, the US-based IoT eSIM connectivity provider.

Based in Georgia, US, SIMPL Wireless is an eSIM-as-a-Service provider that has developed the EverSIM multi-carrier eSIM and Compass platform to make IoT connectivity simple and fast. Customers can be activated within hours using the hardware and carrier contracts they already have, and manage everything through a single dashboard and API across more than 100 mobile operators. SIMPL is built on GSMA SAS-certified infrastructure from Thales, works with partners including T-Mobile, and is a CSL Group company.

As IoT estates grow across borders, enterprises need the flexibility to use the best network wherever their devices operate, and to manage every SIM, contract and network from one place. The ability to choose and change carriers simply expands coverage, while unified management lowers cost, speeds deployment and keeps devices connected when a network goes down.

The acquisition, CSL’s second in 2026 following IoTM Solutions in July, strengthens CSL’s ability to help customers build resilient IoT estates on their own terms - with the carrier choice, uptime and operational control that life, mission and business-critical applications demand.

SIMPL’s offering to customers is fast activation and connectivity that allows customers to add or switch carrier profiles over the air whenever they choose. Compass, its single-pane-of-glass platform, gives customers one dashboard and one API to activate, monitor and manage SIMPL SIMs alongside third-party carrier SIMs, with real-time network visibility and automated self-healing. Combined with CSL’s patented rSIM® multi-network resilience and IoTM’s connectivity orchestration, SIMPL completes a single operating model for customers: choose any network, manage every SIM and eSIM, and stay online when a network fails.

Georgia Ling, Investment Analyst in ECI's Investment Team, reflects on why she swapped advisory for investing, what people outside the industry tend to get wrong about private equity, and the life skill she learned at Pickle Shack.

Q: You moved from M&A advisory to ECI’s investment team. What prompted the change?

I wanted to get closer to the realities on how businesses work and operate in practice. On the advisory side, you spend a lot of time prepping businesses for sale and learn how to construct a compelling story on slides. I’m quite a curious person, so I wanted to get a layer deeper, and move into an environment where I spend more of my time forming a view on how those stories would actually play out in reality, staying with the company’s journey post-transaction.

Q: What did you know about ECI before joining, and how has the reality compared?

I had come across ECI before, as they were well covered in my old team. I was once lined up to work with ECI on a buy-side, and remember asking one of my colleagues what working with ECI was like. He was highly complementary, stating that they’re very straightforward and considered to work with. The buyside unfortunately fell through, but I came into ECI with a positive perception from the start.

I was pleasantly surprised that the outside-in perception of ECI has matched the reality of working here – there’s sometimes quite a mismatch between the two! Everyone is straightforward to work with, and very intentional about their actions. There’s a lot more autonomy and ownership over your time, which is something I’ve valued since joining.

Q: What do people outside the industry tend to get wrong about private equity?

I think people assume private equity houses are all the same – and I don’t blame them! If you look at various firms' websites, they can seem quite homogeneous - similar strategies, similar value creation pillars, and the same jargon, so from the outside in, there doesn’t really seem to be much difference between them.

I personally found it surprising that two firms can have quite similar strategies and operate in the similar parts of the market and yet be completely different to work with. Culture, past experiences, and hierarchy plays a huge role in influencing this, and so I think it’s important not to bundle up all private equity firms under one umbrella!

Q: What have you been enjoying working on?

I’ve been involved with some of our recent deals (Paragin, Helio Intelligence), which has been a great learning experience. I’ve enjoyed meeting management, analysing and dissecting data and discussing views as a case team. Something I appreciate about ECI is that everyone is keen to listen and consider the opinions of each member of the case team.

I found the space that Helio operates in particularly interesting. One of the reasons why I studied Philosophy, Politics and Economics at university was because I really wanted to better understand how the political climate and context feeds into economic decision making. Helio helps with exactly this process, so I’m really excited to see how the company evolves over the coming years!

Q: You read philosophy at university. Do you have a philosophy or mantra when it comes to work?

Something I picked up in banking and during COVID: understand what is in your control and what is not. Especially when it feels like the world is becoming more uncertain, it’s important to appreciate that you can’t control everything. You can, however, control your own response, and how you approach the work in front of you. Learning to separate the two has helped me manage the stress of the job.

Q: What advice would you give someone hoping to move into private equity?

I think the biggest piece of advice I'd give is to spend time understanding your motivation for wanting to move into private equity and having a clear view of what your priorities are. There are many different reasons people are attracted to the industry, but it's worth being clear on what you're looking for and what trade-offs you are willing to accept, as that will influence what type of investor you want to be and what type of firm you want to work at. Hopefully once you’ve gone through this exercise, you’ll be much more compelling in the recruitment process as your answers are genuine and considered.

Quick Fire with Georgia: 

What was your first ever job

From the ages of 16 to 18, I was a front of staff for a wedding catering company called Pickle Shack. I learned that I have a taste for canapés (arancini is my favourite), became the dedicated champagne bottle opener in my family (they think I am a professional) and formed an intense appreciation for those working in service industries. Being on your feet for the 8-hour shifts is hard work!

Where is next on your travel list?

Japan. I know, it’s a classic… but everyone also comes back raving about Japan, and the food and scenery looks gorgeous. I want to plan a road trip where I could eat my way through the country.

If you could instantly learn one new skill, what would it be?

Mandarin. I never learnt growing up, mostly because there were no Chinese schools in Devon at the time. I think it’s a practical language that unlocks a world of culture (and would spare me those slightly awkward moments when someone speaks Mandarin to me, and I am left looking lost!). I did take lessons at university, but it’s hard to speak it properly with my accent.

How would you spend an ideal day off?

I would get up early for a Lagree class (it’s the new reformer pilates), then have a leisurely walk and read a book at Regents Park. Afterwards, I’d grab an early dinner with friends and then round off the evening with some live music. Some of my favourite evenings have been concerts at Wigmore Hall in Marylebone, or the Roundhouse in Kentish Town.

What is the best thing you have ticked off your bucket list?

Machu Picchu, which I did just before joining ECI. I really underestimated how much the altitude would affect me, but it was well worth it as the atmosphere on the hike up was otherworldly and exceeded all of my expectations!