The LAB: Value Creation in Private Equity

In this episode, The LAB hits the road! Join Scott down in Baltimore with Kevin McAllister, Founder of Access Holdings, as they discuss a wide range of topics:

In this episode with Paul Swaney, Managing Partner of Swaney Group Capital, Paul shares actionable insights on value creation and business transformation. From the urgency of strategic onboarding to the establishment of a robust governance structure, Paul delves into his methodology of taking the guess-work out of business transformation. Whether you're a seasoned investor or new to the field, this podcast provides valuable strategies for driving success and maximizing returns.

In this episode, Nick and Scott are joined by Nadim Malik, CEO and Founder of SPS by Bain & Co, an information services firm that helps private equity firms, lenders, and M&A advisors and service providers optimize their business development effectiveness. The discussion centers on the transformative role of data in the Private Equity world and how value creation starts at deal sourcing. Nadim founded SPS in 2009 after six years in the business development group of American Capital, where he successfully created and managed distinctive market research tools, analytics, reporting and processes that drove the firm’s deal origination, investor development, and strategic growth.

In this episode, Nick and Scott are joined by Ray Carey, Operating Partner at Level Equity. The discussion revolves around the role of an operating partner, the challenges of being a CEO, and the importance of transparency and data in achieving successful outcomes. Ray shares insights from his experience as a CEO and an operating partner, emphasizing the need for a customized approach to each company's unique challenges. Ray was a three-time CEO and a private equity investment partner, before joining Level Equity to be the Head of NextLevel Operations. As Head of the NextLevel Operations team, Ray’s primary role is to accelerate portfolio company growth by supporting their CEOs.

We are excited to release our #LIVE event recording with three of the leaders in Private Equity Technology Value Creation as a podcast episode. Steven Faas, Operating Partner - Technology at Apollo Cory Eaves, Partner at BayPineRobert Sears, Principal at The Carlyle Group Our panel shared their thoughts and experience driving value creation initiatives across leading portfolios, and covered topics like: Considerable time was allotted for Live Q&A for the audience. Hope you enjoy and we look forward to the next one!

In this episode, Nick and Scott interviews Garrett Blank, former Principal at Abry Partners. Garrett shares insights for aspiring PE-backed executives and explains the strategies PE firms assess in potential investments. He emphasizes alignment of vision, qualities attractive to PE firms, and the adaptability to collaborative decision-making. The discussion shifts to structuring PE deals and the impact of economic changes, like rising interest rates. Garrett emphasizes industry specialization and the rise of specialized teams within PE firms. The conversation offers a comprehensive view of private equity, benefiting industry professionals and those interested in engaging with PE firms.

Our latest guest on the LAB Podcast is Sean Mooney. We were excited to bring him on because after spending a couple decades in Private Equity as an investing professional, he thought there must be a better way to help the industry drive higher returns more quickly. (sounds easy…) At the LAB - we agree as our models look to achieve similar outcomes in different ways. Sean developed a way to bring in specialized consultancies to fit the precise need of PE portfolio company – every time while being better, faster, and cheaper. We hope you enjoy this conversation and can bring some of these best practices to your business!

Josh Fennig⁠ is currently the General Manager of a consulting business that advises companies regarding E-mobility for electric vehicles and Industry 4.0. In this episode he shares his experience and methodology when it comes to turnarounds of distressed companies.

Paul Stansik is an Operating Partner at ParkerGale, a small PE Firm where he serves as sales, marketing and growth advisor to their portfolio. He joins us to share his perspective on how he thinks about growth and where the opportunities exist in founder-led, profitable technology companies. In this episode, we spend time walking through the specifics around evaluation and execution of PE investment opportunities. Paul highlights what he has learned at bulge bracket consulting firms like Bain & Company and then put into practical application with his PE sponsor.

According to Forbes, there are close to 30 million private companies in the United States. In this episode, we get some great insights from one of these owners that grew his business over the course of almost three decades, then sold to a PE firm (twice) and is doing it again with another PE firm. Don Mershon joins us and discusses he could have achieved the same level of growth in five years (not 30) and how to pick the best PE firm if you are looking to do the same thing. A great Case Study for business owners and PE firms that are looking to differentiate themselves and drive top decile returns!

Mark Tarchetti joins us to discuss growth as a value driver. The guys cover growth strategy, managing to full potential, activity based management, “structure follows strategy”, and the culture of growth. (3:00) Growth as a value driver: PAI Tropicana case study (8:23) How to work with management teams to implement growth strategy (10:52) Diligence potential as much as performance (14:20) Activity based management thought process (18:53) Changing the mindset of internal team (23:30) Cultural of growth (27:00) Nick & Scott recap

Chris Moye joins us to discuss Digital Transformation. The early days of building the RTS framework at McKinsey, the EQ/IQ/DQ methodologies for effective transformation, and ultimately what makes for a successful implementation of digital transformation. (2:25) Chris discusses foundation of the digital transformation implementation frameworks and the performance infrastructure to drive change (7:55) Digital transformation in the current inflationary enviornment (10:30) Defining digital transformation; applying digital tools to fall into one or two categories: frictionless and optimize (12:48) Aligning vision going forward, strategies for implementing digital transformation (16:42) EQ; the importance of the people, leadership and communication (24:49) Nick & Scott recap

What makes an effective Chief Transformation Officer? Al Morales is a seasoned CTO effecting change and transformation at some of the largest privately and publicly held companies. (1:44) Where to look for a differentiated opportunity to generate growth and margin improvement and then actually go and deliver real operational value (3:30) Defining the role of a Chief Transformation Officer (4:25) The most critical attributes of a good transformational leader (5:50) What are some of the things that a good transformational leader must do to be successful (8:05) Where to start and how to begin to drive a transformation (9:55) Maintaining and sustaining effective change (11:10) The biggest challenges facing a CTO (12:34) The composition of a typical CTO office’s team in terms of skills sets and roles (14:39) Creating alignment between Private Equity and the Transformation Officer (16:12) Ensuring sustainability of the results from a transformation project (21:55) Nick & Scott recap

The LAB takes the ethereal to the practical. Our podcast acts like a business school case study for private equity professionals, CEOs, Operating Partners, and Chief Transformation Officers. We all know transformation is the key to differentiated alpha. Here's how you actually do it. Our audience tunes in to learn from those in the field, getting their fingernails dirty and driving meaningful growth through better operations, technology and data. We learn from going to business school, teaching at business schools and applying these lessons in the real world - that case studies actually help the insights stick better. Come join us.