Built to Sell Radio Ep 518 Growth Equity, Control, and When Rolling Equity Fails — John Ruffolo (Inside the Mind of an Acquirer)
Oct 31, 2025
John Ruffolo, Founder and Managing Partner of Maverix Private Equity, shares his journey from accounting to tech investing. He discusses the stark differences between growth equity and traditional buyouts, highlighting how growth equity allows founders to retain control while securing liquidity. Ruffolo offers insights into how equity rollovers can fail due to aggressive cost-cutting and debt issues. He also emphasizes the importance of understanding pre- and post-money valuations and advises on leveraging debt before turning to equity for financing. A must-listen for founders!
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Where Growth Equity Fits
- Growth private equity sits between venture and buyout by funding scale risk rather than tech risk.
- Mavericks typically takes 15–30% minority stakes focusing on organic growth without adding debt.
Don't Mix Dual Exit Processes
- If you entertain both buyout and growth equity at the same time, pass on growth investors who want minority stakes.
- Assume rollover equity pays nothing and make sure you're satisfied with the cash proceeds you receive now.
Protect Rollover Equity Legally
- Spend on strong legal advice before rolling equity and scrutinize share classes and shareholder agreements.
- Don't go cheap on advisors because preferred shares or control rights can wipe out common rollover value.