Postinvestment

Postinvestment refers to the phase after an investment has been made, encompassing monitoring, governance, value creation, and exit planning. It contrasts with pre-investment activities such as due diligence and deal structuring.

In venture capital and private equity, postinvestment involves ongoing oversight of the portfolio company, board representation, and actions intended to improve performance. Practitioners set milestones, track key performance indicators, approve follow-on funding, and help shape strategic direction.

Common postinvestment practices include regular reporting, governance meetings, and the use of value creation plans and performance dashboards. Managers coordinate risk management, monitor liquidity, and align incentives among investors, managers, and other stakeholders. They may also coordinate introductions to customers, partners, and talent to support growth and operational improvements.

Outcomes focus on maximizing return, ensuring responsible governance, and preparing for exit events. Challenges can include information asymmetry, misaligned expectations, delays in milestone achievement, and governance friction. The postinvestment phase often requires clear communication, disciplined oversight, and a collaborative approach to drive value while preserving capital.

Related concepts include post-investment reviews, exit planning, and follow-on funding in venture and private equity, as well as general portfolio management, ongoing due diligence, and governance. The term is used across investment structures, including funds, corporate venture arms, and standalone investments, to emphasize activities conducted after capital has been committed.