The Value Creation Plan From an Operator Turned Investor With Paul Swaney
Jun 18, 2024
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Paul Swaney, Managing Director of Swaney Group Capital, shares insights on using media for business growth, value creation strategies in Private Equity, challenges of starting a PE firm, and career transitions. He discusses successful investments from Twitter, application of lean systems, and the pivotal role of transformation governance in PE.
Implementing lean systems is crucial for operational optimization in private equity.
Establishing transformation governance post-acquisition drives better outcomes for portfolio companies.
Deep dives
Paul Swaney's Diverse Career Journey and Entrepreneurial Mindset
Paul Swaney, Director Managing of Swaney Group Capital and former Managing Director of Partners Group, shares his path from the Navy to McKinsey and Amazon to founding his private equity firm. He emphasizes the importance of lean systems in turning around businesses, highlighting his experience in optimizing operations.
Setting up Transformation Governance for Post-Acquisition Success
Swaney stresses the significance of establishing transformation governance post-acquisition to drive better outcomes for portfolio companies. By implementing a strategic plan with monthly financial and transformation committee reviews, companies can achieve sustained improvement and inject necessary changes effectively.
The Swaney Group Operating System for Value Creation
Swaney introduces the Swaney Group Operating System, based on principles like cost transformation, supply chain optimization, and revenue growth. This systematic approach aims to provide predictable outcomes in enhancing manufacturing output, procurement, pricing strategy, and expanding into new markets.
Utilizing Media for Deal Origination and Building Brand Awareness
Swaney discusses leveraging social media, particularly Twitter, for deal origination and branding efforts. He shares how professional content sharing led to a surge in followers, resulting in sourcing opportunities. By engaging with the online community and sharing insights, Swaney has enhanced both personal and firm branding for impactful results.
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!
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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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