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 alex.offer@raw-selection.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.

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 alex.offer@raw-selection.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.

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 alex.offer@raw-selection.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.

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 alex.rawlings@raw-selection.com.

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 alex.rawlings@raw-selection.com.

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 alex.rawlings@raw-selection.com.

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 alex.rawlings@raw-selection.com.

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 alex.rawlings@raw-selection.com.