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Welcome to the Private Equity Podcast! In this episode, host Alex Rawlings engages in a dynamic discussion with Nick McLean, founder of Four Pillars Investors, on the topics of servant leadership and disruptive marketing in the Private Equity sector. Join us as we delve into Nick's insights and experiences in navigating the complexities of the industry.

[00:00] Hosted by Alex Rawlings, featuring Nick McLean. Discussion on servant leadership and disruptive marketing in Private Equity.

[00:12] Nick McLean, founder of Four Pillars Investors and creator of Nick McLean Private Equity YouTube channel.

[00:42] Nick McLean, co-founder of Four Pillars Investors, targeting lower middle market companies with untapped growth potential.

[01:09] Not all firms are equal; some are overly spreadsheet-driven. Four Pillars Investors prioritizes entrepreneurial problem-solving over rigid financial analysis.

[03:03] Nick's shift from business operator to Private Equity investor, emphasizing portfolio growth and development.

[04:52] Prioritize relationship-building; establish rapport before closing deals. Four Pillars Investors focuses on strong, pre-existing relationships.

[07:41] Named after core values: Relationships, Servant Leadership, Challenge the Status Quo, Persistence.

[09:27] Focus on helping team members succeed; create positive work environments and prioritize career development.

[14:49] Nick's decision to start a YouTube channel differentiates Four Pillars Investors, aims to provide valuable content and build relationships.

[18:17] Content creation and branding are long-term investments; intent and commitment are crucial for success.

[22:09] Studying leadership principles; recommended book: "Influence: The Psychology of Persuasion" by Robert Cialdini.

[24:30] Contact details for Nick - Email: nmclean@example.com; YouTube Channel: Nick4FourPillars.

[25:55] Thank you to Nick McLean for sharing insights; subscribe to the Private Equity Podcast for weekly episodes.

To connect with Nick, visit his LinkedIn profile at: Nick McLean LinkedIn

Thank you for tuning in!

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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.

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Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings discusses the critical factors behind deal failures and how to steer clear of them. Brian Scanlon from DealGen Partners shares insights on deal origination and sales processes. He stresses prep and presentation, akin to staging a house for sale. Brian pinpoints reasons for deal failures: unprepared sellers, messy finances, and unrealistic valuations. He also covers effective deal structures, boosting multipliers, and seller challenges like cultural clashes and prolonged due diligence. Key takeaway: swift action and clear communication are vital to keep deals on track. Tune in for expert advice on selling a company successfully and avoiding pitfalls.

[00:00] Alex Rawlings introduces the topic of selling a company and the challenge of achieving high multipliers. He welcomes Brian Scanlon, noting his previous podcast on deal origination.

[01:18] Brian Scanlon discusses the common reasons deals fail, primarily due to sellers being unprepared. He explains the importance of proper preparation and packaging, akin to staging a house for sale.

[03:40] Brian estimates that nearly all proprietary deals are unprepared and outlines why private equity funds prefer these deals despite the lack of preparation.

[04:39] Brian highlights the role of investment bankers in managing the sale process efficiently, similar to selling a house, and stresses the need for sellers to be upfront about financials and issues.

[07:30] Brian identifies the lack of clean financials and unrealistic valuation expectations as major reasons deals fail. He emphasizes the importance of accurate financial statements and realistic deal structures.

[09:52] Brian explains typical deal structures, including cash at close, earnouts, and equity rollovers, and stresses the importance of understanding these structures before going to market.

[11:17] Brian discusses factors that increase a company's multiplier, such as recurring revenue, customer retention, and quality contracts. He uses the staffing industry as an example to illustrate these points.

[14:13] He explains the challenges of project-based businesses with high customer churn and declining revenue, which generally have lower multipliers.

[16:06] Brian talks about why sellers back out of deals, citing cultural misalignment, process frustration, and the length of the due diligence period as primary reasons.

[19:56] He notes that tighter debt markets and more rigorous due diligence are causing deals to take longer, increasing the risk of the business not appearing as attractive by the closing date.

[22:50] Brian emphasizes the importance of effective communication to keep deals moving and shares examples where delays led to deals falling through. He advises completing the due diligence period quickly to avoid deal collapse.

[25:46] Alex asks for top advice.

[26:20] Alex thanks Brian for joining him on the podcast.

To connect with Brian, visit his LinkedIn profile: Brian Scanlon LinkedIn

Thank you for tuning in!

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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.

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Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings is joined by Paul Swaney, Managing Director of Swaney Group Capital. Formerly with Partners Group and a veteran of McKinsey and Amazon, Paul dives into the intricate world of value creation from an operator turned investor perspective. He shares his journey from the military to the forefront of private equity, discusses the innovative use of media for business growth, and details the strategic operational frameworks that have shaped his successful career. Join us as Paul provides a deep dive into his approach to enhancing portfolio company performance and his insights on the pivotal role of transformation governance in private equity.

Breakdown:

[00:00] Introduction to Paul Swaney, discussing his transition from Partners Group to founding Swaney Group Capital.
[00:10] How Paul uses media to enhance his Private Equity firm’s outcomes.
[00:22] Mention of a successful investment initiated from Twitter.
[00:25] Overview of Paul’s career and insights into his value creation strategies in Private Equity.
[00:55] Paul provides a detailed background of his diverse experiences from military service to corporate roles and Private Equity.
[01:24] Insights into applying lean system in a chemical plant and his recruitment by McKinsey.
[02:21] Challenges of starting his own Private Equity firm during peak deal flow times and growing his team.
[03:17] Common mistakes in Private Equity from deal processing to post-acquisition management.
[04:45] Lessons from Partners Group and the importance of transformation governance post-acquisition.
[06:04] Introduction to the Swaney Group Operating System, focusing on operational excellence.
[07:30] Discussion on maintaining flexibility and strategic planning in business operations.
[09:25] Paul’s effective use of social media for deal origination and brand building.
[10:24] Emphasis on the initial 100-day observational period post-acquisition to understand business intricacies.
[12:16] Typical patterns observed in founder-led businesses and strategic advice for potential acquisitions.
[14:43] Importance of strategic operational assessments in Private Equity investments.
[18:27] Paul discusses leveraging media for enhancing visibility and deal flow in Private Equity.
[19:25] Success stories from using Twitter for business development and investment opportunities.
[21:17] Closing thoughts on the integration of operational systems within Private Equity to enhance performance.

To connect with Paul, you can visit his LinkedIn profile at Paul Swaney 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.

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Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings talks with Chris Jamroz, CEO of Roadrunner and a former executive at Ascent Global Logistics. Chris shares his extensive experience in logistics and Private Equity, discussing the transition from investment banking to executive leadership. He highlights the common errors in Private Equity, such as focusing too heavily on past performance instead of potential growth, and offers advice on effective leadership and strategic investment. Chris also provides insights into navigating the cyclical nature of the logistics industry and emphasizes the importance of operational expertise in achieving successful exits. This episode offers valuable perspectives on leadership and investment strategies in Private Equity.

Breakdown:

[00:00] Introduction to the podcast and guest Chris Jamroz, highlighting his commitment and unique approach to running a business.
[00:16] Chris reflects on the critical factors contributing to his success over the past four years.
[00:26] Chris offers advice on being a successful Private Equity-backed CEO.
[00:46] Overview of Chris's career trajectory from investment banking to leadership roles in logistics, and the recent sale of Assent to HIG.
[01:16] Start of the in-depth conversation with Chris, exploring his strategies and experiences across various roles.
[01:46] Chris shares his approach as a "shareholder value unlocking specialist" and his operational playbook across the global supply chain.
[02:12] Discussion on common mistakes in Private Equity and portfolio companies, with historical context and advice for modern practices.
[03:58] Chris critiques the backward-looking focus of Private Equity firms and emphasizes the importance of future potential in investment decisions.
[06:21] Chris elaborates on the need for a paradigm shift in Private Equity from past performance to future potentialities.
[07:19] Inquiry into balancing the evaluation of past performance and future potential in Private Equity investments.
[10:15] The significance of having a strong operations team in achieving successful outcomes in Private Equity ventures.
[13:39] Mention of Grata, highlighting its role in enhancing proprietary deal flow with data-driven processes.
[14:07] Chris provides insights into the logistics industry, discussing its trends and cyclicality.
[18:27] Detailing the process and challenges faced during the recent sale of Assent Global Logistics to HIG.
[22:18] Chris shares the personal and professional challenges he faced from taking office to navigating company exits.
[26:47] Advice to Private Equity-backed chief executives on understanding and adapting to business realities.
[33:07] Chris discusses his personal influences and reading habits, emphasizing the value of learning from both successes and failures.
[39:13] Closing remarks and ways to contact Chris Jamroz for further insights and discussions.

To connect with Chris, you can visit his LinkedIn profile at Chris Jamroz 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.

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Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings chats with Dan Cremons, Founder of Accelera Partners, and discusses the integration of human capital into Private Equity value creation, emphasizing proactive talent management. He shares insights on optimizing teams, strategic hiring, and the significance of due diligence on leadership before acquisition. Cremons stresses learning from hiring mistakes, recognizing biases, and evolving human capital practices. He advocates for nuanced talent assessment, including development and coaching. Resources influencing his approach to value creation and human capital in private equity are also shared.

Breakdown:

[00:00] Introduction to the concept of surgically approaching value creation.
[00:18] Discussion on common hiring mistakes rooted in cognitive biases.
[00:30] Introduction of Dan Cremons, founder of Accelera Partners, and an overview of his background in Private Equity.
[00:59] The focus shifts to the importance of talent, hiring processes, due diligence, and the use of scorecards.
[01:29] Dan Cremons shares his journey from finance to Private Equity and founding Accelera Partners.
[02:56] Key mistake Private Equity firms make: a reactive approach to value creation.
[04:22] The evolving importance of proactive value creation in a competitive Private Equity space.
[05:21] Explanation of value creation and its fundamental meaning.
[07:16] The critical role of people in driving value creation.
[09:12] Introduction to people planning and its importance.
[13:20] The ongoing process of aligning talent with the company's evolving needs
[17:38] Discussion on the iterative effort of people planning throughout an investment.
[20:02] Personal reflections on learning from hiring mistakes.
[23:42] The evolution of human capital practices in Private Equity.
[27:02] Importance of professional training in interviewing and hiring.
[30:44] Due diligence on portfolio companies' executive teams pre-acquisition.
[34:03] The broader scope of organizational due diligence, including leadership, talent, culture, and capabilities.
[37:18] Dan Cremons shares his influences and recommended resources.

You can connect with Dan Cremons on LinkedIn by visiting his LinkedIn Page - Link to Dan Cremons' 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.

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Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings engages with Chris Parisi, a partner at Carl Marks Advisors, to discuss how Private Equity firms can more effectively engage with business owners and founders to secure successful deals. Parisi shares insights from his extensive experience in middle-market investment banking, focusing on the nuances of working with family-owned and privately held businesses.

He emphasizes the importance of understanding and respecting the unique challenges these businesses face, such as customer concentration and the need for a cultural fit beyond mere financial valuation. Throughout the discussion, Parisi offers advice on building trust with business owners, the current and future M&A outlook, and how Private Equity firms can adapt their strategies to ensure mutual success in acquisitions.

Breakdown:

[00:00] Alex Rawlings introduces the Raw Selection Private Equity Podcast, welcoming Chris Parisi to discuss Private Equity strategies.
[00:12] Chris traces his career from Ernst & Young to the Blackstone Group and his current role at Carl Marks Advisors.
[01:12] Insight into Chris's career shifts and his significant move to Blackstone Group.[01:42] Chris discusses the evolution of fund sizes he has managed, from his early career to present multi-billion dollar funds.
[02:12] He explains his academic and professional journey in middle market investment banking post-MBA from Northwestern.
[02:42] Overview of Carl Marks Advisors' focus on middle market M&A and family-owned businesses.
[03:09] Chris highlights challenges like customer concentration in family-owned business M&A.
[04:04] Insights on how Private Equity firms may miss opportunities by strictly adhering to their investment criteria.
[05:30] Emphasis on the importance of recognizing management team strengths in investment strategies.
[05:59] Discussion on the 2024 middle market M&A outlook, considering interest rates and earnings visibility.
[07:56] Predictions of increased deal flow activity in late 2024 and 2025 due to more predictable earnings.
[09:50] How Private Equity firms can build acquisition confidence through predictable financial projections.
[10:46] Factors influencing the shallow M&A market of 2023, including COVID-19 and supply chain issues.
[14:18] Chris discusses the need for strategic adjustments in supply chain management post-pandemic.
[17:15] Insights into why family business owners decide to sell, driven by personal motivations and life events.
[18:14] What business owners seek in Private Equity firms beyond financials, like cultural fit and growth plans.
[21:09] Effective engagement strategies for Private Equity firms with business owners during acquisitions.
[25:30] Chris shares his personal influences and recommended readings.
[28:27] Closing remarks and contact information for Chris Parisi for further M&A insights.

To connect with Chris, you can visit his LinkedIn profile at Chris Parisi 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.

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Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings speaks with Rocío Heres, Partner at AltamarCam Partners and discusses the competitive nature of capital raising in Private Equity, stressing the value of talent development and succession planning for long-term success. She highlights the shift towards specialization in the industry and the importance of aligning with LP expectations in fundraising efforts. Rocío shares insights from her international career and addresses the balance between professional success and personal life, advocating for increased female representation in Private Equity. Contact details for further conversations with Rocío are also provided.

Breakdown:

[00:00] The competitive landscape for capital in Private Equity is discussed.
[00:16] Rocío Heres, a partner at AltamarCam Partners, is introduced. The episode promises insights on strategies to attract more capital and women into Private Equity, career advice, and more.
[01:14] Rocío shares her background, highlighting her role in Private Equity investments in North America.
[02:07] The common mistake of Private Equity firms taking their people for granted is discussed, emphasizing the importance of fostering a family-like environment and career growth.
[03:05] The necessity for clear succession planning and career path development within private equity firms to ensure long-term success.
[04:29] Rocío talks about observing the evolution of Private Equity firms and the importance of stable, process-oriented firms that focus on repeatable and understandable processes.
[07:21] The challenges and opportunities in a competitive capital market are discussed. Rocío emphasizes the importance of sticking to core investment strategies and learning from various Private Equity firms.
[10:34] The trend towards specialization within Private Equity firms is noted, including sector-focused and generalist firms developing expertise in specific areas.
[13:41] Rocío comments on the changing fundraising landscape and the increasing effort by Private Equity firms to understand LP needs.
[17:21] The benefits of having an international career and Rocío's experiences working in different countries are shared.
[20:07] Cultural differences and the welcoming nature of the North American market are discussed.
[22:29] Rocío talks about her influences, focusing on staying updated with market trends and developments, especially in the secondary market.
[24:24] Addressing the gender gap in Private Equity, Rocío emphasizes the possibility of balancing a successful career and family life within the industry.
[28:05] Contact information for Rocío is provided, encouraging listeners to reach out for advice or discussion.

You can connect with Rocio Heres on LinkedIn by visiting her LinkedIn Page 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 alex.rawlings@raw-selection.com.

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Welcome to The Private Equity Podcast! In this episode, we are joined by Sam Adams, Managing Director of Talent at Berkshire Partners. Sam shares invaluable insights into the importance of talent development and hiring beyond the conventional Private Equity norms. Discover Berkshire Partners' innovative approaches to nurturing talent, their unique selection processes, and the impact these strategies have on their overall success. Sam also discusses the cultural elements that support growth within a Private Equity firm and the unconventional paths to hiring that have proven effective. Stay tuned as we dive deep into how Berkshire Partners sets the gold standard in people development.

Breakdown:

[00:00] Introduction to Sam Adams and the focus of the podcast on advanced talent management practices in Private Equity.
[00:28] Overview of Berkshire Partners' innovative approaches to talent development and hiring.
[01:57] Sam shares her unique journey from advertising to becoming the head of talent at Berkshire Partners.
[04:44] Discussion on common mistakes Private Equity firms make in talent assessment and how Berkshire addresses these challenges.
[07:04] In-depth look at how Berkshire develops its talents, including the training and mentorship programs available.
[10:48] Sam discusses the structured mentorship and the robust performance review processes at Berkshire.
[14:08] Influence of firm culture on talent development and the integration of functional experts within deal teams.
[18:00] Details on the managing director development process and feedback mechanisms used at Berkshire.
[22:12] Sam emphasizes the importance of getting the hiring process right to ensure smooth operations and development within the firm.
[28:49] Recent changes and improvements in Berkshire's selection process based on lessons learned.
[33:00] Further discussion on the non-predictive nature of traditional educational scores in hiring.
[38:16] Explanation of Berkshire’s comprehensive approach to building internal infrastructure to support its operations and investment strategies.
[42:00] Exploration of the firm's cultural emphasis on talent and the historical roots of this focus.
[45:22] Closing remarks and thanks to Sam for her insights.

To connect with Sam, you can visit her LinkedIn 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 alex.rawlings@raw-selection.com.