Deal Sourcery

Jay Jester, Partner at Plexus Capital and an ACG Legend Award winner, shares his wealth of knowledge on building effective business development (BD) teams. He discusses the evolution of sourcing in private equity and the pivotal role of establishing trust and rapport with investment bankers. Jay emphasizes that likability and genuine relationships fuel successful deals, advising on how to strategically choose banking partners. His insights challenge conventional views on sourcing, underscoring that BD should be a core component of the deal-making process.

Are you making cold calls but just not locking in enough deals? Compass Equity Group's Jonathan Babcock joins the show to explain how playing the long-game and developing a firm-wide culture of thesis lead business development has helped them win.Jonathan walks us through the Compass Method's 13-touchpoint outreach strategy and how it leads to deeper connections with business owners, keeps them competitive and wins deals.📍CHAPTERS: 00:00 – Intro02:30 – An Overview on the Compass Method and How to Stay Competitive07:30 – How a Thesis Driven Approach Can Set You Apart08:30 – Going from Idea to Fleshed Out Thesis10:30 – The Thesis Development Process12:45 – The Importance of Metrics in Thesis Development14:30 – Essential Information for Developing a Thesis17:45 – Centers of Influence & Key Relationship Building Techniques21:30 – How Do You Find Well-Connected People In Your Target Markets?23:00 – When to Start Direct Outreach 27:15 – Measuring Success29:00 – Advice for Starting at a New Firm📝 KEY TAKEAWAYS “People forget that people do deals with people they like.”“You have to have an angle, and it needs to be ingrained in the culture to do things in a differentiated way.”“Don't confuse activity with productivity. Metrics play a key role in identifying what stage you're at - is it moving forward?”“Leave the suit at the office. I do a lot of cold calls where the first ten seconds are crucial and you've got 10 seconds to show why you're reaching out, building credibility. But the most important part of that I've realized is, you don't spew out a bunch of industry knowledge you think you have - you try to build a relationship.”🔗 CONNECT WITH JONATHAN:LinkedIn: https://www.linkedin.com/in/babcockjonathan/#BusinessDevelopment #PrivateEquity #Thesis

If you’re getting started at a private equity firm in business development, this one's for you. Inspired by Dan’s viral LinkedIn post, you’ll get tried-and-true steps for crushing your first 90-days on the job: how to build your banker pipeline, optimize your time on the road and actually measure your success. Whether you’re the first sourcing hire at a fund or stepping into a seasoned team, this is your outline on how to hit the ground running and set yourself up for long-term success. Read Dan’s original LinkedIn post: https://www.linkedin.com/posts/danielherr_8-steps-to-success-in-a-new-pe-sourcing-role-activity-7287804951840399361-Dz7W/📍CHAPTERS: 00:00 – Intro & Origin of the 90-Day Framework03:30 – Who This Applies To04:45 – Days 1–30: Be a Sponge07:00 – Internal vs. External Messaging08:45 – Read the IC Materials Like Treasure Maps10:30 – Portfolio Company Primers13:15 – Days 30–60: Start Building Relationships16:45 – Prioritize Like an Investor21:30 – Build the Prospect & Banker Database23:00 – Days 60–90: Execute & Win Quick24:45 – Hit the Road: Why In-Person Still Wins29:00 – Metrics, Measurement & Accountability35:00 – Top 2 North Star Metrics for New BD Hires36:30 – Call to Action📝 KEY TAKEAWAYS “Before you're out there pitching everybody about how magical our firm is, it's diving into the nitty gritty of who are we, why do we win, where do we win, where do we lose.”“You go back through these old IC materials... there’s a lot of low hanging fruit that’s sitting in there for you to go tackle as a sourcing professional.”“You’ve got hundreds, thousands, millions of different things you need to be doing... Our number one job is prioritization.”“There’s still no proxy for that in person... The number of deals I’ve done because I got in front of someone. You just can’t replicate that over Zoom.”🔗 CONNECT WITH THE HOSTS:Dan Herr:  https://www.linkedin.com/in/danielherr/Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/Coastal Partners: https://www.coastalpartners.co/#BusinessDevelopment #PrivateEquity #NewHires

Joanne Verkuilen, Founder and Managing Partner at MiddleM Creative, shares her insights on transforming marketing in private equity. She discusses the alarming statistic that firms miss 80% of relevant deals due to outdated outreach methods. The conversation highlights the shift towards strategic, multi-channel marketing to enhance visibility and build trust with founders. Joanne emphasizes the importance of tailored messaging and genuine partnerships, arguing that effective brand strategies are essential for navigating today's competitive landscape in private equity.

Justin Smith, Managing Director of Business Development at Agellus Capital, shares insights on winning deals before they hit the market. He discusses the importance of relationship-building and effective communication with founders and buy-side advisors. Justin emphasizes the need for a robust business development infrastructure and tracking metrics to enhance deal-flow opportunities. He explores strategic banker engagement and the value of thorough pre-work for competitive auctions, revealing essential strategies for gaining an edge in a crowded market.

Is your compensation in line with your peers in private equity business development? Are you unsure of what the market standard is for base, bonus, and carry? Today we break down the highly anticipated 2024 Business Development Compensation Survey, offering crucial insights into current compensation trends, bonus structures, and the factors that truly influence your earning potential in the competitive world of PE deal sourcing. Get the data you need to benchmark your worth and understand the evolving landscape of BD compensation.CHAPTERS:00:00 - The Compensation Conundrum: Are You Paid Fairly in PE BD?01:11 - Unveiling the 2024 BD Compensation Survey: What's Inside?01:49 - Behind the Data: Survey Methodology and Participation Insights03:55 - Who Responded?: Demographics of the BD Compensation Survey06:23 - Lower Middle Market Dominance: Where BD Talent is Concentrated08:11 - Regional Hotspots: Northeast Still Leads in BD Professionals08:59 - Compensation Blind Spots: Why This Survey Matters09:39 - The Compensation Gap: BD vs. Investment Professionals11:14 - Diving into the Data: Key Compensation Takeaways for 202412:33 - Uniformity Across Titles?: Base Salary Increases by Seniority Level13:36 - Bonus Bumps and Deal Volume: A Correlating Trend?16:14 - Carry Allocation Trends: When Does Carry Kick In for BD Roles?19:55 - Decoding the Numbers: Base, Bonus, and Total Comp by Title23:24 - The Compensation Formula?: Regression Analysis and Key Drivers25:14 - Seniority Rules: Title as the Top Predictor of Base Salary27:31 - The Office Paradox: Days in Office and Compensation Correlation30:44 - Discretionary vs. Metric-Driven Bonuses: What's the Breakdown?33:56 - Success-Based Bonuses: A Smaller Piece of the Pie Than You Think35:53 - The Bonus Structure Shift?: Moving Towards Metric-Based Compensation?39:28 - Intermediary vs. Proprietary Sourcing: Impact on Bonus Structures?41:45 - Get the Full Report: Where to Dive Deeper into the Data42:33 - Stay Connected: Deal Sourcery and Coastal Partners ResourcesKey Takeaways:"We saw an 11% increase from 2023 base salary into 2024. And that's across all levels, seniority fund sizes. But you know, a healthy increase.""VP level and above is when it starts to be much more common to have a carry allocation.""Seniority level seems to be the primary indicator of like the most significant change in base compensation. And then fund size kind of behind that...""57% indicate that they only receive discretionary bonuses."🔗 CONNECT WITH THE HOSTS:Dan Herr: https://www.linkedin.com/in/danielherr/Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/Coastal Partners: https://www.coastalpartners.co/#BusinessDevelopment #PrivateEquity #CompensationSurvey

Ori Eldarov, the Founder and CEO of OffDeal, is transforming small business sales with AI-driven solutions that maximize value and simplify processes. He shares insights from Wall Street to entrepreneurship, highlighting how AI addresses the challenges of deal sourcing in private equity. Discover the scarcity of sellable businesses in the U.S. and the inefficiencies of traditional methods. Eldarov explains how OffDeal automates investment banking tasks, revolutionizing M&A and making transactions more accessible for small businesses.

Is your inbox flooded with generic PE outreach? Learn how to cut through the noise and connect with the right investors, as Raj Singh, AI founder and investor of Go Moment, Revinate and PEF Community fame, reveals his insider secrets to navigating the PE landscape and building authentic relationships that drive deals.Raj shares his firsthand experience navigating the flood of PE outreach, leveraging AI for smarter engagement, and what truly resonates with founders. Tired of generic outreach? Discover how to stand out, build trust, and make a lasting impression.CHAPTERS:00:00 - The AI Founder's PE Playbook01:31 - The AI Journey02:53 - Navigating the AI Hype Cycle07:25 - What is Go Moment?10:20 - The Billion Smiles Mission15:10 - First Exposure to Private Equity18:04 - Memorable vs. Frustrating Pitches20:51 - The Volume of Outreach21:37 - Email vs. Calls22:32 - Building Authentic Connections24:08 - Common Characteristics of High-Quality PE Outreach27:17 - The Impact of AI on Private Equity and Deal Sourcing27:50 - Will AI Take Our Jobs?31:43 - AI in Go-to-Market35:38 - Applying Go-to-Market Strategies to Private Equity Outreach38:21 - Misconceptions About AI Capabilities41:36 - Can AI Replace Human Relationships?45:52 - AI Generates Plausible Answers, Not Necessarily Correct Ones47:02 - Keeping a Human in the Loop47:48 - The Future of Raj49:51 - Final Words of Wisdom for PE Professionals50:59 - Private Equity in One Word🔗 CONNECT WITH RAJ SINGH:LinkedIn: https://www.linkedin.com/in/rajsinghla/

Discover the story of how Campminder's CEO, Dan Konigsberg, built a wildly successful, values-driven company culture, attracting both top talent and ideal investors. Learn how to move beyond generic outreach and create a magnetic force that draws the right partners to you.Dan shares his journey, revealing the crucial role of authentic core values in building a sustainable business. This episode is a must-listen for entrepreneurs, CEOs, and anyone seeking to create a thriving workplace.Chapters:00:00 - Navigating Peak Operational Seasons02:24 - Comprehensive Camp Management Solutions03:48 - Leveraging Facial Recognition for Engagement05:36 - Bootstrapping to Longevity14:36 - The Role of Authentic Core Values19:50 - Creating Alignment Through Core Values23:54 - Culture as a Competitive Advantage27:18 - Defining and Upholding Company Values32:27 - Choosing Value-Aligned Investors40:20 - Long-Term Thinking for Sustainable Growth45:26 - Transparency in Leadership Transitions48:46 - Evaluating Culture During Mergers and Acquisitions54:10 - Adding Value Beyond Capital57:12 - Authentic Outreach in Private EquityConnect with Dan:LinkedIn: https://www.linkedin.com/in/dankonigsberg/Campminder: https://campminder.com/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/#CompanyCulture #ValuesDrivenBusiness #PrivateEquity

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 Rankin01:18 - Early Private Equity Exposure05:14 - Evaluating Private Equity Partners10:32 - Evolution of Private Equity Outreach19:46 - Partnering with Insight Partners25:02 - Human Connection in Deal Sourcing33:02 - Data-Driven Sourcing Precision40:20 - Authenticity in Business Relationships0:45:46 - What the future holds for Lane0:48:37 - Lane’s ideal business partner0:50:36 - Building relationships with high quality CEOsLinks: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/