Private Equity Podcast: Karma School of Business

In a rapidly changing economy, private equity firms have shown remarkable resilience and adaptability. Insights reveal how these firms navigate disruptions using strategic decision-making frameworks like OODA loops. Key trends include a surge in technology investments, particularly in AI, along with shifting consumer sentiments. The discussion also touches on the impact of tariffs on manufacturing and trade, while a positive outlook for future growth signals increasing market activity. It's a compelling look at how private equity is poised for long-term success.

Ben Gaw, Partner and Head of Portfolio Operations at Cross Rapids Capital, shares his inspiring journey as a first-generation immigrant to becoming a leader in private equity. He discusses key strategies for identifying growth opportunities in mismanaged companies and emphasizes the importance of agile decision-making. Gaw highlights the role of soft skills and servant leadership in building high-performing teams. Transforming challenges into successes, he underlines the need for collaboration and effective resource allocation to drive immediate growth.

Dave Shepherd, Director of Portfolio Operations at Rainier Partners, shares insights from his journey at West Point to private equity. He discusses how military lessons instilled grit and resilience, emphasizing leading without authority. Dave explains Rainier Partners' value creation process, blending strategy and operational improvements. He highlights the foundational role of data and AI, advocating for small, impactful starts. Lastly, he encourages continuous learning and curiosity as vital tools for growth in both personal and professional domains.

Lloyd Metz, a seasoned partner at ICV Partners, and Doug McCormick, a specialist at HCI Equity Partners, discuss transforming private equity board meetings into strategic platforms. They emphasize focusing on impactful outcomes rather than routine reporting. The duo shares insights on structuring boards, selecting independent directors tailored to business needs, and the importance of avoiding tactical details in favor of actionable strategies. Engaging discussions around effective governance and fostering meaningful dialogue also take center stage.

Vinay Kashyap from Mainsail Partners shares insights on evaluating bootstrap B2B software companies with robust growth potential and durable value propositions. He emphasizes the importance of resourceful entrepreneurs and relationship-building in investment decisions. The conversation also highlights innovative evaluation techniques like using a 'red team' for rigorous analysis, assessing founder-led businesses, and the necessity of strategic foresight in fostering scalability and resilience in companies.

Richard Fitzgerald, Co-Founder and Managing Partner at CapitalSpring, shares insights from his extensive career in private equity focusing on franchise and multi-unit businesses. He discusses the importance of sector specialization and building trust with partners. Richard reflects on lessons learned during the pandemic, emphasizing resilience and kindness in business. He offers practical advice for younger professionals, highlighting the art of balancing debt and equity solutions to foster growth in a competitive landscape.

Brooke Ablon, Co-Founder and Partner at Fort Point Capital, specializes in lower middle market buyouts. He discusses his unconventional journey from psychology to private equity, emphasizing the lessons gained from distressed investing. Brooke reveals Fort Point’s investment criteria and how strategic add-ons can enhance company value. He highlights the power of data analytics in uncovering hidden margins and stresses the importance of proactive management. Finally, he compares private equity careers to marathons, underscoring the value of patience and strategic thinking.

Brian Neider, Managing Partner at Lead Edge Capital, draws from 20 years in private equity to share compelling insights. He discusses how 20,000 cold calls shaped their investment strategy and reveals the unique 8-point framework for evaluating opportunities. Neider emphasizes the role of data discipline in enhancing portfolio performance and how Lead Edge's strong LP network contributes to value creation. With practical advice for early-career professionals and life hacks for productivity, he inspires listeners to treat their time and decisions as valuable investments.

In this episode of Karma School of Business, Sean Mooney speaks with Don McDonough, Managing Director at GTCR, about his career in private equity and his role in building GTCR’s business development function. Episode Highlights: 1:24 - Path to Private Equity: Don’s journey from investment banking to private equity and his early career experiences. 4:56 - Leadership Lessons: How sports and teamwork shaped Don’s approach to leadership and problem-solving. 10:09 - Building a New Role: Challenges and strategies in developing GTCR’s business development function. 27:04 - Value Creation Themes: GTCR’s focus on technology, AI, and proactive risk management strategies to drive portfolio growth. 33:02 - Advice to Younger Self: Don’s insights on identifying strengths, following passions, and seeking mentorship. For more information on GTCR, go to https://www.gtcr.com/ For more information on Don McDonough, go to https://www.linkedin.com/in/don-mcdonough-a6a3611 For more information on BluWave and this podcast, go to https://www.bluwave.net/podcasts/

Dave Schnadig, Co-President of Cortec Group, shares his fascinating journey from a family-run business to a leader in private equity. He discusses the importance of an 'all-in' mentality for success and dives into the gripping story of Yeti's turnaround. Dave elaborates on how smart decisions and innovation can overcome challenges like tariffs. He also emphasizes the need for work-life balance and how curated family adventures can enrich one's life, reminding us that experiences matter just as much as business success.