Intentional Growth
#213: The Ultimate Guide on How Private Equity Works and Makes Money with Sunny Vanderbeck
In today’s episode, Sunny explains to us how the world of private equity operates, from the structure and lifecycle of the fund to considering a sale’s debt versus equity. We'll be delving into how private equity firms raise money, where the money comes from, what types of investors they work with, how the general partners of a private equity firm get paid, how they start the fund and what the fund structure looks like, and what the timeline means for the fund.
What You Will Learn In Today's Podcast Interview
- How private equity firms raise the money
- Where the money comes from and the types of investors
- How the general partners of the PE firm get paid
- How they start the fund and the structure of the fund
- How that fund structure buys platform companies and bolt-on companies
- What the timeline means for the fund and the partners
- What the lifecycle looks like from start to finish
- How this information relates to the Intentional Growth course
Are You Growing The Value of Your Business
His multiple exits, gives him unique expertise as a founder of Satori Capital, a private equity firm founded on the principles of conscious capitalism. By providing real-world insights from its experienced team and long-term funding with no fixed time constraints.
About the Guest:
Sunny Vanderbeck is an investor, entrepreneur, best-selling author, and former military leader focused on accelerating the growth of mid-market companies and creating best-in-class, built-to-last businesses.
Sunny is co-founder of Satori Capital, a multi-strategy investment firm founded on the principles of conscious capitalism. By providing real-world insights from its experienced team and long-term funding with no fixed time constraints, Satori acts as a true partner for its portfolio companies as it challenges them to pursue extraordinary outcomes for all stakeholder groups.
Quotes:
14:31 – “If I can sell a stock tomorrow, it’s theoretically worth a little more than if I can’t sell it for years.” – Sunny Vanderbeck, on liquidity premium
16:28 – “To put some precise language on it, in our case: so we manage a billion dollars, we don’t have a billion dollars. They’re very different things, I promise you.” – Sunny Vanderbeck
32:11 – “By and large, as companies get larger, they are more valuable. The markets seem to play that out, not always but generally true.” – Sunny Vanderbeck
44:45 – “Deeply understanding how your business generates or consumes cash, understanding how variable your cost structures are. That can help you understand, ‘Is debt an appropriate tool for what I’m trying to solve for?’” – Sunny Vanderbeck
Links and Resources:
Intentional Growth #170: How One Week Killed the Perfect Billion Dollar Deal with Sunny Vanderbeck
“Selling Without Selling Out” by Sunny Vanderbeck, Amazon
Mastering Your Cash Flow Digital Course
Reach out to me if you have questions about the boot camp!
You can also reach out to me via email at rtansom@arkona.io, on my LinkedIn.
