Human-to-Human Deal Sourcing: Winning in the Future of Private Equity with Lane Rankin

Dec 17, 2024

Lane Rankin, Founder of Illuminate Education, shares his transition from educator to EdTech entrepreneur. He emphasizes the vital role of human connection in private equity, advocating for a shift from transactional approaches to relationship-driven deal sourcing. Lane discusses the challenge of authenticity in the cutthroat private equity culture and promotes vulnerability as a way to build trust. He highlights the importance of storytelling and genuine curiosity when engaging with founders, ultimately aiming for purpose-driven investing that prioritizes shared values.

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INSIGHT

Lead With Defined Personal Values

Lane frames his daily purpose around being kind, generous, courageous and curious wrapped in love.
Defining personal values first guides how he shows up in business and deals.

ANECDOTE

First Exposure To Big Deals

Lane's first exposure to dealmaking came during the Houghton Mifflin Harcourt acquisition and synergy meetings.
He learned early how large transactions and organizational combinations work from the inside.

INSIGHT

Founders Often Fear PE Culture

Early entrepreneur stories painted private equity as cutthroat and founder-unfriendly.
Those perceptions shaped Lane's initial reluctance to take outside capital.

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Lane Rankin, Founder of Illuminate Education, joins us to share his incredible journey from educator to EdTech entrepreneur. Along the way, he reveals the secrets to engaging founders, the importance of genuine human connection in private equity, and his vision for a more supportive future for the industry.

If you’ve ever found yourself becoming frustrated with the impersonal, transactional nature of private equity outreach, this episode is definitely for you as Lane exposes the flaws in traditional approaches and champions a new era of relationship-driven dealmaking.

Join us today and discover how prioritizing shared values, vulnerability, and authentic curiosity can unlock unprecedented levels of trust and lead to mutually beneficial partnerships.

Key Insight [0:46:46]: "I really am focused on how do I continue to be a good elder...being someone that's helpful to people that are trying to do good things in the world." Learn how to shift your mindset from pure profit to purpose-driven investing as Lane shares his criteria for selecting ideal business partners.

Potential Pitfall [0:04:31]: "My first impression, honestly, was just hardcore money people...pretty cutthroat. Didn’t really care about the founders, didn’t really care about the products, just really cared about how much money can we make and how fast can we make it." Lane addresses the common fear of founders losing control and purpose when partnering with private equity, offering insights into how to identify firms that prioritize long-term value creation.

Strategic Approach [0:32:03]: "Four meetings. Four LOIs. That's it right there." Lane reveals how targeted outreach, based on deep research and genuine connection, can dramatically improve your success rate in deal sourcing. Discover how to identify your ideal partners and craft compelling outreach that resonates with their values and aspirations.

Practical Tip [0:54:01]: "If you were to look at my contacts right now...I know everybody's...birthday anniversaries, kids names...Because when I get back on the phone with that person, I'm going to be like, ‘Hey, last time you mentioned...’" Lane emphasizes the power of remembering personal details to foster deeper connections. Learn how this simple yet powerful tactic can differentiate you from the competition and build lasting relationships.

CHAPTERS:

00:00 - Guest Introduction: Lane Rankin

01:18 - Early Private Equity Exposure

05:14 - Evaluating Private Equity Partners

10:32 - Evolution of Private Equity Outreach

19:46 - Partnering with Insight Partners

25:02 - Human Connection in Deal Sourcing

33:02 - Data-Driven Sourcing Precision

40:20 - Authenticity in Business Relationships

0:45:46 - What the future holds for Lane

0:48:37 - Lane’s ideal business partner

0:50:36 - Building relationships with high quality CEOs

Links:

Dan Herr: https://www.linkedin.com/in/danielherr/

Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/

Coastal Partners: https://www.coastalpartners.co/

Lane Rankin: https://www.linkedin.com/in/lanerankin/

Illuminate Education: https://www.illuminateed.com/