Common PE Mistake: Reinventing the Wheel

In this episode, Alex Rawlings is joined by Tim Schulte, Value Creation Partner at Council Capital, a Nashville-based private equity firm investing in healthcare businesses across tech-enabled services, outsourced services, and provider platforms.

Tim brings a unique blend of consulting, operational, and investing experience. He shares how Council Capital drives value creation through collaboration, leadership development, and a structured yet flexible approach to talent and operations.

🔑 Key Highlights:

00:00 – Introduction
Tim’s background: consulting → startup growth → private equity. At Council for 6+ years, focused on scaling healthcare companies.

01:15 – Common Mistake in PE
Reinventing the wheel. Tim advocates for leveraging shared knowledge and collaboration across portfolio companies instead of starting from scratch.

02:12 – Three PE Value Creation Models
Tim outlines three styles:

1. Collaborative but shallow
2. Substantive but rigid
3. Collaborative and substantive – Council Capital’s approach

03:37 – Collaboration in Practice
Council’s CEO Council is made up of 30+ senior leaders who are both advisors and investors. Their involvement creates mentorship and alignment without top-down pressure.

05:02 – Council’s Value Creation Team
A large internal team supports portfolio companies with tailored toolkits (not rigid playbooks) across growth, ops, and talent.

06:11 – Hiring Top Executives
Talent is central to value creation. Council uses:

• Topgrading
• Aptitude & personality assessments
• In-depth referencing
• Case studies
  ...to ensure fit and long-term success.

09:05 – Role of Assessments
Assessments aren’t used to screen candidates out, but to guide interview questions and identify fit. Council tracks data across hundreds of hires to correlate traits with performance.

12:27 – Broader Talent Support
Beyond the C-suite, Council helps portfolio teams:

• Implement HR tech
• Refine hiring processes
• Improve onboarding
• Structure incentive plans

14:38 – First 100 Days for CEOs
New CEOs are expected to:

1. Align on strategy
2. Build out the right team
3. Ensure reliable data systems to track performance

16:58 – Recommended Resources
Tim recommends:

• Acquired – for business case studies
• Founders – for leadership traits & human stories

17:52 – Connect with Tim Schulte
Best via LinkedIn or at Council Capital

Raw Selection partners with Private Equity firms and their portfolio companies to secure exceptional executive talent. We focus on de-risking executive recruitment through meticulous search and selection processes, ensuring top-tier performance and long-term success.

🔗 Connect with Alex Rawlings on LinkedIn: https://www.linkedin.com/in/alexrawlings/
🌐 Visit Raw Selection: www.raw-selection.com

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