The Private Equity Podcast

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings talks with Javar Avery, President at Sun and Moon Capital. They delve into micro-cap investing's potential and the essential role of operational playbooks. Avery discusses the rationale behind focusing on smaller, often overlooked companies, detailing the importance of detailed due diligence and strategic deal-making. He highlights overcoming key risks, like key man risk, and maintaining owner engagement for success. The episode also touches on Avery's influences and reading recommendations, offering insights into effective strategies for micro-cap investment growth. Breakdown: [00:00] Javar Avery discusses the potential of investing in micro-cap companies and wonders why larger firms aren't more active in this space. [00:15] The focus is on market competition, management, and team evaluation, introducing governance playbooks for strategic guidance. [00:37] Introduction to Javar Avery and Sun and Moon Capital's focus on microcap investing, targeting companies with $1 million to $2 million of EBITDA. [01:07] Exploring the opportunities and challenges in microcap investing, and Avery's emphasis on the use of playbooks for business implementation. [01:37] Avery provides a brief overview of his background, his role at Sun and Moon Capital, and his personal life. [02:59] Discussion on common mistakes in Private Equity and the necessity for having a clear rationale and strategy for deals. [03:26] Avery shares an experience with a deal that lacked rationale and emphasizes the importance of having a structured due diligence process. [04:47] The significance of playbooks in overcoming integration challenges and maintaining structured operations post-acquisition. [06:35] Avery discusses his interest in micro-cap investing, influenced by recognizing the potential value and challenges in smaller businesses. [08:30] Reasons behind choosing micro-cap investing include less competition, potential for significant value addition, and the unique challenges of smaller businesses. [12:46] Details on Sun and Moon Capital's due diligence process, tailored to their investment rationale and focused on commercial, financial, and management evaluations. [15:12] The ECE strategy used by Sun and Moon Capital to provide operational support without running the companies directly. [17:06] Key risk factors in micro-cap investing, such as key man risk and concentration risks, and strategies to mitigate these risks including retaining skin in the game for owners. [19:34] Avery shares his reading interests, emphasizing autobiographies, business insights from books like "Moneyball," and his passion for learning outside his expertise. [23:32] Recommendations for books and influences, highlighting the importance of different perspectives and personal development. [28:14] Contact information for Javar Avery and an invitation for listeners interested in learning more or seeking investment opportunities to reach out. [29:10] Closing remarks, thanking Javar Avery for his insights into micro-cap investing and the critical role of operational playbooks. You can connect with Javar Avery on LinkedIn by visiting his LinkedIn Page. 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 alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings talks with James Mackey, the Managing Director of Climate Investment. They discuss the advantages of a focused investment strategy for boosting deal flow and addressing the climate crisis. James highlights the importance of precise investment criteria in attracting impactful projects, especially in hard-to-abate sectors like heavy industry and transportation. He stresses the need for realistic assessments and data-driven decisions to scale investments effectively. The conversation offers key insights for investors aiming to contribute significantly to environmental sustainability through disciplined investment approaches. Breakdown: [00:00] James Mackey discusses deal flow and the selective nature of investments under Climate Investment's focused mandate. [00:17] Highlighting how specific criteria and investment goals can increase deal flow, contrary to the belief it might limit opportunities. [00:43] Shifting to the role of private equity and venture capital in addressing climate change through strategic investments in critical sectors. [01:13] Introduction to James Mackey and his role at Climate Investment [02:12] Mackey outlines his background and Climate Investment's mission for strategic decarbonization investments. [03:07] Detailing Climate Investment's focus on sectors with high carbon footprints and the challenges in attracting necessary capital. [04:07] Emphasizing the scale of impact and the targeted carbon reduction goals of their investments. [05:05] Discussing the Oil and Gas Climate Initiative's evolution and its broader mission beyond the oil and gas sector. [06:02] Exploring the engagement model with LPs and the success of pilot programs and commercial orders for portfolio companies. [06:54] Addressing common mistakes in underestimating execution challenges and the importance of realistic goals. [08:19] The necessity of data-driven approaches and asking critical questions to evaluate investment potential. [09:18] Highlighting the importance of being data-driven in understanding the potential for disruption. [12:08] The challenges in finding investments with significant carbon impact and the stringent selection criteria. [14:33] Example of evaluating a plastics recycling business and its difficulty in meeting carbon impact requirements. [16:28] Discussing Climate Investment's strict investment model, driven by clear focus and robust deal flow. [19:24] On the current capital flow towards climate improvement and the need for more targeted investment in neglected sectors. [22:20] Highlighting the mismatch between capital flow and emission sources, stressing the need for catalytic capital in emerging sectors. [25:13] Discussing investment horizons, compensation models, and incentives for directing capital towards impactful solutions. [26:11] Mackey shares his approach to staying informed through diverse news sources and listening to inspirational podcasts. [28:04] Providing contact information for James Mackey for investment proposals or inquiries. You can connect with James Mackey on LinkedIn by visiting his LinkedIn Page. 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 alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings chats with Reuben Munger of Vision Ridge Partners about the intersection of Private Equity and sustainable investments, focusing on the electric transportation revolution. Munger, a pioneer in sustainable real assets, shares insights into transitioning from hedge funds to Private Equity with a sustainability lens, and the impact of electric vehicles and infrastructure on the environment and investment returns. Dive into this engaging discussion on how Vision Ridge Partners is leading the charge in sustainable investments, shaping a greener future through strategic, impactful projects. Breakdown: [00:00] Definition and focus on Vision Ridge Partners’ approach to investing in sustainable real assets. [00:15] Discussion on building and owning charging systems, operating electric fleets, and the firm's role in sustainable investing. [00:43] Insight into the focus on vehicle electrification, niche specialization in private equity, and the broad appeal of narrowing focus. [01:09] Munger shares his journey from the hedge fund industry to private equity focusing on sustainability, managing over $3 billion across various sectors. [01:39] Munger discusses the motivation behind the shift and the value of active ownership and sector-specific knowledge in private equity. [03:02] Discussion on the need for infrastructure and real assets to become more sustainable, focusing on efficiency and lower resource intensity. [04:29] Vision Ridge’s approach to investing in assets with a sustainable edge and the transition from "gray to green." [06:40] How sustainability shapes Vision Ridge's investment strategy and decision-making process. [07:39] Differences in sustainability mindsets between Europe and North America and how it affects investment strategies. [10:05] Discussing unexpected opportunities and challenges in portfolio companies, emphasizing agility and innovation. [11:55] How Vision Ridge’s focused approach has benefited the firm in terms of differentiation, expertise, and deal flow. [16:18] Discussion on electrification in the transportation sector, including commercial vehicles and the impact on sustainability. [21:38] Alex Rawlings mentions Raw Selection's role in private equity executive search and salary surveys. [22:08] Insights into the transition towards electric ferries and the challenges of electrifying longer maritime routes. [23:59] Exploration of competition and collaboration in the electrification of commercial vehicles. [25:55] Munger shares his recommendations for podcasts, books, and resources that inspire him in the field of sustainable investing. [28:51] Closing remarks and how to contact Reuben Munger for further discussion on sustainable real assets and electrification. You can connect with Reuben Munger on LinkedIn by visiting his LinkedIn Page. 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 alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this episode, we delve into the world of ESG in infrastructure investment with Gwen Colin, ESG Director at Vauban Infrastructure Partners. Gwen shares insights on the differences between ESG practices in the US and Europe, the challenges of implementing ESG strategies, and the impact of long-term investment on sustainable growth. Discover actionable ESG strategies, learn from Gwen's journey, and explore how to integrate sustainability into your investment approach. Join us for a deep dive into making ESG a pivotal part of your business strategy. Breakdown: [00:00] Introduction to Gwen Colin and the focus on ESG within infrastructure across the US and Europe. [01:04] Gwen shares her background, emphasizing her shift from legal advisor to leading ESG initiatives. [02:04] Discussion on common ESG implementation mistakes and the importance of a long-term perspective in asset management. [04:24] Insights into the governance differences between the US and Europe in ESG practices. [08:39] The rationale behind Vauban's long-term investment strategy and its impact on ESG. [14:24] Successful ESG strategies in portfolio companies, focusing on decarbonization and community impact. [19:58] Gwen's personal influences, recommending "What We Owe Each Other" by Minouche Shafik for broader learning. [22:21] Closing thoughts on the importance of ESG in infrastructure and a thank you to listeners for their continued support. You can connect with Gwen Colin on LinkedIn by visiting her LinkedIn Page. 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 alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this episode we dive into the world of ESG with Cornelia Gomez, Global Head of ESG and Sustainability at General Atlantic. Cornelia brings a wealth of experience, sharing how to seamlessly integrate ESG into Private Equity, enhance business growth, and navigate sustainability challenges. Discover actionable ESG strategies that drive value and prepare companies for a sustainable future. Breakdown: [00:00] Introduction to Cornelia Gomez's background and role at General Atlantic. [00:33] The conversation focuses on the unique challenges of implementing ESG strategies in growth equity firms compared to later-stage companies, emphasizing the importance of tailored approaches for hyper-growth companies. [01:30] Cornelia shares her personal and professional background, underscoring her dedication to leveraging business as a force for addressing global challenges such as modern slavery, rising inequalities, and climate change. [02:25] Insights into Cornelia's career journey, from working on supply chain sustainability in Asia to leading ESG initiatives in the Private Equity sector. [03:55] Discussion on common mistakes made by Private Equity firms and portfolio companies in ESG, particularly the neglect of governance aspects, and strategies to enhance governance practices. [05:22] Cornelia addresses the need for comprehensive governance in ESG initiatives, including board governance quality and oversight on sustainability risks and opportunities. [06:42] Highlighting the gap between executive teams and boards in terms of ESG awareness and training, suggesting a need for more direct communication and education on ESG issues at the board level. [09:52] The conversation shifts to strategies for effectively communicating ESG principles within companies, emphasizing the importance of aligning ESG discussions with executive interests and operational realities. [11:33] Cornelia discusses her learning curve at General Atlantic, the importance of scalable ESG initiatives, and the focus on data-driven approaches to engage portfolio companies in meaningful ESG actions. [18:45] Insights into how General Atlantic integrates ESG considerations throughout the investment lifecycle, from due diligence to exit strategies. [21:22] The strategy of using ESG playbooks and targeted engagement based on company clusters to address specific ESG challenges and opportunities within the portfolio. [24:08] Cornelia shares examples of successful ESG engagements and the importance of coordinated efforts among PE firms, portfolio companies, and co-investors to achieve sustainability goals. [30:45] Discussion on the concept of "gold standard" in ESG implementation, highlighting the need for actionable plans, robust governance, and continuous monitoring of ESG initiatives. [38:02] Cornelia offers personal recommendations for podcasts, music, and activities that inspire her, along with the value she finds in mentoring and interacting with the next generation of leaders. [41:54] The episode concludes with advice on reaching out to Cornelia for further discussion on ESG and other topics. You can connect with Cornelia Gomez on LinkedIn by visiting her LinkedIn Page. 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 alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! This episode provides valuable insights into the mindset and strategies of a successful entrepreneur who has founded and managed multiple businesses. Allan Draper's experiences offer lessons on leadership, the importance of delegation, and the value of aligning with passionate individuals, all crucial for Private Equity investors and portfolio executives aiming for growth and success. Breakdown: [00:00] Introduction to Allan Draper's business portfolio, highlighting his principle of delegation and efficiency. [00:28] Alex Rawlings explains the value Allan brings to the podcast, focusing on insights for PE investors and C-suite executives from a founder outside the PE space. [01:52] Allan provides an overview of his entrepreneurial journey, emphasizing his role in assisting others to build their businesses and wealth. [02:50 Discussion on the challenges and motivations behind starting and running multiple businesses, particularly the love for the startup phase. [03:50] Allan shares his strategy for business growth, focusing on finding passionate people to run the businesses, enabling him to continue creating new ventures. [05:19] The importance of hiring the right people and the difficulty in letting go of control. [06:17] Allan advocates for the principle that 80% done by someone else is better than 100% done by oneself. [08:12] Challenges in hiring executives and Allan's approach to identifying leaders who share his vision and passion. [10:30] Advice for executives on leadership, highlighting transparency, vulnerability, and the importance of taking care of employees. [11:27] Allan's insights on igniting passion and drive within an organization, emphasizing accountability, autonomy, and recognition. [14:18] Allan recounts the journey of scaling Proof Pest Control, from its challenges to achieving significant growth. [17:12] Discussion on the role of acquisitions in scaling the business and the strategic choice between organic growth and acquisitions. [18:39] Building a strong brand and the importance of consistency and faith in business success. [20:34] Allan addresses the biggest challenges faced, including business partnerships and hiring the right personnel. [22:59] Allan's perspective on motivations at work. [27:20] Advice for chief executives on how to exude passion and engage like a business founder. [29:48] Allan shares insights on engaging with PE firms and the importance of personalized and informed approaches. [32:13] The effective strategy forPE firms when approaching potential acquisitions, focusing on understanding and aligning with the seller's vision. [35:58] The significance of ensuring continuity of service and customer care in acquisitions. [37:26] Allan recommends influential books and resources for entrepreneurs and business leaders, including his own content platforms. [39:22] Closing remarks, with Allan extending an offer for free consultations with entrepreneurs and expressing his passion for business mentorship. You can connect with Allan Draper on LinkedIn by visiting his LinkedIn Page: Allan Draper LinkedIn 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 alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this episode, Alex Rawlings has an insightful conversation with Maria Pacella, Managing Partner of Pender Ventures. Maria tells us about the critical mistakes made by investors in Private Equity and Venture Capital, the essence of investor discipline, and valuable learnings from her extensive experience in the investment world. Breakdown: [00:00] Introduction to the episode's theme on investor discipline and key mistakes made by investors. [00:51] Maria Pacella's introduction and background, detailing her journey from growing up on Vancouver Island to becoming a managing partner at Pender Ventures.[01:47] Maria discusses her career path from investment banking to venture capital, emphasizing her focus on technology businesses and her role in founding Pender Ventures. [02:45] Discussion on common mistakes by private equity firms and venture capitals, focusing on the lack of discipline in investment decisions. [03:41] Maria elaborates on how lack of discipline can impact fund and portfolio returns, including getting caught up in tech trends and issues with portfolio construction. [04:41] Insight into maintaining discipline in investment decisions, including starting with a strong investment thesis and framework. [05:40] The importance of a team with diverse backgrounds for challenging decisions and maintaining discipline. [06:34] Mistakes observed on the portfolio side, particularly poor capital allocation during the high fundraising period of 2020-2021. [07:23] The consequences of poor capital allocation, including high expectations for business growth and the current challenges faced by startups. [08:22] Mention of Grata partnership and its role in improving proprietary deal flow and data access. [09:22] Differences in investment evaluation between private equity and venture capital, focusing on unit economics and strategic multiples. [10:17] Maria shares insights on identifying revolutionary technologies and markets, and the importance of future-looking scenarios in investment decisions. [11:46] Attributes of successful portfolios, including founders' unfair knowledge and strategic capital allocation. [13:16] Maria reflects on her 23 years of investing experience, highlighting lessons learned and the importance of looking for outliers. [15:40] Discussion on humility, open-mindedness, and the necessity to challenge conventional patterns to find winning investments. [17:07] Maria talks about the discipline required in investment, different backgrounds of successful VCs, and the significance of understanding tech trends. [19:30] Attributes that make a good investor, including discipline, judgment of character, and humility. [21:53] Balancing involvement and support in portfolio companies, emphasizing the role of individual relationships and guidance. [24:15] Maria's influences and recommendations, including the Buffett Munger School of Investing and listening to various podcasts. [26:03] Closing remarks, thanking Maria for her insights, and a reminder to listeners to subscribe to the podcast. To connect with Maria Pacella, you can visit her LinkedIn page. 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 alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this insightful episode, host Alex Rawlings engages with Gregory Shepard, a distinguished entrepreneur, co-founder of BOSS Capital Partners, and a Forbes Books author. Shepard shares his remarkable journey from humble beginnings, growing up in a tent and facing challenges due to his neuro divergences, to becoming a serial entrepreneur with 14 liquidity events and multiple awards under his belt. Breakdown: [00:03] Gregory Shepard's Background: Gregory opens up about his challenging upbringing, living in a tent while building their house, and dealing with autism, dyslexia, synesthesia, and savant syndrome. Despite these obstacles, he went on to build and sell 12 companies, winning four Private Equity awards for transactions between $250 million and a billion. [02:05] Entrepreneurial Journey and Achievements: Gregory discusses his role in significant transactions, including the consolidation of eBay enterprise companies, and his efforts to promote diversity in politics. He also highlights his work on Startup Science, a platform based on his research on why start-ups fail, and his upcoming book, "The Startup Lifecycle." [03:32] Investment Philosophy and Private Equity Insights: Gregory shares his unique perspective on investment, emphasizing the importance of understanding both the founder's and the investor's viewpoints. He discusses common mistakes he sees in Private Equity, such as overvaluation and the failure to focus on real business fundamentals. [09:47] BOSS Operating Support System: Shepard explains how his proprietary system and the StartupScience.io platform help educate founders and investors, improving the success rate of start-ups and investment returns. [19:43] Dealing with Neurodivergence: Shepard speaks candidly about the challenges and advantages of his neurodivergence. He views his condition not as a hindrance but as a set of superpowers that have enabled him to see the world differently and achieve success. [27:25] Altruistic Capitalism: Shepard introduces the concept of using capitalism for altruistic outcomes, such as environmental sustainability and inclusion, highlighting the potential for significant impact and profit. [36:18] Closing: Contact information for Gregory and an invitation to engage further with the discussed topics. To connect with Gregory Shepard, you can visit his LinkedIn Page: Gregory Shepard on LinkedIn. 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 alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this episode, we discuss ESG strategies with Jennifer Wilson, CEO of Re:Co. We delve into how ESG transcends compliance, becoming a catalyst for innovation, risk management, and increased profitability. Our conversation addresses the critical issue of greenwashing and regulatory scrutiny, underscoring the importance of aligning company values with genuine ESG initiatives. We explore the integral role of ESG in the Private Equity cycle, showcasing success stories where ESG integration has led to operational excellence and customer satisfaction. This episode is not just a talk but a practical guide for embedding sustainable practices into the fabric of business, ensuring not only adherence to ethical standards but also securing a competitive edge in the evolving market landscape. Join us for a blueprint for successful, sustainable investing. Breakdown: [00:03] ESG Integration: Jennifer Wilson of Re:Co outlines how ESG contributes to value creation through five key areas: solving global problems, generating profit, reducing risks, lowering capital costs, and boosting employee engagement. [00:31] ESG Success Factors: Jennifer highlights the significance of fully integrating ESG across portfolio companies without divulging specifics. [00:46] Background: Introduction to Jennifer Wilson, her journey before Re:Co, including her roles in finance, strategy, and sustainability. [01:52] Common ESG Mistakes: The major pitfall of viewing ESG merely as a compliance checklist and the importance of strategic integration. [03:38] Value Creation: Discussion on embedding ESG into the core of value creation processes. [08:25] ESG Evolution: Tracing the shift of ESG from an ancillary concern to a central strategy in private equity, particularly in Europe. [12:12] ESG Metrics Challenges: Addressing the complexity of standardizing ESG metrics and the shift towards more mature sustainability reporting. [17:04] Profit vs. Sustainability: Strategies for balancing profitability with ESG objectives. [18:31] Implementing ESG Strategies: Starting points for firms aiming to introduce or enhance ESG strategies. [22:14] ESG as a Differentiator: How ESG distinguishes firms in the competitive landscape. [30:51] Success Stories: Sharing impactful ESG initiatives and their benefits without specific details. [36:37] Data-Driven Processes: Mention of the partnership with Grata highlighting the role of data in private equity. [38:15] ESG's Future: Predictions on ESG's growing role and its potential for firms committed to sustainable strategies. [50:51] Learning Resources: Recommendations for deepening ESG knowledge, including the Financial Times' Moral Money newsletter and book compilations from The Future In Sound podcast. [53:34] Closing: Contact information for Jennifer and an invitation to engage further with the discussed topics. To connect with Jennifer Wilson, you can visit her LinkedIn Page. 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 alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! This episode dives into the transformative world of employee ownership, focusing on the Employee Stock Ownership Plan and how it can drive employee engagement and productivity. Guest Daniel Goldstein, former CEO of Folience and an advocate for employee ownership, shares insights into integrating ESOP within a private equity model, fostering workplace culture, and exploring partial ownership benefits. Breakdown: [00:00] Introduction: Welcome to the podcast and introduction of Daniel Goldstein. [00:21] Exploring Employee Ownership: Discussion on the benefits of workplace culture improvement and the contrast between U.S. ESOPs and UK EOTs. [01:13] Daniel Goldstein's Background: Overview of Goldstein's career and his approach to employee ownership within the Private Equity model. [02:08] Employee Ownership as a Continuum: Insights into the relationship between family-owned businesses, employee-owned businesses, and Private Equity. [03:33] Advantages of Employee Ownership: Benefits of aligning employee interests with company success. [04:32] Folience's Unique Model: How Folience operates with a fully employee-owned Private Equity model. [05:55] Growth and Diversification Strategy: The strategy behind acquiring businesses and integrating them into the Folience portfolio. [07:50] Tax Efficiency and Ownership Structures: The tax benefits and strategic advantages of employee ownership models. [08:49] Decision Making in an ESOP: Governance and decision-making within an ESOP structure. [11:10] Shared Ownership and Transparency: The role of shared ownership in fostering workplace transparency and collaboration. [13:29] Employee Engagement Without Full Ownership: Strategies to improve engagement without full employee ownership. [14:27] Liquidity Events and Portfolio Company Sales: Effects on employee owners during liquidity events and sales. [18:18] Implementing Partial Employee Ownership: The potential benefits of partial employee ownership. [24:28] The Power of Incentivization: How financial incentives can drive employee productivity. [32:29] The Silver Tsunami: Challenges and opportunities in the generational transfer of wealth and business ownership. [37:16] Contacting Daniel Goldstein: Information for reaching out to Daniel for more discussion on employee ownership. [38:59] Episode Conclusion: Summary and thanks to Daniel Goldstein, with a reminder on how to reach Raw Selection for hiring support. To connect with Daniel Goldstein, you can visit his LinkedIn profile. 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 alex.rawlings@raw-selection.com.

Introducing Josh Koplewicz Josh Koplewicz is the founder and managing partner at Thayer Street Partners, a boutique private equity firm providing flexible growth capital to recurring revenue businesses in the financial services, real estate services, and business services sectors. Before founding Thayer Street, Josh was an investor at Goldman Sachs, where he invested across the capital structure in financial services and business services assets and companies. What You Will Learn Breakdown: [00:00][00:45][02:10][04:30][07:15][10:00][12:20][15:40][18:25][20:30][22:45]Partnering With Portfolio Management Teams How do you partner with portfolio management teams? According to Josh, Partnering with portfolio management teams is not a one-size-fits-all approach. For them, they do a range of engagements with a portfolio company based on the level of ownership. If a company is a minority investor, they are helpful on both a periodic and situational basis. In many cases, they provide standard advice and stewardship and get involved in special projects around business development initiatives, key hires in finance and data analytics, strategic acquisitions, and financing. Josh shares that in cases where a company has more material ownership, is engaged in a build-up or roll-up strategy, requires many smaller assets, or has customers who are subscribers, their teams are very hands-on. They partner with the company to engage in diligence and structuring and, in some cases, execute strategic MNA on their behalf. The partnership is entirely based on the needs and objectives of the company. How to Contact Josh Josh on LinkedIn Thayerstreet.com​​ 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 t

In this episode of The Private Equity Podcast, host Alex Rawlings, treats listeners to a deep dive into the realm of artificial intelligence within the Private Equity sphere. Joining Alex as this week's guest is Glenn Hopper, an expert in digital transformation with extensive experience in deploying AI solutions in Private Equity contexts. Throughout the episode, Alex and Glenn explore how AI is reshaping the landscape of Private Equity, offering new avenues for growth, decision-making, and operational efficiency. Glenn shares his insights into the practical applications of AI, emphasizing the importance of understanding the intricacies behind digital transformation. From leveraging AI algorithms to analyze vast datasets for investment opportunities to optimizing portfolio performance through predictive analytics, Glenn sheds light on the tangible benefits that AI brings to Private Equity firms. He also discusses the challenges and considerations involved in integrating AI technologies into existing workflows, offering valuable advice for firms looking to embark on their digital transformation journey. Listeners gain a comprehensive understanding of how AI is revolutionizing the Private Equity industry, empowering firms to make more informed decisions, mitigate risks, and unlock new sources of value. Whether it's enhancing due diligence processes or identifying emerging market trends, Glenn demonstrates how AI can drive sustainable growth and competitive advantage in today's fast-paced environment. Breakdown: [00:00] - Introduction to the podcast and today's innovative topic, focusing on the intersection of Private Equity, AI, and digital transformation. [00:45] - Alex Rawlings introduces guest Glenn Hopper, detailing his expertise in finance, technology, and his significant contributions to digital transformation within the Private Equity sector. [02:00] - Glenn shares his journey into the world of finance and technology, highlighting the pivotal moments and the expertise he's developed in AI and digital transformation. [04:30] - Exploring the integration of AI in Private Equity, Glenn discusses the initial challenges and the transformative opportunities that AI presents for the industry. [07:15] - Glenn delves into specific examples of digital transformation in Private Equity, emphasizing the importance and impact of AI in analyzing and making investment decisions. [10:00] - The role of data analytics and AI in due diligence processes, with Glenn providing insights from his extensive experience. [12:20] - Strategies for leveraging technology to create value in Private Equity investments, through Glenn's analytical perspective and innovative approaches. [15:40] - Discussion on the broader implications of technological advancements on the services sector and their significance for Private Equity investors. [18:25] - Glenn offers practical advice for professionals aiming to integrate AI and digital transformation strategies within their investment practices. [20:30] - Glenn's forward-looking views on the evolution of AI in Private Equity and the emerging trends that investors should be aware of. [22:45] - Alex Rawlings concludes the podcast by thanking Glenn Hopper for his invaluable insights and encourages listeners to engage with the topic on social media and various podcast platforms. To connect with Glenn Hopper and delve deeper into his expertise in digital transformation and AI in Private Equity, you can visit his LinkedIn profile: Glenn Hopper on LinkedIn

In a compelling episode of The Private Equity Podcast, host Alex Rawlings engages in a insightful conversation with industry veteran Brian Cassady. The focus of this episode is on Brian's exceptional achievement of organically increasing revenue by $50 million and creating an impressive $500 million in EBITDA. Throughout the episode, Brian shares the strategic insights and transformative decisions that fueled this substantial growth. From innovative operational tactics to identifying and capitalizing on market trends, listeners gain a comprehensive understanding of the nuanced approaches that drove this remarkable success story within the Private Equity landscape. Join host Alex Rawlings as he navigates through Brian Cassady's experiences, offering listeners a firsthand account of the challenges, triumphs, and strategic maneuvers that led to such substantial financial gains. This episode serves as a valuable resource for professionals and enthusiasts alike, providing actionable insights and inspiration for those looking to drive organic growth within the Private Equity sector. Connect with Brian Cassady on LinkedIn to stay updated on his industry perspectives: Brian Cassady LinkedIn. For a deep dive into the world of Private Equity and a masterclass on driving organic revenue growth, tune in to this illuminating episode on The Private Equity Podcast.

Introducing Paul Barnhurst Paul Barnhurst (a.k.a. "The FP&A Guy") founded FP&A Guy, a company that provides FP&A coaching and consulting services. Paul has 12+ years of professional experience across several industries, with a strong background in financial planning, financial modelling, report building, and business partnering. Paul is also a content creator, LinkedIn influencer, and host of "FP&A Today," one of the most popular FP&A podcasts, and is known for his deep understanding of the FP&A software planning space. What You Will Learn Strategies for enhancing the FP&A processes Integrating Technology in PE Firms What FP&A teams need to improve PE processes Breakdown [00:32] Getting to Know Paul Barnhurst [01:12] One Mistake by PE Firms and action to correct it [02:29] Three things to improve PE firm’s FP&A process [04:32] How PE firms can improve decision-making around PF&A [07:23] How PE Companies choose and integrate Technology [10:26] Disregarded areas in FP&A that PE need to pay more attention to [13:20] What inspired Paul to set up a podcast and a community [16:17] Paul's Go-To Self-Improvement Resources [17:39] How to become a world champion at Excel [19:49] How to connect with Paul Improving FP&A in Private Equity What should PE companies do to improve their FP&A process? According to Paul, FP&A can be broken down into three areas. First, it’s people. The first thing you need to do is to make sure you have the right people, and you are upscaling that. With everything that is coming up with AI, you need people who can meet today’s demands, be commercial, and help drive the business forward. The second thing that the FP&A team needs to think about is the processes. They have to constantly streamline and automate the processes because data and demand are constantly increasing. The third thing that Paul shares is bringing the right technology. Technology serves as an enabler, and it can help PE firms reach the next level. However, according to Paul, if you start with technology, you will almost end up with a failed transformation. So think about the other processes first and then use technology to enable and free up your team to focus on being good business partners. How to Contact Paul Paul on LinkedIn Thefpandaguy.com Thank you for tuning in! To get the latest 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 alex.rawlings@raw-selection.com.

Introducing Ted Clarke Ted Clarke is an operator turned into a private equity investor and a shipping clerk turned into a CEO. Starting as a shipping clerk, Ted rose to become President & CEO of Products Research & Chemical Corporation (PRC), a global leader in aircraft and construction sealants and coatings. Today, Ted is a partner at Iron Path Capital, a private equity firm that focuses on specialty industrial investments, partnering with business managers on acquisitions and buying and building growth strategies using private equity capital. What You Will Learn Strategic pitching and selling to Private Equity Acquisition, recapitalization, and integration in PE Public companies Vs. Private Equity growth strategy Breakdown [00:59] Getting to Know Ted Clarke [02:35] Ted’s experience with acquisition and sales to PE firms [18:02] How to streamline the processes of integration of businesses [26:09] Ted's lessons from Public Companies and PE Firms [34:08] How Ted went from shipping clerk to CEO and writing two books [41:23] Ted's Go-To Self-Improvement Resources [43:44] How to get in touch with Ted [44:15] Ending the show The Process of Integration How can the CEOs and Senior leaders of portfolio companies and PE enhance the integration process? According to Ted, they have to be intentional not just with the integration process but also with what they are trying to build and the culture they are trying to develop to achieve their goal. Ted's experience in integrating acquisitions is based on the metrics. That is understanding the market you want to be in, the technology, and the characteristics you want to have and making the message simple so that it can permeate down the organization. Ted also shares that as you evaluate the acquisition, you need to put the time and effort into understanding the history of the business, determining the cost and gross synergies, and how you will integrate the acquired business into your culture. Having an open culture with clear and simple approaches to what you are trying to accomplish makes the integration process easy and transparent. It makes it clear very quickly whether or not the business you want to acquire will buy into your culture, and you can make changes early on. How to Contact Ted Ted on LinkedIn Tedclarkauthor.com 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 alex.rawlings@raw-selection.com.

Introducing Jason Hendren Jason Hendren is a CEO coach, speaker, and exit planning advisor who guides entrepreneurs in reaching large-scale objectives and planning for an eventual exit. Jason knows firsthand what it's like to grow a profitable business and navigate the selling process. He sold most of his business to private equity and stayed on and ran it as the CEO for a while. After selling it a second time, he bought some complementary businesses and eventually started another business, Hendren Business Advisors, where he helps business owners grow and exit their businesses. What You Will Learn Breakdown [01:16] Getting to Know Jason Hendren [03:00] Enhancing PE professional's relationship with management teams. [05:50] Improving CFO’s and C-suite exit strategy [10:22] Value creation and packaging a profitable business [12:00] Things Jason wishes he knew before he sold PE [15:32] Jason's Go-To Self-Improvement Resources [17:26] How to reach out and connect with Jason [17:44] Ending the show PE CFO and C-suite Exit Strategy How can CFOs and C-Suite improve their exit strategy? Jason shares that hiring the right investment banker is the first step. The worst time spent by an entrepreneur is in training their investment banker about their business and industry. The investment banker should walk in with that investment knowledge. When Jason is working with entrepreneurs, he looks for investment bankers who have sold businesses that look like theirs and are similar in size as much as possible. According to Jason, when you bring an investment banker in, they should be able to tell you about the buyers in the market and give you information you don’t have access to that you can tweak to get a higher multiple. How to Contact Jason Jason on LinkedIn Hendrenba.com 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 alex.rawlings@raw-selection.com.

Introducing Bill Canady Bill Canady is the CEO of OTC Industrial Technology and Arrowhead Engineered Products, both backed by private equity. Bill has over thirty years of experience as a global business executive in various industries and markets focused on industrial and consumer products and services. As a leader, Bill aligns with key stakeholders to create a clear and compelling vision to rally an organization to drive growth, control costs, and increase profitability. From his experience, Bill has built the Profitable Growth Operating System (PGOS) to help owners and operators worldwide grow their companies profitably. What You Will Learn Breakdown [00:17] Getting to Know Bill Canady [02:59] Common Mistakes by PE Firms and actions to correct them [04:15] How Bill is managing two companies as the CEO [07:07] The processes that have allowed Bill to run successful PE firms [17:57] How to cultivate a customer-centric mindset in PE [24:05] The most profitable sales model for PE firms [26:30] How to leverage data to achieve PE goals [28:30] Bill’s motivation and model for writing multiple books [32:15] Bill’s books and his PGOS model for profitable growth [35:40] Bill’s Go-To Self-Improvement Resources [36:53] How to reach out and connect with Bill How Data Works in Private Equity How does data work in achieving PE goals? According to Bill, the goal of PE firms is to make money and get to the exit as fast as possible. The way this works is by looking at the maths and identifying where a PE firm is making money. As a company, Bill shares that when they get the data, they start figuring out where to go, and as the CEO, his work is to communicate their mission and goals. The goals are irrefutable, and everyone around the table is committed to them in PE. They know exactly what they must do to get a return that is acceptable to everyone. This means that to make data work, you need three things. First, a CEO who says, “We’re going to follow the data and reorganize ourselves.” Second, the operators running the company have to follow the process. Third, you need a program manager who understands the 80/20, the toolset, and the strategy management process and can act as the trainer or coach within the business. According to Bill, without these three: someone to tell you how to get there, someone to do the work, and someone that says work must be done, the outcome is pretty underwhelming. How to Contact Bill Paul Bill on LinkedIn Billcanady.com/ ​​ 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 alex.rawlings@raw-selection.com.

Introducing Brian Scanlon Brian Scanlon is the managing partner at Deal Gen Partners, a deal-generation service sourcing deals for Private Equity Funds and Strategic Acquirers. Currently, DealGen Partners manages $2.7B in buy-side mandate and has generated over $900M in deal value. DealGen's combination of outreach strategy and network of partners brings private equity and strategic acquirers the perfect targets for their deal criteria. What You Will Learn PE deal origination strategies for top PE funds PE firm acquisition and mindset playbook Mistakes PE founders make when they sell Breakdown [00:56] Getting to Know Brian Scanlon [01:41] One Mistake PE Firms make and actions to correct it [04:39] Growing a PE equity fund [06:32] What PE should start doing differently in deal origination [09:09] The mindsets of founders of PE firms that want to be acquired [12:35] Questions PE founders don’t ask but want to know [16:26] Overcoming negative bias in PE and opening up for potential sales [17:58] Things Brian Likes and Dislikes about private equity [19:44] Brian’s Go-To Self-Improvement Resources [23:52] Parting Thoughts The Mindsets of PE Founders What is the mindset of PE founders who want to sell their company? It depends on the industry and how vast the owner is in what the transaction will look like. When we move towards manufacturing, logistics and blue-collar types of businesses, typically, these are business owners who have been building firms for 20-30 years and are looking to exist. They have a different notion of what a transaction would look like than a start-up tech founder who is building something with the intention of selling. According to Brian, they usually see owners move through a progression from thinking about selling to reaching out to friends to see what they sold for and how the transaction looks like to, which is not applicable to their business as every business is different, and they only get 30% of the right information. Some hire valuation funds to see what they think they are worth, and that’s great. They are going to be at the ballpark of the standard deviation of what they are worth, but it’s not the feedback from the people who are going to write them a cheque to acquire the company, which is the most useful feedback. According to Brian, the PE founders' mindset is usually a little hesitant, and the biggest challenge is their expectations vs. true valuation from funds. You can think you’re worth 10 times your bottom-line, but if they are willing to pay you 3, that’s what you are worth. How to Contact Brian Brian on LinkedIn dealgenpartners.com ​​ 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 alex.rawlings@raw-selection.com.

Introducing Charlie Chipchase Charlie Chipchase is the Managing Director and Head of Europe at Petra Funds Group, a leading fund administration provider to global private equity, venture capital, and private debt funds. Charlie is a seasoned private funds attorney and ESG expert with over 20 years of experience working at a $40+ billion private equity firms and international law firms. What You Will Learn: The growing case for ESG investing in private equity Strong ESG practices for the benefit funds and their investors The common ways ESG creates value in private equity Breakdown: [00:00] Introduction [02:40] The Mistakes PE Firms Make with Their Portfolio Companies [04:50] The Role of ESG in Private Equity Investing [07:46] How to Get the Most Out of ESG Data [10:12] Ways to Improve Your ESG Strategy [15:30] Why All PE Firms Should Consider ESG Investing [21:06] What Charlie Likes and Dislikes About Private Equity [23:16] The Humility Aspect of PE Investing [25:32] What Charlie Watches, Reads, and Listens To [28:50] Parting Thoughts The Growing Case For ESG in Private Equity Environmental, Social, and Governance (ESG) factors are rapidly gaining traction in private equity, and for good reason. As society becomes increasingly aware of its environmental and social responsibilities, investors seek ways to align their capital with positive change. And what better way to do that than to go the ESG route? According to Charlie, ESG integration in private equity is not just a moral choice; it's a smart investment strategy. PE firms that recognize the long-term benefits of ESG attract the best talent, raise capital faster, and sell for profitable margins. Companies with strong ESG performance also tend to outperform their peers in the long run. We live in a world where sustainability is paramount. ESG integration in private equity is not just a trend but a win-win strategy, benefiting both investors and society. Links and Resources: Charlie's LinkedIn Petra Funds Group Charlie's Email - Charlie@petrafundsgroup.com The Watchman's Rattle by Rebecca D. Costa The Spy and the Traitor: The Greatest Espionage Story of the Cold War by Ben Macintyre 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 alex.rawlings@raw-selection.com.

Introducing Brendan Anderson Brendan Anderson is the Founder and Managing Partner of ScaleCo Capital, a lower middle market private equity firm focusing on control-oriented leveraged buyouts and growth equity investments in fast-growing companies. Scalable partners with companies to bring operational expertise and strategic resources to scale a business's growth potential and build long-term value. What You Will Learn: Why Speed and Change is the New Superpower in Private Equity How to Grow and Scale a Profitable Portfolio Company The Benefits of Investing in Small, High Gross Margin Companies Breakdown: [00:00] Introduction [02:15] The Mistakes PE Firms Make with Their Portfolio Companies [04:20] The Sub 5 Million EBITDA Bussines Model [06:46] How Brendan and His Team Drive Value Creation [09:56] The Biggest Benefit of Investing in Small Profitable Companies [11:14] The Most Effective Way to Run a Portfolio Company [12:37] Processes and Systems For Effective Fund Management [14:36] What Brendan Likes and Dislikes About Private Equity [16:20] What Brendan Watches, Reads, and Listens To [17:24] Parting Thoughts Speed and Change: The New Super Power in Private Equity Speed and change is the new superpower in private equity. According to Brendan, we live in an age where you must execute everything with speed. When you buy a portfolio company, go in as fast as possible, make changes, and start driving value immediately. Most portfolio companies have been operating the same way for decades. And although they might be profitable, their way of doing things is not necessarily the best way to run a business. Traditionally, many PE firms favored a hands-off approach to managing the operations of portfolio companies. They leave the management teams to run operations and only focus on driving strategic direction. However, times have changed, and nowadays, PE firms hire operational specialists who work collaboratively with management teams to provide additional bandwidth and support. For Brendan, this approach is what accelerates speed and change in the more profitable PE firms. Links and Resources: Brendan on LinkedIn Scaleco.com Brendan’s Email: Brendan@scaleco.com 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 alex.rawlings@raw-selection.com.