Identifying AI Winners and Transforming Services

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is with two executives who have helped to build one of the industry’s leading alternative asset managers.

In Permira Part 2, Brian Ruder joins his Co-Managing Partner and Co-CEO Dipan Patel in Permira’s London office to discuss the firm’s evolution and how the business has grown to over €80B in AUM.

Both Brian and Dipan bring deep backgrounds in private equity investing to bear as they now lead the firm through its next phase of growth.

Brian joined Permira in 2008 after working as a Partner at Francisco Partners. He’s Co-Managing Partner and Co-CEO of Permira, also serving on the firm’s Executive Committee and the buyout funds’ Investment Committee. He was instrumental in building the firm’s Technology sector team, which he co-led until 2023 where he worked on a number of the firm’s notable transactions, including Ancestry, Genesys, Informatica, LegalZoom, Magento, McAfee, Relativity, Zendesk, and more.

Dipan joined Permira from Gores Group and is Co-Managing Partner and Co-CEO of the firm. He serves on Permira Holdings Limited Board and Permira’s Investment Committee and Executive Committee. He’s focused on technology and services investing, working on deals such as Renaissance Learning, Informatica, Axiom, Adevinta, AllTrails, Ancestry, LegalZoom, and more.

Brian, Dipan, and I had a thought-provoking conversation about what it takes to build and run a scaled alternative asset manager and how to differentiate a firm and a culture. We discussed:

• How the firm’s beginnings have shaped the culture that has been built and how that culture has permeated how they make investment decisions, work with companies, founders, and LPs.
• The benefits and challenges of the collaborative leadership model.
• How would an LP underwrite Permira’s culture?
• How the firm’s European heritage helps as an investor.
• The opportunity set in Europe.
• The investment culture at Permira and how its structure and set up helps investment processes and decision-making.
• Why software buyouts have become a larger part of the buyout investing landscape.
• The Growth vs. Buyout mindset.
• The advantage for technology forward incumbents.
• How AI is impacting software investing and how AI is impacting services businesses.
• The thought process behind launching a wealth solutions business, Permira Wealth, and how it reflects the culture of the firm.

Thanks Brian and Dipan for coming on the show to share the evolution of Permira and your expertise and wisdom in private markets.

A word from AGM podcast sponsor, Ultimus Fund Solutions

This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.

To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.

Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at gharris@ultimusfundsolutions.com.

We thank Ultimus for their support of alts going mainstream.

Show Notes
00:00 Message from our Sponsor, Ultimus

01:18 Welcome to Alt Goes Mainstream

01:56 Introducing Brian Ruder and Dipan Patel

04:44 Private Equity and Technology

04:54 Brian's Career Journey

06:51 Dipan's Career Journey

11:44 AI's Role in Modern Investing

12:38 AI in Services and Technology

13:27 Permira's Sector-Focused Approach

13:54 AI's Broader Impact on Industries

17:27 Leadership and Innovation in Private Equity

18:49 Underwriting Deals in the AI Era

18:53 Importance of Market Leadership

21:58 Technology Forward Incumbents

24:00 Permira's Continuous Innovation

24:26 Building the Business of Permira

24:36 Dipan's Perspective on Firm Growth

25:35 Core Values and Their Impact

26:39 Investment Strategies and Sector Focus

27:19 Fluid Team Dynamics

28:04 Growth vs. Buyout Mindset

29:45 Long-Term Investment Philosophy

30:29 Driving Terminal Value

30:50 Optimizing Long-Term Profitability

31:55 Case Studies: Informatica and Ancestry.com

32:58 Skillsets for Growth-Oriented Investing

33:26 Assessing Long-Term Outcomes

34:09 Empowering Long-Term Thinking

34:30 Big Picture Thinking in Investments

38:05 Co-Leadership Model

39:38 Challenges of Co-Leadership

40:37 Permira's Entrepreneurial Culture

43:14 Diversifying Capital Base

44:58 Educating the Wealth Channel

46:29 Permira's Brand in the Wealth Channel

47:10 Future Evolution of Permira

Editing and post-production work for this episode was provided by The Podcast Consultant.