Practical Founders Podcast #132: Bootstrapper Serving Private Equity Firms Acquired by PE-Backed Strategic – Richard Change
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Feb 21, 2025 Richard Change, co-founder and CEO of PFA Solutions, shares his inspiring journey of bootstrapping a software company that revolutionized carry and compensation management for private equity firms. He discusses the complexities of private equity integration post-acquisition and reflects on key operational changes. Richard emphasizes the shift from consulting to SaaS, illustrating how trust and credibility were crucial in navigating the private equity landscape. The conversation highlights the importance of strategic support beyond funding and the challenges of maintaining independence in a larger organization.
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Data Management Issues at Carlyle
- Richard Change, while at Carlyle, was asked for a list of all their investments.
- Surprisingly, no single system tracked this, revealing an industry-wide data management problem.
Bootstrapping PFA Solutions
- Richard Change left Carlyle with colleagues, motivated by an observed industry gap and his wife's pregnancy.
- They bootstrapped with consulting, leveraging their industry knowledge and network.
Be Humble and Adapt
- Don't assume your initial idea is perfect; be open to adapting based on market feedback.
- Richard Change's 'no-brainer' performance management module wasn't as successful as carry management.