Private Equity Value Creation Podcast Ep. 59: John Bailey, OneFund Investments | What To Look For in PE Operating Teams and Partners
Jan 21, 2025
Shiv interviews John Bailey, Co-founder of OneFund Investments, known for his expertise in tech-enabled fund management. They dive into how to effectively vet private equity firms and the critical role operating teams play in investment success. John discusses different models for these teams and the significance of maintaining a lean, impactful structure. He also emphasizes the importance of thorough due diligence and strategic assessments to uncover growth opportunities, ultimately showcasing how integrated operations can drive value in investments.
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Aligned Incentives
- Ensure the operating team's incentives align with the portfolio company's success.
- The portfolio company, not the PE firm, should directly pay external operating partners.
Operating Team Growth
- Many PE firms now have operating teams, unlike in the past.
- This increased prevalence creates opportunities for allocators to find funds with truly differentiated, high-quality operating teams.
Lean Operating Teams
- Keep operating teams lean and efficient.
- A few smart, dedicated individuals can outperform a large consulting firm.
