The Private Equity Podcast, by Raw Selection

🎙️ The Private Equity Podcast — Episode with Graham Bachman, Hidden River Strategic CapitalGuest: Graham Bachman, Managing Director & Head of Business Development at Hidden River Strategic Capital Host: Alex RawlingsIn this episode of The Private Equity Podcast, Alex Rawlings is joined by Graham Bachman, who shares how Hidden River Strategic Capital is reshaping lower middle-market investing with structured capital—a hybrid approach that sits between debt and equity, allowing business owners to retain control while unlocking growth opportunities.Graham unpacks how Hidden River’s capital solutions serve founders not looking for full buyouts or rigid debt structures and instead prioritizes long-term partnerships with existing management teams. He also offers valuable insights into deal origination, the firm's philosophy on professionalization, and why education and consistency are key in a fragmented funding landscape.⏱️ Timestamps:00:00 – Welcome and guest introduction 00:29 – Graham’s background and why he joined Hidden River 01:56 – Hidden River’s investment focus and fund status 02:52 – Gaps in the lower middle-market funding landscape 03:47 – What is structured capital and why it matters 06:08 – Use cases for Hidden River’s structured solutions 07:32 – Supporting founder-led businesses without taking control 09:08 – How hands-on is Hidden River in company operations? 11:33 – How does Hidden River help with leadership development? 12:59 – Differentiation through relationship-first deal sourcing 15:51 – Graham’s reading list and media recommendations 17:22 – How to contact Graham 17:51 – Final thoughts and episode close💡 Episode Highlights:Structured Capital Defined: A tailored blend of debt and non-control equity designed to meet the needs of owners who don't want to sell or over-leverage.Flexible Approach: Hidden River typically backs existing management teams and helps them scale without stepping in to control day-to-day operations.Unique Deal Sourcing: In a buyout-dominated ecosystem, Hidden River differentiates through education, consistency, and relationship building.Founder-Friendly Philosophy: The firm supports founders who want capital to grow—not exit—and builds customized investment solutions to match.📚 Graham’s Recommended Reads:Thinking in Bets by Annie DukeThe Colossal Failure of Common Sense by Lawrence G. McDonaldGood to Great by Jim CollinsHow to Win Friends and Influence People by Dale CarnegieHoward Marks' memosThe Wall Street Journal📨 Connect with Graham: Email: gbachman@hiddenrivercap.com Website: www.hiddenrivercap.comRaw Selection partners with Private Equity firms and their portfolio companies to secure exceptional executive talent. We focus on de-risking executive recruitment through meticulous search and selection processes, ensuring top-tier performance and long-term success.🔗 Connect with Alex Rawlings on LinkedIn: https://www.linkedin.com/in/alexrawlings/ 🌐 Visit Raw Selection: www.raw-selection.com

Otis Spencer, a former U.S. Army logistics officer turned private equity CEO, shares his insightful journey from military to business leadership. He discusses key pitfalls in private equity, emphasizing the dangers of buying the wrong companies and the importance of effective diligence. Otis advocates for data-driven decision-making and highlights methodologies like Six Sigma and Kaizen for improving operations. He also covers the significance of assembling strong boards and the challenges in executing successful exit strategies for sustainable growth.

In this engaging discussion, Matthew Kearney shares his extensive 35-year journey in private equity, transitioning from investor to CEO. He reveals why the old mantra of 'buying right' is no longer relevant and highlights common pitfalls, like zombie portfolios. Kearney emphasizes the need for speed and pre-planned specialization to stand out in a competitive market. He also discusses talent strategies and the importance of reducing direct reports for optimal efficiency. His insights are a goldmine for anyone navigating the complexities of private equity.

Greg Nieuwenhuys, a Private Equity Advisor and AI expert with over 20 years in the industry, dives into the transformative potential of generative AI for private equity. He explains how it's distinct from traditional AI, focusing on its capacity to create content and drive strategic initiatives. Greg dispels myths about AI as a lengthy IT endeavor, emphasizing the need for leadership and team training. He also demonstrates voice prompting as a productivity tool and highlights innovative recruitment applications, showcasing AI's role as a powerful ally in business.

Nate Edgerly, CEO of Enzo Group Inc., shares his fascinating journey from CPA to private equity leader in hospitality. He discusses how empathy and culture drive exceptional leadership, revealing what separates the great CEOs from the rest. Nate highlights common pitfalls in private equity, stressing the importance of long-term strategies over quick gains. He also unveils Enzo Group’s innovative approach to democratizing investment in hospitality, making it accessible to individual investors and underscoring the significance of effective systems in the sector.

Join Jeff Zwiefel, former President & COO of Life Time, who expertly scaled the business from $139M to $2.3B. He delves into the significance of a people-first culture and why private equity often falters by ignoring leadership and employee development. Jeff discusses innovative hiring practices through 'casting' and the need for rigorous training programs. He also highlights trends in the health industry, including personalized wellness services, while revealing how to use leadership to foster accountability and growth.

Henry Ward, CEO and Co-Founder of Carta, shares his insights on revolutionizing private equity through technology. He discusses the urgent need for legacy firms to shift from financial engineering to operational strategies that add value. Henry reveals the challenges of scaling a billion-dollar business and the importance of innovation in navigating market risks. He emphasizes the role of cloud-based tools in enhancing efficiency and transparency in private equity, while advocating for a new approach that combines venture-style growth with classic private equity rigor.

David Feingold, CEO of Broad Street Global, shares insights from over 35 years in private equity. He emphasizes the importance of hiring for cultural fit rather than credentials, showcasing how effective listening fosters a supportive work environment. With zero attrition among 55 partners, he reveals the secret to team cohesion lies in decentralized control and empowering leaders. David also discusses the exciting intersection of infrastructure and crypto mining, revealing how strategic decisions can adapt to market demands.

James Varela, Partner at Rede Partners and Head of MENA, brings over 15 years of capital-raising expertise to the table. He discusses the evolving landscape of fundraising in the Middle East, emphasizing the importance of DPI metrics and GP credibility. Varela reveals that transparency and storytelling are vital for attracting investors. He warns against common mistakes such as lack of preparation and potential pitfalls in communication. With a focus on co-investments and strategic relationships, he offers insights into navigating this challenging environment.

Sequoya Borgman, founder of Borgman Capital, shares insights from his journey in private equity, emphasizing the importance of culture in founder-led acquisitions. He discusses the unique challenges of CEO transitions and why they prioritize people over processes. The strategic choice of independent sponsorship allows flexibility in deal-making, attracting retail investors. Borgman highlights the role of AI in enhancing efficiency and reveals how leveraging local networks is key to sourcing deals, providing a holistic look at navigating the private equity landscape.