CD&R Taps Former Fortive CEO Jim Lico to Sharpen Industrial Edge

NEW YORK, NY – April 28, 2026 – Private equity giant Clayton, Dubilier & Rice (CD&R) has enlisted former Fortive Corporation President and CEO Jim Lico as an Operating Advisor, a move that signals a deepening commitment to its operational value creation strategy within the burgeoning industrial technology sector. Lico, a renowned industrialist with a nearly three-decade track record of building and leading global technology businesses, will work with the firm's industrials team to source new investments and guide portfolio companies.

The appointment is more than a high-profile hire; it represents the convergence of three powerful trends: the strategic deployment of seasoned operational leaders in private equity, the increasing migration of top-tier public company talent to investment firms, and a renewed focus on the technology-driven transformation of the industrial landscape. For CD&R, a firm long known for its hands-on approach, Lico brings a playbook honed at the highest levels of industrial excellence.

The Architect of Value: Lico's Operational Playbook

Jim Lico's career is defined by a relentless focus on operational improvement, a philosophy epitomized by the legendary Danaher Business System (DBS). Before leading Fortive, Lico spent two decades in senior roles at Danaher Corporation, where he was a key steward of DBS. This system is far more than a set of tools; it is an integrated corporate culture built on the principles of continuous improvement, lean manufacturing, and data-driven decision-making. DBS is widely credited as Danaher’s core competitive advantage, enabling the company to consistently drive efficiency, accelerate innovation, and successfully integrate acquisitions.

Lico’s deep immersion in this system, which included leading the DBS office, provided him with a unique framework for creating value. When he took the helm as the founding CEO of Fortive following its 2016 separation from Danaher, he brought this operational DNA with him. The results were clear: under his leadership from 2016 to 2025, Fortive’s market capitalization surged from $16 billion to over $25 billion. His tenure was marked by disciplined portfolio management, culminating in the 2025 spin-off of the precision technologies segment into a new entity, Ralliant Corporation. This strategic move sharpened Fortive’s focus on its core markets in safety and productivity solutions.

This history makes him a natural fit for CD&R, a firm that has built its reputation on pairing investment capital with operational expertise. "CD&R has built a distinctive model, one that pairs rigorous investment discipline with genuine operating partnership," Lico stated. "I believe that approach creates real value."

His role will be to apply that same rigor to CD&R’s industrial portfolio. The firm’s model relies on identifying strong businesses and making them stronger through operational enhancements. Lico's experience with DBS—which employs tools like Kaizen events, value stream mapping, and policy deployment to eliminate waste and drive growth—provides a proven methodology for achieving just that. He is expected to work directly with management teams to implement best practices, streamline operations, and identify strategic growth opportunities.

A New Chapter for Executive Talent

Lico’s move to CD&R also highlights a significant shift in the career trajectories of top corporate executives. The role of the "Operating Advisor" or "Operating Partner" in private equity has evolved from a passive, advisory position to a central pillar of the value creation process. Research shows that since 2010, operational improvements have become the single largest driver of value in private equity buyouts, far eclipsing the impact of financial leverage.

In response, PE firms are aggressively recruiting leaders like Lico who possess not just strategic vision but deep, hands-on experience running complex global enterprises. These executives bring immediate credibility, extensive networks, and a proven toolkit for driving performance. For the executives themselves, these roles offer a compelling "second act" after leaving the corner office of a public company. They provide an opportunity to apply their skills across a diverse portfolio of companies, mentor a new generation of leaders, and have a tangible impact without the intense daily grind and quarterly reporting pressures of being a public company CEO.

This trend marks a "brain drain" from public corporations to the private markets. PE firms are increasingly seen as platforms where seasoned leaders can leverage their expertise in a more concentrated and impactful way. The move allows Lico to transition from leading a single, massive organization to influencing multiple businesses, effectively multiplying his impact. As CD&R CEO Nate Sleeper noted, Lico "brings deep operational and strategic experience across key sectors that are important to our investment footprint and strategy," underscoring the value placed on his specific, battle-tested knowledge.

Betting on an Industrial Renaissance

The timing of Lico's appointment is particularly telling, coming as the industrial sector undergoes a profound, technology-fueled transformation. The convergence of Information Technology (IT) and Operational Technology (OT) is creating unprecedented opportunities in areas Lico knows well. Trends such as the Industrial Internet of Things (IIoT), artificial intelligence, advanced robotics, and digital twins are no longer theoretical concepts but practical tools for enhancing productivity, building resilient supply chains, and creating new business models.

By bringing Lico into the fold, CD&R is making a clear statement about its intention to be a major player in this industrial renaissance. His experience at Fortive, a company at the forefront of providing smart sensors, monitoring software, and automation solutions, positions him perfectly to help CD&R identify and vet potential investments in this space. He can distinguish genuine innovation from market hype and assess a company’s potential to scale its technology.

Furthermore, his expertise will be invaluable for CD&R's existing portfolio companies as they navigate this complex landscape. Whether it's implementing predictive maintenance using AI, digitalizing a factory floor, or developing a strategy for software-defined automation, Lico's guidance can help these companies accelerate their transformation and gain a competitive edge. This strategic hire is a forward-looking bet that the next wave of significant value creation in the industrial sector will come from companies that successfully merge traditional manufacturing prowess with cutting-edge digital technology. Lico's role will be to ensure CD&R and its portfolio companies are leading that charge.