Best But Never Final: Private Equity's Pursuit of Excellence

In this episode, hosts Lloyd Metz, Doug McCormick, and Sean Mooney are joined by Paul Ryan, former Speaker of the House, now a partner at Solamere Capital. Speaker Ryan delves into his transition from a distinguished career in public service to the private equity sector, highlighting his enduring passion for economics and his strategic choice to focus on lower middle market private equity. The discussion explores the unique value private equity brings to liquidity provision, business growth, and its broader economic impact. He also shares his perspective on the current political landscape, regulatory shifts, labor supply significance in manufacturing, and the critical role of private equity in economic stabilization and growth. This episode not only sheds light on Speaker Ryan's journey from Capitol Hill to capital growth but also on the intersection of policy, economics, and private equity's influence on business and society.Episode Highlights • 2:48: Ryan's transition to private equity and focus on lower middle market. • 14:17: Discussion on business owners' perspectives on private equity partnerships. • 18:08: The convergence of policy, economics, and private equity. • 24:42: The importance of labor supply and immigration policy for economic growth. • 31:10: The role of private equity in stabilizing and enhancing the economy. • 37:28: Advice on communicating the value of private equity to policymakers. • 40:09: Final thoughts on the future economic outlook and potential risks. For more information on Solamere Capital, go to https://www.solamerecapital.com/For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

In this encore presentation from February 20th, Lloyd Metz, Doug McCormick, and Sean Mooney discuss the strategic considerations behind exiting a private equity investment. With an anticipated wave of deals in the coming year, understanding when to sell and how to do it effectively is crucial. This episode covers the importance of exit timing, various exit mechanisms including dividend recaps, partnership deals, and ESOPs, and how to prepare for a successful sale. Whether considering selling now or seeking insights into exit strategies, this episode provides valuable information on making informed decisions that maximize returns.Episode Highlights:2:34 - Discussing the impact of timing on returns and market challenges.8:14 - Approaches to building a business that attracts buyers.19:23 - Ways private equity firms return capital and extend company options.34:51 - Exploring ESOPs as a tool for incentive alignment and employee empowerment.38:28 - Common pitfalls in the exit process and the importance of early preparation.43:35 - Final thoughts on skills for successful ownership and selling.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

Lloyd Metz, Doug McCormick, Sean Mooney, and operating partners Mary Rachide from ICV and Bob Hund from HCI delve into value creation in private equity. They discuss the role of operating partners in enhancing portfolio company growth, from due diligence to strategic execution. The episode covers aligning company vision with actionable strategies, the importance of stakeholder collaboration, and the balance between innovation and risk management. Mary and Bob share their experiences in driving transformation and the challenges and rewards of their roles in achieving exceptional outcomes.Episode Highlights1:25 - Introduction to value creation and the role of operating partners.1:52 - Mary Rachide outlines her path to becoming an operating partner at ICV, focusing on strategy and execution.3:33 - Bob Hund discusses his journey to HCI, emphasizing process improvement and risk mitigation.6:45 - The integration of operating partners in due diligence and value creation planning.15:18 - Managing stakeholder collaboration and communication within the private equity ecosystem.37:39 - The rewarding aspects of being an operating partner, including working with entrepreneurs and seeing tangible results.44:48 - Challenges of the role, such as prioritizing initiatives and navigating change management.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

Lloyd Metz, Doug McCormick, and Sean Mooney share pivotal experiences from their private equity careers, focusing on due diligence surprises, the impact of personal challenges on professional relationships, and complex business scenarios. They emphasize the importance of comprehensive background checks, cultural sensitivity in international deals, and strategic problem-solving in high-stakes situations. This episode provides insights into the nuanced world of private equity, where unexpected challenges often lead to valuable lessons.Episode Highlights:2:11 - Lloyd Metz emphasizes the necessity of thorough background checks with a story about a CEO's undisclosed past.5:08 - Doug McCormick discusses the significance of transparency and trust in forming business partnerships.10:21 - The importance of open communication in overcoming personal and professional challenges is highlighted.22:55 - Lloyd shares a challenging experience with a corporate carve-out in Japan, stressing cultural sensitivity.33:41 - Doug talks about managing complexity in deals and the strategic value of risk mitigation.42:20 - Sean recounts overcoming a supply chain challenge through innovation and strategic negotiation.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

In this episode of 'Best But Never Final,' Lloyd Metz, Doug McCormick, and Sean Mooney discuss the importance of strategic talent management in private equity. They explore the transition from traditional HR to advanced human capital strategies, emphasizing the critical role of hiring, team building, and organizational design in driving business success. The conversation covers practical strategies for hiring, including preparation, execution, and effective onboarding, providing private equity professionals with insights to leverage human capital for competitive advantage and sustainable success in their portfolio companies.2:20 - The critical role of human capital in private equity.4:16 - The shift from financial arbitrage to business transformation through talent.10:39 - Preparing for successful hires with a detailed scorecard and aligning talent strategy with business goals.16:32 - Utilizing specialized recruiters and assessment tools for optimal cultural and skill fit.26:23 - Innovative onboarding practices for new hires' success.33:28 - Leveraging hiring advisors and assessment firms for deeper candidate insights.41:04 - Tips and pitfalls in hiring, emphasizing quick decision-making and systematic approaches.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

In this engaging episode of 'Best But Never Final,' hosts Lloyd Metz, Doug McCormick, and Sean Mooney welcome David Freed, a seasoned professional with extensive experience across the private equity, technology, and operational landscapes. Freed shares his journey from operating roles within portfolio companies to co-founding CP Energy Holdings, focusing on carbon reduction investments. The discussion delves into the strategic use of technology to drive business growth, the importance of cybersecurity, and the necessity of embracing technological advancements to stay competitive. Freed's insights offer valuable lessons on integrating technology with business strategy to achieve sustainable success in today's rapidly evolving market.Episode Highlights2:06 - Introduction of David Freed and his diverse background in technology, operations, and private equity.6:19 - Freed's transition from Eight Rivers to HCI and the challenges of integrating technology in traditional industries.16:55 - The role of technology in driving value creation and operational efficiency at MSI, a portfolio company.26:11 - The defensive and offensive uses of technology in business, from cybersecurity to enabling growth.44:30 - Freed's approach to evaluating and implementing technology in SMBs to fuel growth and innovation.53:59 - The risks of ignoring technological advancements and the importance of proactive adoption for competitive advantage.For more information on Critical Point Holdings, go to https://cpeh.com/For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

We're in the heart of private equity's busiest season with Lloyd Metz, Doug McCormick, and Sean Mooney in this episode of 'Best But Never Final.' They tackle the fall deal rush, a period brimming with new deals and rigorous due diligence. The hosts share insights on efficiently assessing opportunities, focusing on key tools like Quality of Earnings Reviews, market studies, and management assessments. This episode is a must-listen for those new to the private equity deal rush, offering a clear view of the strategies and challenges involved in due diligence and value creation.Episode Highlights:1:53 - The fall deal rush in private equity explained, highlighting its significance.5:47 - The pivotal role of Quality of Earnings Review in evaluating company performance.7:37 - Importance of market studies for understanding competitive landscapes and growth potential.12:10 - Why management assessments are crucial for gauging leadership effectiveness.17:12 - The private equity firm's role in synthesizing due diligence findings into actionable strategies.34:47 - Discussion on the importance of legal, IT, and insurance due diligence in the transaction process.46:10 - Reflections on the predictive power of due diligence in investment success and the value of management alignment.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

Join Lloyd Metz, Doug McCormick, Sean Mooney, and special guest Rob Brown, CEO of Lincoln International, as they discuss the significant changes in private equity and investment banking from the early 2000s to today. This episode covers the pivotal role of company culture in driving growth, adapting to economic shifts, and the strategic use of technology and talent acquisition during downturns. Listen for an in-depth analysis of market trends, the impact of COVID-19, and predictions for the M&A landscape's future.Episode Highlights:2:09 - Rob Brown reflects on the transformation of private equity and investment banking since the 2000s.7:12 - The growth story of Lincoln International and the critical role of culture.16:55 - Economic trends post-2008 and adjustments leading up to the COVID-19 era.26:05 - The significance of office presence for culture and mentorship.32:54 - Utilizing downturns for talent acquisition and investing in AI.40:58 - Current M&A market conditions and expectations for recovery in 2025.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

Explore the critical aspects of capital structure in the private equity sector with insights from Lloyd Metz, Doug McCormick, and Sean Mooney. This episode breaks down the strategic use of debt versus equity, the implications of leveraging, and the nuances of maintaining lender relationships. It offers a focused look at how private equity professionals navigate risk and optimize returns through smart capital structure choices, essential listening for investors and business owners aiming to understand the financial underpinnings of successful investments.1:18 - Introduction to the importance of capital structure choices in private equity. 3:16 - Exploring the balance between risk and return in optimizing capital structure.6:43 - The leverage effect of using debt in private equity explained through a home-buying analogy.12:14 - Strategies behind determining the amount of debt to use in private equity investments.21:29 - Discussion on the types of lenders and the evolving lending landscape. 33:29 - The influence of capital market health on debt cost and the call for simplicity in capital structure decisions.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

In this episode of Best But Never Final, join Lloyd Metz, Doug McCormick and Sean Mooney as they delve into the seasonal nuances of the private equity world during the summer months. This episode offers a candid look at how private equity professionals balance the demands of work with personal time, reflecting on the impact of summer on investment activities and portfolio management. From discussing the rhythm of deal flows to sharing personal strategies for recharging, the trio provides insights into how the industry adapts and plans for the latter half of the year amidst the backdrop of recurring seasonal patterns and unexpected market dynamics.Episode Highlights:0:37 - Introduction to the seasonal dynamics of private equity during summer.1:59 - Personal reflections on summer activities and balancing work with family time.5:08 - Insights into how private equity professionals navigate the quieter deal market of summer while staying prepared for the bustling activity post-Labor Day.8:23 - Discussion on the cyclical nature of deal flows and portfolio company initiatives throughout the year.15:01 - Examination of how summer provides a strategic pause for reflection and planning ahead of the busy fall season.19:33 - Consideration of external factors, such as election years, that can influence private equity activities and market sentiment.25:20 - Anticipation of deal market recovery and the readiness of lenders to support transactions in the latter half of the year. This episode is an invaluable resource for anyone interested in understanding the ebb and flow of the private equity industry and how professionals within the field strategically navigate these seasonal shifts. Join us for a thoughtful discussion on making the most of the summer slowdown while gearing up for the opportunities and challenges that lie ahead.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net