Afleveringen
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Welcome back to The Private Equity Podcast by Raw Selection hosted by Alex Rawlings! Today’s guest is Joe Gerber, a proven Operating Partner and transformation expert. In this episode, we explore Driving EBITDA Growth Through Data Metrics. Joe shares actionable strategies on leveraging real-time data, optimizing decision-making, and taking reporting from good to great. Discover how Private Equity firms and portfolio executives can use data to identify inefficiencies, drive operational excellence, and boost EBITDA growth.
Breakdown:
[00:00] What does good reporting look like? Starting with excellence and working backward.
[00:12] Building effective teams without geographical limits.
[00:41] Joe’s background: Middle-market investment banking, transforming businesses, and PE advisory work.
[01:39] The biggest reporting mistakes PE firms make and how to correct them.
[02:36] Real-time reporting example: Cutting headcount by 30% and growing EBITDA.
[04:32] Metrics to track daily: Real-time insights to forecast performance.
[06:50] How real-time data leads to operational pivots and improved decision-making.
[09:15] Optimizing working capital to fuel growth and cash flow.
[11:33] Taking reporting from good to great: Key improvements PE firms need.
[13:01] Assessing management teams early with data-driven insights.
[15:46] Where to start: Key data points in multi-location businesses.
[18:41] Coaching CEOs: Common gaps and how to address them.
[20:19] Joe’s influences: The Art of Gathering, personal growth, and daily reads.
[22:43] Best way to connect with Joe: LinkedIn.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
You can connect with Joe Gerber on LinkedIn here.
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected] -
Welcome back to The Private Equity Podcast by Raw Selection, In this episode, host Alex Rawlings sits down with Sam Bendix, Partner of Investor Relations at Chicago Pacific Founders. In this episode, we dive deep into what it takes for Private Equity firms to truly stand out in an increasingly competitive market.
Sam shares actionable insights on how differentiation can impact talent attraction, capital raising, and deal origination. Sam discusses the importance of building a strong brand, fostering innovation, and effectively communicating your firm’s story.
[00:00] Brand is a product of the people building it and consistent results.
[00:13] Importance of differentiation in attracting talent, capital, and investments.
[00:42] Introduction to Sam Bendix, Partner of Investor Relations at Chicago Pacific Founders, and the episode's focus on differentiation in private equity.
[01:11] Sam’s career journey from investment banking to real estate investments and IR roles across various firms.
[04:57] Overview of Chicago Pacific Founders and its healthcare-focused investment strategy.
[06:24] The mistake of inconsistent messaging and the importance of cohesive communication.
[08:07] Differentiation strategies: strategic positioning, operational strengths, and client-centric innovation.
[10:55] Proprietary processes, attracting top talent, and creating barriers to imitation.
[12:18] Case study: Proving differentiation through performance and results.
[13:12] The role of brand recognition and consistent execution in building a firm’s reputation.
[14:39] Educating the market as a key element of branding and thought leadership.
[16:38] Attracting talent: building a network and aligning with career aspirations.
[19:01] Revisiting assumptions and fostering innovation for market differentiation.
[19:59] The role of talent in building and maintaining differentiation.
[22:26] Alex shares insights on private equity firms’ branding and talent strategies.
[28:06] Importance of putting yourself out there and documenting over creating for awareness.
[33:24] Building trust through transparency and thought leadership.
[36:17] Efficiently qualifying leads and fostering trust through shared insights.
[38:12] Challenges in communication: sticking to agendas, avoiding jargon, and active listening.
[42:03] Tools for effective communication: checklists, frameworks, and structured conversations.
[43:27] Recommended communication frameworks: What-So What-Now What and others.
[45:23] Sam’s book and podcast recommendations for effective communication and decision-making.
[46:52] Importance of knowing when to quit and insights from behavioral science.
[47:21] Sam invites listeners to connect via email for further discussions.
[47:44] Recap of the conversation's key themes and the importance of continuous improvement in differentiation strategies.
You can connect with Sam on LinkedIn by visiting his profile here.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected] -
Zijn er afleveringen die ontbreken?
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Welcome back to The Private Equity Podcast by Raw Selection! In this episode, Alex Rawlings welcomes back Adam Coffey, CEO and author of the Private Equity Playbook. Adam shares his strategies for scaling businesses, reducing employee turnover, and building strong company cultures. He emphasizes hiring for future growth, addressing employee concerns, and using hybrid work models to retain top talent. Adam also discusses his updated edition of the Private Equity Playbook, offering new post-COVID business insights.
Breakdown:
[00:00] Most Private Equity firms report a success rate of only 20-30% with CXO hires, with 30% being quite rare.[00:46] Adam, gives us a brief insight into your background.
[01:15] Adam reflects on his time at GE, leading companies through private equity backing, and now helping entrepreneurs grow their businesses.
[04:06] Adam talks about the importance of culture in scaling businesses and the challenge of reducing employee turnover from 41%. He highlights how different regions and employee needs required tailored approaches to address issues and improve retention.
[07:30] He explains how culture, leadership, and people are fundamental when scaling businesses. Having a strong culture ensures employees stay and grow, making talent the key to driving success.
[09:25] Adam dives into how he tackled turnover in different regions, using examples from the Pacific Northwest and Texas, where pay scale and benefits played a role in employee satisfaction.
[12:15] By investing in people early on and addressing their needs, Adam quickly reduced turnover to below industry standards. He explains how transparency and early investments helped build trust and boost employee engagement.
[15:01] Adam discusses how private equity firms struggle with transitioning founder-led companies to PE-backed environments, emphasizing the importance of communicating career opportunities and company growth potential.
[17:49] When acquiring companies, Adam emphasizes how better benefits and career development opportunities within a larger organization can turn acquisition anxiety into employee buy-in.
[19:36] Adam addresses the shift in work culture, particularly after COVID-19, and the challenges and benefits of remote work in recruiting talent nationally.
[23:16] He highlights how businesses can still maintain flexibility for employees while ensuring productivity and accountability. Companies that find the right balance will be better positioned for growth.
[27:24] Adam shares his approach to hiring top executive talent, with a focus on aligning work to be done with the candidate's experience.
[33:01] He stresses the importance of hiring leaders who can guide the company through growth and challenges, even if it means making difficult decisions like upgrading talent.
[38:10] Adam talks about the importance of culture fit when hiring and how toxic employees can disrupt growth.
[41:59] Adam reveals his process for assessing talent within six months.
[44:15] Adam announces his updated edition of the Private Equity Playbook, highlighting new insights post-COVID and why it's been a top read for private equity professionals for years.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
You can connect with Adam Coffey on LinkedIn here.
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected] -
Welcome back to The Private Equity Podcast by Raw Selection, In this episode, host Alex Rawlings sits down with Matt Bodnar, founder and managing partner of Eidolon Capital. They discuss Eidolon’s unique deal origination strategies, including innovative approaches like direct mail, and how their flexibility in deal-making helps them close deals where more rigid firms miss out. Matt also shares valuable insights on long-term investing, inspired by Berkshire Hathaway, and offers top recommendations on business, psychology, and deal-making books.
Breakdown:[00:00] Matt explains how their market position was inspired by Berkshire Hathaway, leading them to find unique opportunities by being flexible where others are rigid.
[00:12] PE firms often miss out on deals due to their rigid criteria; Eidolon benefits from a more flexible approach.
[00:26] Matt mentions Extreme Ownership as one of his favorite books and shares it with his management teams.
[00:53] Introduction to Matt Bodnar, founder of Eidolon Capital. The conversation covers deal origination, using direct mail, and valuable book recommendations.
[01:21] Goldman Sachs, starting Eidolon Capital, and focusing on lower middle market companies with a long-term approach.
[02:17] Matt identifies rigid deal structures as a common mistake PE firms make, missing opportunities to tailor deals based on sellers' needs.
[03:09] Flexibility in deal-making, like structuring equity rolls and earn-outs, gives Eidolon an advantage over more rigid buyers.
[04:34] Matt shares Eidolon’s broad deal origination strategies, including cold email, LinkedIn, direct mail, and networking.
[07:46] The importance of market positioning and personal outreach from principals to increase deal engagement.
[09:39] Why principals contacting sellers directly makes a significant difference in building rapport and closing deals.
[10:35] Direct mail as an effective, less crowded method for sourcing deals, especially in old-economy sectors like manufacturing and distribution.
[13:23] Eidolon’s brand focuses on long-term investing and taking care of all stakeholders, inspired by Berkshire Hathaway.
[15:16] Eidolon’s flexibility with capital and bespoke deal structures allows them to close deals even in suboptimal conditions where other firms might walk away.
[17:09] How taking a long-term view, as opposed to the typical 3-5 year private equity time horizon, results in better decisions and stronger outcomes for companies.
[19:25] Matt discusses the importance of staying informed on macroeconomic trends, the Fed, and market cycles to understand the broader impact on investment decisions.
[20:48] Book recommendation: How to Make a Few Billion Dollars by Brad Jacobs, a prolific entrepreneur who founded or acquired several billion-dollar companies.
[22:41] Matt shares how deep reading into human psychology and decision-making (Charlie Munger’s Poor Charlie’s Almanac and Robert Cialdini’s Influence) shapes his approach to deals and negotiation.
You can connect with Matt on LinkedIn by visiting his profile here.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected] -
Welcome back to The Private Equity Podcast, by Raw Selection! In this episode, Alex is joined by Robb Powell, an experienced Operating Partner and former CEO who has successfully built and sold two businesses. Robb discusses the deployment of technology and AI in private equity-backed companies, shares insights on driving cultural transformation, and explores the importance of enabling people for business success.
Breakdown:
[00:00] Robb discusses how private equity firms and portfolio companies can start using AI.
[00:12] Introduction to Robb Powell, an operating partner and former founder and CEO. The episode covers tech, AI, and culture.
[00:41] Robb shares his background and experience with acquisitions, board work, and leveraging technology for business growth.
[01:11] The importance of using technology to drive sales and agility in companies.
[02:06] Common mistake in private equity: focusing too much on finances post-acquisition, neglecting team assessments and aligning people with goals.
[03:33] Robb’s method for assessing management teams, using written responses to understand their thought process.
[05:00] Building a culture of success focused on enabling others and creating referral-worthy work.
[07:01] The importance of having a clear narrative about the value you're providing in any role.
[08:29] Robb’s thoughts on aligning people and driving change in organizations, including when it’s time to let people go.
[11:19] Overview of Robb’s technology and digital transformation work with various companies, particularly in sales and service industries.
[13:41] Robb shares how AI is being used to transform roles, including automating coding tasks in a tech company.
[14:34] Exploring where private equity firms and portfolio companies should start with AI and ChatGPT.
[15:59] Robb’s advice on using AI tools to help businesses innovate and work more efficiently.
[17:54] The future of AI: replacing tasks, not jobs, and making people smarter through automation.
[20:19] The potential of using existing tools to implement AI in businesses without needing large consulting firms.
[21:46] Robb’s current AI project with a high-end wine room business and the value AI adds to search functionality on websites.
[22:45] Robb’s influences and recommendations for books, podcasts, and thought leaders, including Acquired and Peter Diamandis’ work.
[26:04] How to connect with Robb Powell via LinkedIn.
You can connect with Robb on LinkedIn by visiting his profile here.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected] -
Welcome back to The Private Equity Podcast, by Raw Selection! In this episode, Alex is joined by Andrew Towne, a partner at Olympus Pines and a five-time world record holder. Andrew shares his journey from private equity to breaking world records, including his impressive mountain climbing feats and insights into the private equity industry. Join us as we dive into the mindset and strategies of this remarkable private equity leader.
Breakdown:[00:00] Andrew shares his experience climbing Aconcagua during a deadly season.
[00:19] Introduction to Andrew’s investment focus in the American car wash industry and his world records.
[01:53] Andrew discusses his career journey, starting in international relations and transitioning to private equity.
[02:18] The common mistake private equity firms make: neglecting operations and transformation.
[02:45] Why portfolio operations are essential for unlocking value in competitive deals.
[03:14] Examples of operational improvements in revenue and cost management within portfolio companies.
[05:06] Andrew’s consulting background at Boston Consulting Group and his shift into private equity.
[06:07] How living abroad in countries like Germany and Kenya shaped Andrew’s worldview.
[07:34] Moving from consulting to private equity: Andrew wanted to own decisions and manage risk.
[09:31] Lessons from world travel: people are more similar than different across cultures.
[12:36] A customer’s comment at a car wash illustrates how people view different roles in society.
[15:05] Why Andrew and his team chose to invest in the evolving American car wash industry.
[16:26] Technological innovations and automation driving growth in the car wash business.
[17:49] How Andrew’s car washes use advanced technology to ensure customer satisfaction.
[18:48] Balancing customer service with profitability in the car wash sector.
[20:15] The fragmented nature of the car wash industry creates growth opportunities.
[21:44] Challenges in building new car washes and scaling operations.
[22:25] Andrew’s journey from overcoming childhood obesity to breaking world records.
[24:47] How rowing at Yale taught Andrew to push through mental barriers and trust himself.
[26:09] After completing the Seven Summits, Andrew turned to ocean rowing and set world records.
[28:04] Stories from his expeditions, including surviving a deadly earthquake at Everest base camp.
[29:02] The story behind Andrew’s world-record row from South America to Antarctica.
[31:28] Andrew’s approach to confronting fears and mental challenges in everyday life.
[35:21] Closing remarks from Alex and Andrew summarizing their discussion on private equity, personal growth, and world records.
You can connect with Andrew Towne on LinkedIn by visiting his profile here.To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected] -
Welcome back to The Private Equity Podcast by Raw Selection! In this episode, Alex is joined by Beth Pollack, an applied AI and data strategy operating partner with over two decades of experience in building decision systems. Beth works closely with private equity firms and their portfolio companies to drive value through AI and data initiatives. She shares insights on how AI can be effectively implemented in private equity-backed companies, avoiding common mistakes and maximizing opportunities for growth.
Breakdown:
[00:00] Introduction to Beth Pollack, AI and data expert, discussing AI's role in private equity-backed companies.[00:31] Beth shares her background, with over 20 years of experience in AI and data strategy.
[00:59] Beth highlights common mistakes in AI implementation, like starting without clear problem definition and not integrating workflows.
[01:50] The importance of aligning AI projects with business goals and involving the right people early is emphasized.
[02:49] Beth advises against using large consulting firms without AI expertise.
[03:19] She explains the need for selecting the right AI tools beyond ChatGPT.
[03:46] Breaking down problems into smaller components helps with AI efficiency.
[04:16] Beth shares her journey from data mining to building AI systems.
[05:09] A case study shows how AI increased EBITDA in a healthcare company.
[06:07] In the healthcare project, AI and machine learning were used to process medical records and improve clinical decision-making.[07:33] AI helped the company enter new markets and improve patient outcomes by identifying conditions that human review may have missed.
[07:57] Successful AI implementation begins by identifying workflows, engaging teams, and understanding investment needs.
[08:53] Gaining leadership and team trust is crucial for effective AI strategies.
[09:50] AI projects should align with broader business goals and focus on problem-solving.
[10:46] Speed to value can be achieved by using existing tools and internal resources.
[11:42] AI is advancing rapidly, becoming more accessible and cost-effective for businesses.
[13:07] Beth discusses how the acceleration of AI innovation is impacting private equity firms.
[14:06] Large language models (LLMs) and open-source technology are helping optimize AI for businesses.
[15:23] Private equity firms should involve AI experts during the diligence process to assess investments and create value.
[16:50] AI can transform not only new investments but also portfolio companies nearing exit.
[17:11] Beth recommends staying updated by talking to practitioners and following AI publications and podcasts.
[17:41] She shares her favorite podcasts, including Lex Friedman's and "AI on AI."
[18:37] You can reach Beth Pollack on LinkedIn for further discussions on AI and data strategy.
[19:07] Closing remarks from Alex.
You can connect with Beth Pollack on LinkedIn by visiting her profile here.To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected] -
In this episode of the Private Equity Podcast, host Alex Rawlings is joined by Paul Adams, an experienced CEO in the home and residential services sector. Paul shares his extensive experience in leading private equity-backed companies through multiple acquisitions and the challenges of navigating a highly fragmented industry. They dive into why private equity is increasingly focused on the residential services sector, what makes it such an attractive investment opportunity, and the importance of managing labor shortages in a people-driven business.
[00:00] Introduction of Paul Adams.[00:44] Paul’s background in HVAC, electrical, and plumbing services.
[01:38] Challenges private equity faces with mom-and-pop shops in home services.
[02:08] Importance of patience and strong M&A skills in home services.
[02:36] Balancing private equity's need for speed with the slower pace of acquisitions.
[03:33] The emotional side of selling a family legacy and employee concerns.
[03:59] How generational handovers can create trust issues during acquisitions.
[04:28] Building trust and relationships with founders during the process.
[04:57] Paul’s approach to working with contractors in residential services.
[05:26] The people-driven nature of service businesses and their focus on relationships.
[05:53] Addressing concerns of sellers about their employees and legacy post-sale.
[06:52] Challenges in attracting technicians despite the sector's essential nature.
[07:19] Impact of the labor shortage on growth in home services.
[08:19] Acquiring companies to meet demand and gain market share.
[09:18] Changes in the sector, including energy efficiency and government rebates.
[09:48] How government regulations are driving growth in system replacements.
[10:17] Increasing profitability through system replacements and upgrades.
[10:47] Private equity's interest in home services due to favorable cash flow.
[11:15] Low capital requirements and barriers to entry in home services.
[11:41] Challenges for small companies to scale due to limited technicians.
[12:09] Struggles of small businesses in growth because of labor shortages.
[12:35] Fragmentation and integration challenges in residential services.
[13:05] Costs of elevating unsophisticated businesses post-acquisition.
[14:04] Importance of proper systems to meet customer expectations.
[14:33] Paul’s strategy in buy-and-build and lessons learned from past experiences.
[14:57] Avoiding big announcements and press releases post-acquisition.
[15:29] Focusing on investment and continuity to maintain business stability.
[16:19] Benefits of working in the background for better performance.
[17:17] The power of consistency in building successful businesses.
[19:43] Paul’s passion for the residential services industry and M&A challenges.
[20:12] Alex’s closing remarks and a reminder to subscribe to the podcast.
You can connect with Paul Adams on LinkedIn by visiting his profile here.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome back to The Private Equity Podcast, by Raw Selection! In this episode, Alex Rawlings is joined by Richard Brekka, Managing Partner and Co-Founder of Second Alpha. Richard dives deep into the explosive growth of the secondaries market, explaining how his firm provides liquidity to shareholders of private tech companies. The pair discuss the rise of secondary funds, why more companies are staying private longer, and the unique opportunities in the market for smaller, profitable tech companies.
Breakdown:
[00:00] Introduction to Richard Brekka, Managing Partner and Co-Founder of Second Alpha.[00:12] Richard explains the secondary market's growth and why 90% of it is in unicorn companies.
[01:10] Richard’s background and how he got into secondary investing after working in venture capital.
[01:37] The common mistake of holding on to investments too long and the importance of realizing value sooner.
[02:05] Richard explains the two types of secondary markets: fund secondaries and direct secondaries.
[02:58] Growth in secondary funds driven by a lack of liquidity for GPs and the emergence of unicorn companies staying private longer.
[03:58] Richard shares why 90% of transactions in the secondary market are focused on unicorn companies.
[05:25] Discussion on the $2.3 trillion unicorn market and the trillion-dollar opportunity in companies valued between $100 million and $1 billion.
[06:21] How Second Alpha identifies companies for investment by targeting profitable, growing companies over $100 million in revenue.
[07:50] Second Alpha’s approach to providing liquidity to shareholders and building long-term relationships with CEOs.
[08:49] Richard discusses the various reasons shareholders seek liquidity, from personal financial needs to new business investments.
[10:12] The value Second Alpha provides to CEOs and how they become a trusted partner in helping companies toward their exit.
[11:00] Richard explains the challenges of accessing private companies for investment and how Second Alpha overcomes these obstacles.
[11:58] The importance of building trust with CEOs and navigating rights of first refusal in secondary deals.
[13:26] Second Alpha’s role as a helpful partner to the CEOs, offering introductions, advice, and exit planning support.
[14:53] Challenges private companies face after 10 years of growth, including management changes and adapting to market shifts.
[16:22] How companies must pivot and develop new products to continue growing and reach their next phase of success.
[17:20] Second Alpha’s focus on North American technology companies with strong revenue and profitability.
[18:46] The advantage of investing in growth-stage companies at a discount through secondary transactions.
[20:39] The role of artificial intelligence and cloud technologies in transforming industries and the efficiency opportunities they bring.
[22:32] Second Alpha’s focus on disrupting industries like data analytics and finding efficiencies in cloud infrastructure.
You can connect with Richard Brekka on LinkedIn by visiting his profile here.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected] -
In this episode of the Private Equity Podcast, host Alex Rawlings sits down with Chad Kalland, an experienced CEO in the industrial services sector with multiple private equity-backed exits under his belt. Chad shares his insights on navigating cultural changes, integrating acquisitions, and driving growth in a private equity-backed environment. He also dives into key lessons learned from his successful exits, how to keep teams engaged during times of rapid change, and the importance of choosing the right private equity partner.
[00:00] Introduction of Chad Kalland.[00:12] Importance of growing as a platform company with potential runway.
[00:41] Chad’s experience with private equity-backed exits and acquisitions.
[01:46] Mistakes private equity firms make by implementing changes too quickly.
[02:16] Understanding business strengths before making changes.
[02:43] Evaluating talent and their unique skills in an organization.
[03:12] Transitioning from founder-owned businesses to private equity-backed environments.
[03:42] Evaluating a company’s culture before acquisition to ease integration.
[04:11] Incorporating the acquired company’s strengths into the platform.
[04:39] Fostering a merger mindset instead of a takeover during acquisitions.
[05:08] Injecting private equity-backed speed into founder-owned businesses.
[05:38] Bringing acquired leadership into the fold to integrate with the platform.
[06:07] Key lessons learned in integrating companies, especially service lines.
[07:04] Missteps by not integrating acquired companies quickly enough.
[08:02] Adding service lines to increase market share.
[08:30] Ensuring smooth service line integration for long-term growth.
[09:28] Maintaining employee engagement during changes and new processes.
[09:57] Motivating technicians and engineers during transitions.
[10:27] Developing employees and offering leadership opportunities to improve retention.
[11:27] Strategies for retaining employees in a labor-intensive industry.
[11:53] Keeping new hires engaged and committed during the first 90 days.
[12:23] Onboarding and training to improve retention.
[12:52] Lessons from two successful private equity-backed exits.
[13:22] Adapting to private equity decision-making processes with new stakeholders.
[13:51] Finding the right private equity partner for growth.
[14:20] Evaluating private equity partners beyond the highest offer.
[14:49] Choosing between remaining a platform or joining a strategic acquirer.
[15:17] Benefits of staying on as the platform versus integrating into a larger organization.
[16:16] Focusing on high-margin services for profitability.
[17:15] Adding organic growth to acquired companies for value creation.
[18:09] Understanding employee motivation as a leader.
[19:35] Other leadership podcasts and books, like Simon Sinek’s work.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
You can connect with Chad Kalland on LinkedIn by visiting his profile here.
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome back to The Private Equity Podcast, by Raw Selection! In this episode, our host, Alex Rawlings is joined by Marc Jourlait, a seasoned Private Equity Operating Partner with extensive experience as a former CEO, leading multiple successful exits. Marc shares his unique insights into the role of the Operating Partner, the importance of driving value creation early in the investment cycle, and why private equity firms must act quickly in their hold period.
Breakdown:
[00:00] Introduction of Marc Jourlait.[01:36] Overview of Marc’s career journey, from Apple to private equity.
[02:03] Importance of acting quickly in the hold period to create value.
[03:00] Why replacing key personnel, like the CFO, is crucial early in the investment cycle.
[03:30] Causes of delay: risk management and decision-making dynamics in private equity.
[04:30] The importance of early involvement, even pre-close, to maximize value creation.
[04:59] Benefits of operating partners engaging with the management team before deal closure.
[05:49] How early engagement can lead to stronger value creation and faster exits.
[06:18] The operating partner model and its differences between the US and Europe.
[06:46] Riverside’s model of using former CEOs as generalist operating partners.
[07:37] Operating partners at Riverside: from acquisition to exit, staying engaged.
[08:05] Benefits of operating partners serving as board chairmen for governance and guidance.
[09:02] Shift in private equity from financial engineering to operational improvements.
[09:31] Importance of having a clear value creation roadmap from the start.
[10:01] The short five-year hold period in private equity requires fast action.
[11:00] European firms’ reluctance to invest in operating partners compared to the US.
[12:07] How value creation is now more focused on operational improvements over financial strategies.
[12:35] Key areas for value creation: pricing, operations, and cost management.
[13:04] How private equity firms create a clear story to maximize exit premiums.
[14:01] Discussion on employee ownership and its growing adoption in private equity.
[14:37] Riverside’s involvement with Ownership Works and its impact on employee ownership.
[15:07] How Ownership Works offers equity to all employees, driving engagement.
[16:12] Employee ownership as a catalyst for company success and value creation.
[17:57] Impact of employee ownership on engagement and business performance.
[20:14] Marc’s enthusiasm for the Ownership Works program and its positive transformation.
[22:13] Marc’s encouragement for more private equity firms to adopt employee ownership.
[22:41] Importance of employee ownership in driving engagement and maximizing value creation.
[24:04] Marc’s commitment to continuous learning and networking for professional growth.
[24:58] Marc invites listeners to connect with him on LinkedIn.
You can connect with Marc Jourlait on LinkedIn by visiting his profile here.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome back to The Private Equity Podcast by Raw Selection! Alex is joined by Drew Schardt, Vice Chairman and Global Head of Investment Strategy at Hamilton Lane. Drew brings over 17 years of experience at the firm, sharing valuable insights into the current state of private equity, how the market is evolving, and what’s in store for the rest of 2024. He dives into the importance of using data and technology to make informed investment decisions, and how Hamilton Lane is preparing for upcoming opportunities in sectors like healthcare, industrials, and private credit.
Breakdown:[00:00] Introduction to Drew Schardt, Vice Chairman and Global Head of Investment Strategy at Hamilton Lane.
[00:45] Overview of Drew’s role at Hamilton Lane and his background in private equity.
[02:09] Key mistake private equity firms make: not acting quickly enough on management changes.
[03:06] Importance of transparency and using real-time data for better investment decisions.
[04:32] Role of technology and data platforms in improving decision-making in private equity.
[05:59] Private equity's recovery after global downturns.
[06:42] Lower leverage levels compared to the global financial crisis.
[07:37] How private equity evolved with stronger financial resilience and broader acceptance.
[09:00] Soft landing vs. recession risks in the economic outlook.
[09:58] Emerging deal flow and closing the buyer-seller price gap.
[10:56] Impact of global monetary policy on deal-making.
[12:09] Stabilized purchase price multiples aiding deal flow.
[12:53] Increased exit activity and liquidity in private equity markets.
[13:51] Robust deal flow and exits expected in the second half of 2024.
[15:50] How interest rate policies influence pricing and deal-making.
[16:17] Stabilized purchase price multiples across industries.
[17:11] Historical trends showing Q4 as the busiest for deal activity.
[17:40] Managing investment risk through asset selection.
[18:39] Drew’s approach to portfolio diversification and risk management.
[19:43] Key sectors of interest for Hamilton Lane, including healthcare and industrials.
[20:39] Importance of having multiple levers in value creation strategies.
[21:50] Emerging opportunities in private credit, infrastructure, and secondaries.
[24:33] Focus on defensive sectors like healthcare and industrials.
[26:10] How Hamilton Lane is preparing to capitalize on market opportunities.
[31:27] Focus sectors for Hamilton Lane: clinical research, supply chains, and logistics.
[33:05] Supply chain automation as an investment area.
[34:17] Sector-specific investment strategies for Hamilton Lane.
[35:40] How technology is increasing transparency and attracting new investors.
[37:09] Drew’s reading recommendations: "Radical Candor" by Kim Scott and works by Malcolm Gladwell.
[40:00] Closing remarks from Alex.
You can connect with Drew Schardt on LinkedIn by visiting his profile here.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected] -
Welcome to The Private Equity Podcast, by Raw Selection! Today, we're joined by Kevin McShane, a seasoned Chief Revenue Officer turned Operating Partner, with a wealth of experience from multiple private equity-backed exits. In this episode, Kevin shares insights on his journey, the impact of AI on driving revenue and EBITDA, and his key learnings from successful exits in the technology sector. We'll also dive into the role of AI in private equity and discuss Kevin's transition from CRO to Operating Partner.
Breakdown:
[00:00] Kevin McShane's Introduction – Overview of Kevin’s career in tech, private equity, and his role as an operating partner.[00:10] Kevin discusses how AI can drive revenue and EBITDA growth.
[00:39] How portfolio companies are using AI for decision-making and growth.
[01:08] 25 years in tech, CRO roles, and his transition to an operating partner.
[03:05] Kevin highlights missed opportunities in private equity due to slow AI adoption.
[04:00] Examples of AI in sales, demand generation, and customer success.
[05:26] How AI implementation led to cost savings and pipeline growth.
[06:24] How AI can be cost-effectively integrated into existing CRM and marketing tools.
[09:42] Insights on recent stock price dips and tech sector trends.
[12:44] Kevin emphasizes the role of strong CFO and leadership relationships in successful exits.
[16:52] The importance of relationships and keeping ego in check for team success.
[19:44] Kevin’s advice on moving from CRO to an operating partner role.
[24:00] How Kevin builds trust and guides teams without direct authority as an operating partner.
[30:41] Collaboration with leadership to develop and own strategic initiatives.
You can connect with Kevin McShane on LinkedIn by visiting his profile here.To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome back to The Private Equity Podcast, by Raw Selection! In this episode, Alex Rawlings, speaks with Geoff Lurie, Managing Partner at Traub Capital Partners. Geoff brings decades of experience as an operator-turned-private equity investor. He shares his invaluable insights on how private equity firms and portfolio companies can collaborate more effectively for superior results.
Breakdown:
[00:00] Geoff Lurie, Managing Partner at Traub Capital Partners, is introduced as an operator-turned-PE investor.[00:25] Geoff emphasizes the need to focus on how price increases are perceived on the other side.
[00:55] Alex discusses the tough market conditions for private equity and hints at potential positive changes with increasing hiring and deal flow.
[02:18] Geoff explains the issue with PE firms assuming that entrepreneurs must suddenly change how they operate post-acquisition.
[02:47] Managing expectations and helping entrepreneurs report to the PE firm without losing their edge.
[03:42] Entrepreneurs struggle to adjust to reporting to external investors after being self-reliant.
[05:07] The importance of the first 100 days after an acquisition, setting up reporting structures and management.
[06:26] The crucial role of the CFO in portfolio companies, and why PE firms often replace them after acquisition.
[08:19] Geoff discusses how changing consumer sentiment impacts the success of private equity-backed companies.
[11:01] Differences between financial modeling and the practical steps needed to increase margins in portfolio companies.
[13:17] The importance of understanding real-world difficulties in implementing changes in portfolio companies.
[14:28] Alex asks how young private equity professionals can gain operational understanding without becoming CEOs.
[16:26] Alex plugs Raw Selection’s services, explaining the firm’s focus on executive searches for private equity-backed businesses.
[17:24] Geoff discusses the importance of managing debt properly and avoiding over-leverage in portfolio companies.
[18:23] Avoiding the mistake of using short-term working capital loans for long-term growth.
[19:42] Geoff explains how private equity firms motivate middle management by offering equity incentives.
[21:04] The importance of instilling an “enterprise, team, individual” mindset in portfolio companies.
[24:20] Geoff shares a personal anecdote about overhearing a young woman discussing her desire for a high-paying job without office work.
[26:20] Geoff talks about his transition from operator to private equity investor and why he made the switch.
[29:43] The best time to sell a portfolio company is on the way up, not at the top.
[31:10] Geoff explains the importance of setting up the right structure to allow CEOs to focus on future growth, not just day-to-day operations.
[32:34] Geoff shares that his passion stems from mentoring young professionals and imparting knowledge.
You can connect with Geoff Lurie on LinkedIn by visiting his profile here.
To be added to the book waitlist, you can email [email protected]Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome back to the Raw Selection Private Equity Podcast! In this episode of our Playbook series, we're thrilled to have Ted Clark return. Ted, a seasoned chief executive now making waves as a private equity investor with Iron Path Capital, shares invaluable insights into the art of deal origination. Having previously discussed growing enterprise value from $30 million to $1.4 billion, Ted now dives into the strategies that set Iron Path Capital apart in the competitive landscape of private equity. This session is packed with actionable advice for anyone looking to enhance their deal-making prowess. So, let's jump right into another insightful discussion with Ted Clark.
Breakdown:
[00:00] Introduction of Ted Clark, highlighting his transition from chief executive to private equity investor, focusing on deal origination strategies.[01:11] Overview of specialization trends in private equity and their advantages in deal origination.
[02:32] The intersection of specialty chemicals and life sciences in private equity investments.
[04:00] Importance of having a clear vision and foundational strategy for where to invest.
[05:00] Strategies used by Iron Path Capital to originate deals, emphasizing the importance of a solid investment thesis.
[07:26] Leveraging professional networks to gain insights and access potential investment opportunities.
[10:00] How Iron Path Capital uses a systematic approach to deal origination to maximize effectiveness.
[13:14] Ted Clark explains the benefits of having an operational background in enhancing credibility and understanding in deal negotiations.
[18:00] Discussion on the synergy between operational experience and private equity investment strategies.
[20:21] Ted Clark shares strategies for effectively leveraging his experience to enhance deal origination and execution.
[25:22] Insights into building and maintaining relationships with investment bankers to enhance deal flow.
[27:15] Closing remarks and ways to contact Ted Clark for further discussion or collaboration.
You can connect with Ted Clark on LinkedIn by visiting his profile here.To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode titled host, Alex Rawlings, dives into the insights and strategies of a seasoned executive known for his leadership in multiple private equity-backed exits. Jeffrey Stark discusses his career trajectory, highlighting his transition from corporate America to becoming a pivotal figure in private equity spaces, steering companies through significant growth and successful exits.
Breakdown:
[00:00] Jeffrey Stark discusses his success with multiple private equity exits.
[00:11] He highlights his collaborative leadership approach, emphasizing guidance without micromanagement.
[00:40] Stark recounts his transition from corporate roles to significant positions in private equity.
[01:09] Focuses on challenges and strategies for leading companies to successful private equity exits.
[01:37] Insights into his proactive career approach in the private equity sector.
[02:33] The value of independent board members in providing unbiased support and expertise.
[03:46] Benefits of experienced board members for guidance in unfamiliar business areas.
[04:44] Operational focus on lean manufacturing and quality improvements.
[06:09] Discusses the transition from CEO to advisor roles, and the dynamics involved.
[07:33] Tactics for building trust with CEOs and preparing them for board meetings.
[09:01] How he has guided marketing strategies through CEOs, fostering a partnership approach.
[10:17] Stark shares experiences on cultural and operational challenges in mergers and acquisitions.
[12:49] The importance of transparent communication during transitions.
[14:05] Financial strategies and accountability in managing private equity-backed companies.
[15:20] Leadership development within teams to foster a culture of innovation.
[18:14] Insights into global economic factors influencing private equity.
[19:05] Ethical considerations and corporate governance in the sector.
[20:21] Predictions on the evolving landscape of private equity and the role of technology.
[21:40] Advice for aspiring private equity professionals based on extensive experience.
[22:58] A case study of a successful exit, detailing strategic decisions involved.
[24:15] Discussions on work-life balance and managing stress in leadership roles.
[25:30] The role of mentoring and support systems in his career.
[26:45] Innovation in maintaining business competitiveness.
[28:00] His involvement in philanthropy and corporate social responsibility.
[29:15] Strategies for managing international business and cross-cultural teams.
[30:30] Thoughts on leadership succession planning.
[31:45] Personal and professional development influences.
[33:00] Future plans and continued impact on the industry.
[34:15] Invitation to connect for further insights and collaboration opportunities.
[35:30] Closing remarks.
You can connect with Jeffrey Stark on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast by Raw Selection! In this episode, our host, Alex Rawlings, is joined by Jordan Burton, co-founder of Talgo. Together, they delve into the intricacies of talent interviewing and assessment within the private equity sector. Jordan brings a wealth of knowledge from his transition from a potential private equity investor to an expert in executive talent assessment. This discussion promises to enlighten those interested in optimizing their hiring processes and understanding the common pitfalls and best practices in recruiting top-tier executives.
[00:00] Introduction to Jordan Burton, specializing in talent interviewing and assessment.[00:16] Discussion on timely decision-making in human capital issues.
[00:44] Jordan shares his career transition to executive talent assessment.
[01:12] Insights into Jordan’s career evolution and the founding of Talgo.
[02:11] Importance of proper interviewing techniques in talent acquisition.
[03:07] Indicators of when to act on personnel changes.
[04:06] Consequences of being overly accommodating in personnel decisions.
[05:02] Deep dive into interviewing and hiring processes.
[06:01] Setting clear expectations and metrics for new executives.
[08:22] Characteristics of effective private equity executives.
[10:19] Traits that define a top executive in private equity.
[12:15] Importance of quantitative skills in executives.
[13:13] Techniques used in interviewing executives about their past experiences.
[15:05] Importance of detailed discussions about past roles and achievements.
[18:27] Systematic assessment in identifying leadership qualities.
[20:26] Nuances of executive onboarding and performance tracking.
[22:10] Organizational dynamics and internal politics in hiring.
[24:06] Future trends in executive hiring, including technology impacts.
[26:01] Importance of adaptability and continuous learning in talent acquisition.
[28:26] Final thoughts on the evolution of the talent acquisition field.
[30:52] Methodologies for developing leadership pipelines in portfolio companies.
[33:18] Common pitfalls in the executive search process and avoidance strategies.
[35:44] Role of diversity and inclusion in executive hiring.
[38:09] Jordan reflects on the mentors who shaped his career.
[40:33] Tips for building a career in talent management within private equity.
[42:57] Advice for maintaining a competitive edge through strategic talent management.
[44:31] Closing remarks by Alex, encouraging listener engagement and subscription.
You can connect with Jordan Burton on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode, we explore the nuances of building and scaling businesses within the private equity realm. Alex excited to welcome back Brendan Anderson, Managing Partner of ScaleCo Capital.
[00:00] Brendan emphasizes the importance of having the right people and vision for successful business ventures.[00:11] Discussion on enhancing value through strategic customer engagement and supplier relations.
[00:21] Insight into the shift from gut feeling to data-driven decision-making in business strategies.
[00:50] How ScaleCo Capital scales smaller businesses often overlooked by larger firms.
[01:20] Focus on B2B service providers and manufacturers that require scalability.
[02:18] Initial challenges in acquiring and transforming small-cap companies.
[03:16] The significance of entrepreneurs stepping back from central operations to improve scalability and attractiveness.
[05:35] Exploration of the Entrepreneurial Operating System (EOS) for aligning management teams.
[06:56] Importance of team alignment in realizing business visions through EOS.
[08:16] Breakdown of ScaleCo's five pillars of business transformation.
[11:02] Integration of technology in customer and supplier engagement.
[12:53] Mention of ScaleCo's partnership with Grata, highlighting data-driven processes.
[15:17] Challenges and strategies in building effective sales teams.
[19:25] Impact of robust financial reporting on business strategy.
[20:49] Essential financial metrics and practices for new acquisitions.
[21:19] Brendan discusses the importance of accessing real-time financial data to drive strategic decisions.
[22:41] How deep insights into financial data can reveal new growth avenues within existing customer bases.
[24:06] Strategies for empowering leadership teams to take initiative and drive growth independently.
[25:24] Plans for integrating operational changes within 18 to 36 months to ensure sustainable growth.
[26:16] Challenges of effectively managing and growing businesses and how private equity provides crucial support.
[27:13] The necessity of continuous self-development and adaptation for businesses to evolve.
[28:11] The strategic focus on local investments to enhance relationship building and operational oversight.
[29:04] Geographic focus and its impact on investment success rates and operational effectiveness.
[30:01] The importance of local networks and relationships in managing and supporting businesses effectively.
[31:27] Brendan offers contact information for those interested in connecting or learning more about ScaleCo Capital.
[32:17] Discussion on building networks between talented individuals and promising businesses to foster growth and operational excellence in the private equity space.
[32:46] Closing remarks by Alex, thanking Brendan for his insights and inviting listeners to subscribe for more private equity discussions
You can connect with Brendan Anderson on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode, Alex Rawlings welcomes back Brad Nathan, a seasoned private equity firm founder, to dive into the intricacies of starting and managing a PE firm. Brad shares first-hand experiences, detailing the triumphs and tribulations he's encountered and offering a comprehensive guide for navigating the competitive private equity landscape.
Episode Timestamps:
[00:00] Introduction of today’s topic and guest, Brad Nathan.[01:15] Exploration of Brad’s early career and the motivations behind starting his private equity firm.
[03:30] Challenges faced during the initial setup of the firm, including capital raising and team assembly.[06:45] Strategies Brad implemented to overcome initial failures and secure the firm’s first successful deals.
[10:20] Key decisions and strategies that fueled the firm’s growth and expansion.
[13:50] Insights into the recruitment, culture building, and leadership styles vital for a successful PE firm.
[18:30] Stories of the highest highs and lowest lows in managing the firm.
[22:10] The most valuable lessons learned throughout Brad’s career and advice to aspiring private equity firm founders.
[25:40] Predictions on emerging trends and the evolution of the private equity industry.
[29:00] Listener Q&A session with Brad on specific challenges and advice on various scenarios in private equity.
[33:15] Summary of key insights shared by Brad and closing remarks.
You can connect with Brad Nathan on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode, we dive into the intricate dynamics of managing relationships between CEOs and private equity firms with our guest, Matt Sharrers, founder of ETJ Advisory. Matt shares his extensive experience and insights on how executives can effectively navigate the transition into private equity-backed roles, focusing on the critical aspects of cultural change, value creation, and team management.
[00:00] Welcome back to the Private Equity Podcast by Raw Selection.
[00:59] Matt Sharrers discusses his background and current role at ETJ Advisory, including his past experiences with SBI and his diverse career path.
[01:28] Common errors by private equity firms and portfolio companies. Matt highlights the importance of understanding cultural impacts during CEO succession and aligning with private equity goals.
[01:57] Matt's book “The Second CEO” and its focus on helping new CEOs navigate the challenges of taking over from a founder and creating value.
[02:25] Advice on managing cultural shifts from a founder-led organization to a private equity-backed company.
[03:20] Strategies for defining and implementing new company culture effectively, including the role of top executives and culture champions.
[05:10] The importance of defining and communicating company culture and values. How to make culture an active mechanism in hiring, performance reviews, and onboarding.
[07:01] The role of the CEO in driving cultural change and the mistakes to avoid, such as deferring too much to private equity firms.
[09:56] Involving different levels of the organization in shaping culture and creating buy-in across the board.
[11:08] Challenges faced by first-time private equity-backed executives and the importance of understanding private equity models and support.
[13:08] Advice on balancing the information advantage of running the business with the guidance and input from private equity partners.
[15:34] Insights on how to approach value creation, with a focus on sustainable growth and the importance of a strong team.
[18:00] The necessity of adapting team composition as the company scales and evolves, including the need for new talent at different milestones.
[19:26] Advice on evaluating and developing talent within the organization to align with growth and value creation goals.
[23:20] When to make decisions about team changes and the importance of having the right team in place by mid-year two.
[24:20] Matt shares his reading and listening preferences, including books by Arthur Brooks, gratitude journaling, meditation, and sports interests.
[25:46] Alex thanks Matt for the insightful discussion on transitioning from founder-led to private equity-backed leadership.
You can connect with Matt Sharrers on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. - Laat meer zien
