The Private Equity Podcast, by Raw Selection

Introducing Pari Natarajan Pari Natarajan is the CEO of Zinnov LLC, a leading Management Consulting firm that helps organizations globalize their businesses, tackle organizational challenges & build institutional capability. Pari and his team assist technology companies in improving their engineering efficiency and innovation capabilities through the effective use of globalization. He also works with large enterprises to help them build their internal technology organization and transform them into digital enterprises.What You Will LearnThe Basics of Value Creation in PE DealsWays PE Firms Can Successfully Transition a Business to a SaaS ModelHow AI is Revolutionizing the Private Equity SpaceBreakdown[00:45] Getting to Know Pari Natarajan [01:20] Common Mistakes by PE Firms and Their Portfolio Companies[02:37] Investment Opportunities for PE Firms in 2023[05:03] Steps to Successfully Transitioning to a SaaS Model[06:31] Why the Tech Industry is so Attractive for PE Firms[09:35] Technology Adoption in Private Equity[14:41] AI in Private Equity and What it Means for the Industry[19:17] Understanding the Core Aspects of Value Creation in PE Deals[22:26] Why Growth is Risky Business in Private Equity[24:57] Things Pari Likes and Dislikes About Private Equity[26:50] Pari's Go-To Self-Improvement Resources[27:31] Parting Thoughts Investment Opportunities for PE Firms in 2023Most private equity investors agree that 2022 was an okay year for PE firms. And with inflation and volatility still an issue in this economy, we could still have unique opportunities in 2023. That said, Pari believes PE firms should focus more on industries that provide recurring revenue streams. However, the SaaS model of selling subscription-based products is no guarantee of success. Companies with a concrete SaaS model are valued much higher than companies without a subscription model. Plus, the steep incline in PE firms buying SaaS means competition for well-functioning companies is high. But with proper research, you can still find companies worth investing in, recapitalizing, and outright buying in 2023. AI In Private EquityAI use is hot right now in almost every industry. Private equity is the latest industry to experience an AI takeover as more businesses look to take advantage of the practical applications of AI in business growth. As Pari explains, most PE firms are using AI to improve the state of their workflows and increase efficiency in day-to-day tasks. He highlights that AI in private equity falls into these three major buckets: Deal sourcing: AI can identify potential investment opportunities by analyzing large amounts of data from various sources, including social media, news articles, and industry reports. Automate Manual Processes: Most processes in private equity firms are outdated and inefficient, with many of them manual. PE firms can streamline workflows by using AI to automatically update these processes and facilitate the transfer of data instantaneously with little to no manual intervention.Performance Through Systems of Intelligence. AI can help private equity firms optimize the performance of their portfolio companies by analyzing large amounts of data and identifying opportunities for improvement. How to Contact PariPari's LinkedIn :  https://www.linkedin.com/in/parinatarajanzinnov/  

Matthew Carr is the Co-Founder and Head of Research & Technology at Atum Cell - a firm that provides leading-edge cybersecurity software, hardware, and services for companies and government agencies in North America and Europe. He is an award-winning cybersecurity researcher and penetration tester specializing in cyber threat management. He held senior positions in security at IKEA, IBM, and SecureLink, where he built a strong base of real-world experience.What You Will LearnThe Rising Number of Cyber Attacks on Private Equity Best Practices and Why All PE Firms Need to Build a Cybersecurity CultureCommon and Emerging Cyber Threats Currently Plaguing PE Firms Breakdown[00:45] Getting to Know Matthew Carr [02:13] Common Mistakes by PE Firms and Their Portfolio Companies [04:19] Types of Cyber Attacks Targeting PE Firms[07:51] Cybersecurity Threats and Vulnerabilities in Private Equity[11:22] How PE Firms can Build and Implement a Cybersecurity Culture[15:00] Easy Ways to Improve a PE Firm's Cybersecurity[19:26] Take This One Action Step to Protect Yourself Against Cyber Threats[22:45] Reasons Why Cybersecurity Awareness Training is Important[27:15] Matthew's Go-to Self-Improvement Resources[28:52] Parting ThoughtCommon Cybersecurity Attacks in Private Equity Although cybersecurity is a big concern in almost all industries, cyber attacks on PE firms have increased in recent years. Interestingly, the threats are not only a problem for firms with deep pockets but extend even to small upcoming companies. For a PE firm, data breaches can have business-ending consequences. For example, they spook investors, negatively impact valuations, and damage a firm's reputation. According to Matthew, these are some of the most common ways hackers target PE firms.●        Social Engineering - This is the simplest and most common attack in PE right now. Attackers use psychological manipulation to gain access to confidential information or resources.●        Known Vulnerabilities - Expert attackers leverage known vulnerabilities in a system to gain access to a PE firm's data. A typical loophole is outdated systems. Matthew explains that using outdated software presents numerous security vulnerabilities that put your data and business at risk.●        Zero-Day Vectors - Zero-day attacks stem from an operating system or computer software flaw unknown to the software's publisher. The term "Zero-day" is scary because it is unknown, and there is no patch or antivirus for this vulnerability.●        Zero-Click Attacks - These attacks are fully remote and provide access to a victim's data in real time and without any action from the target. Zero-click attacks are dangerous because they can take place without the victim clicking on a malicious website or app.Other Media ReferencesAtomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones by James Clear The Slight Edge by Jeff OlsonHow to Contact MatthewAtumcell.comMatthew's LinkedIn Matthew's email address - M@atumcell.com

Introduction to StephenStephen Madsen was the Director of Business Development & Capital Markets at Monomoy Capital Partners, a private investment firm with over $2.7 billion in assets under management. Monomoy invests in the equity and debt of manufacturing and distribution businesses that can benefit from operational and financial improvement. Stephen specializes in mergers & acquisitions, deal sourcing, private equity relationship management, and B2B relationship management. What You Will LearnThe Rise in Deal Origination in Private EquityWays to Build a Deal Origination Team From ScratchWhy You Need to Take Notes in Private Equity Breakdown[00:47] Introducing Stephen Madsen[03:48] Biggest Mistakes by PE Firms and Their Portfolio Companies[06:59] Why Deal Origination is Such a Big Thing in Private Equity[09:54] Should You Have a Separate Deal Origination Team?[14:03] Benefits of Building a Standalone Business Development Team[17:10] More Versus Less Information in Deal Origination[21:26] Steps to Forming a Strong Intermediary Relationship [25:13] ROI on a Typical Business Development Relationship[28:40] How to Measure the Success of Your Deal Origination Efforts[33:10] Taking Notes and Why It's Important [35:50] Things That Define a Top Performing Individual [38:17] What Stephen Likes and Dislikes About Private Equity[43:10] Parting Thoughts What is Deal Origination in Private Equity? Deal origination in private equity refers to the process of identifying, sourcing, and evaluating potential investment opportunities in private companies. This typically involves a combination of market research, networking, and outreach to entrepreneurs and business owners. The goal is to find businesses with attractive growth potential, strong management teams, and clear pathways to generating returns for investors. According to Stephen, deal origination is a key component of a private equity firm's investment strategy, as it helps them identify and secure attractive investment opportunities. Why You Need to Have Intermediary Relationships in Private Equity Intermediary relationships in private equity are important because they provide access to a wider pool of investment opportunities. Stephen explains that they also help build a strong network of contacts. Intermediaries often have deep connections within the business community and can help private equity investors identify attractive investment opportunities they may have yet to be aware of. Additionally, these relationships can provide valuable insight into industries, market trends, and other factors that can impact investment decisions. Stephen believes these types of relationships can make or break the chances of a PE firm achieving long-term success.  How to Reach TimStephen's LinkedInMonomoy Capital Partners ​​Thank you for tuning in!To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.

Introducing Chris AyalaChristopher Ayala is the Managing Director of Drum Capital Management, a specialized investment management firm dedicated to deep value, lower middle market investment opportunities, including special situations, turnaround, and restructuring strategies. Chris and his team have invested over $1.3B in an array of direct equity positions, co-investments in operating businesses, and fund investments in high-quality, sector-focused private equity funds. What You Will LearnTips For Effective Communication in Private EquityThe Psychology of Exiting a BusinessBusiness Operations in Private Equity Breakdown[00:45] Getting to Know Chris Ayala[03:50] Why Chris Moved from Business Operations to Private Equity[06:20] Becoming a Better Investor and Closing More Deals[09:36] Things Chris Misses the Most About Operations[12:35] How to Become a Better Leader in PE[16:20] Opportunities in the Building Products Space[20:11] Things Chris Likes and Dislikes About Private Equity[23:46] Chris' Go-To Self-Improvement Resources[25:52] Parting Thoughts  How to Become a Better Leader in Private EquityPrivate equity leaders play a crucial role in their firms' success. According to Chris, effective communication is one of the most important skills a leader can possess in PE. It helps ensure that everyone is aligned with the firm's goals and working together to achieve them. If you're new to a role or an organization, you need to over-communicate from day one. Understand that everybody around you wants to know what's going on. So you need to have an open line of communication. This doesn't mean oversharing because too much information can be overwhelming. But they need to know the firm's performance, strategy, and goals. This will help your team feel more engaged and invested in the firm's success. How to Contact ChrisChris on LinkedInConnect with Chris via email: Ayala@Drumcapital.comDrumcapital.comCall or Text 9176562963​​Thank you for tuning in!To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com. 

Introduction to TimTim O’Reilly is the Founding Chief Financial Officer of Frontier Service Partners and is a well known transformational leader in the sphere of trade and private equity organizations. Tim has served to help organizations set themselves up for long-term growth, becoming a beacon for companies to adapt to their respective markets. Aside from his multiple leadership roles across the industry, Tim also has a background for taking his MBA and Accounting undergrad course at the University of Central Florida. What You Will LearnNew Solutions for Greater Returns to InvestorsHow to Set Your Businesses Long-TermTechnology and Software, as well as Industrial Service-Based Industry Breakdown[00:28] Introduction of Tim[05:28] Mistakes and Solutions in PE[10:31] Insights on Tech and Industrial Service-Based Industries[18:50] Challenged and Success Encountered[28:04] Integration of Multiple Organizations for Long-Term Growth[37:52] Media Influences of Tim[45:33] How to Reach Tim[46:30] Attributes That Make a Top Performer Technology and Industrial Service SectorAs a veteran in the industry, Tim shares his experience working for PE-backed organizations in the technology and industrial service-based industry. The industry is rapidly changing and the dynamics of customers and products often change overtime. Tim elaborates that these changes will not slow down and the companies in the industry need to adapt fast in order to project themselves long term with their partners. The Long Road AheadTim shares his strategy for companies in the tech and industrial service industry. The strategies he mentions are aimed towards setting up the companies for at least 3 to 5 years of growth. These include generating a thesis to market their products and services, getting the right people on board to establish the proper work culture, knowing your customers and partners to have a deeper understanding of the products you are selling, and having that creative mindset that could set you apart from your competitors and attract more investors. Other Media ReferencesPrivate Equity Playbook by Adam CoffeyThe Exit Strategy Playbook by Adam Coffey Seven Habit of Highly Effective People by Stephen CoveyThe First 90 Days by Michael watkinsCapital Gains: Smart Things I learned by Doing Stupid Stuff by Chip Gains Alexander Hamilton by Ron Chernow  How to Reach TimTim’ LinkedinTim’s FacebookTim’s Email: tim.oreilly@frontierservicepartners.com ​​Thank you for tuning in!To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.

Introducing Salvatore M. Buscemi Salvatore M. Buscemi is the CEO and co-founder of Dandrew Partners - a private family investment office that has managed money successfully for almost 20 years by creating multiple portfolios on various cross-asset platforms. Sal is a frequent speaker and guest lecturer on real estate finance at professional symposia. He has written numerous books and articles on real estate and private equity finance in various publications, including Investor's Business Daily and Forbes, and on television shows such as CBS New York and Good Morning LaLa Land. What You Will Learn Ways VC Firms Can Improve Their Portfolio Company's Brand Awareness What to Expect From Silicon Valley Bank's Abrupt Closure How the .001% of People Invest  Breakdown [00:47] Getting to Know Salvatore Buscemi [03:35] Common Mistakes by PE Firms and Their Portfolio Companies [06:25] How to Use Media to Bring Awareness to Your Portfolio Companies [07:42] Only Investing in Companies with Strong Founders [11:30] Recent Successes in Sal's Portfolio [13:30] How to Top .001% Invest [16:30] The Herd Mentality in Silicon Valley [20:46] Why Not All Ideas Get Funded [22:40] Venture Capital in a High-Interest Rate Environment [25:33] VC Firms Focusing More on Quality Companies [28:14] What More Expensive Debt Means For VC Companies [30:40] Advice on How to Make Better Quality Investments [34:54] Things Sal Likes and Dislikes About Private Equity[36:24] Pari's Go-To Self-Improvement Resources [37:25] Parting Thoughts  How the .001% Invest The .001% of people invest differently than the middle class. Anyone making $150,000 a year is in the 1%. Even though they essentially make a lot of money, they typically don't invest like the super wealthy. Why? Because they have a lot of debt, they are wage earners - so they can be fired at a moment's notice. Plus, they look at investing as a way to grow wealth in a short period of time. So, essentially their investment mandate is to get rich quick. In contrast, the top .001% focus on capital preservation and increasing status. You won't find them buying the latest Gucci shoes, but you will find them discussing how to buy a sports team or leave a permanent mark in the world.  Why You Need to Build Better Networks  The people who have the worst investments have the worst networks. If all the people in your network are concentrated in one specific niche, that's a problem. According to Salva, you need to spend a disproportionate amount of time networking. This is the only way you can guarantee a healthy deal flow. Building a strong network of people can lead to new opportunities you may not have had access to otherwise. Your network can connect you with potential clients, employers, and other professionals who can help you grow your business or advance your career.  Whether you're looking for new opportunities, support, different perspectives, learning opportunities, or collaborations, you need a strong network of people. So take the time to invest in networking, meeting new people, attending conferences, and building meaningful relationships with the people in and out of your area of expertise. How to Contact Sal Salvatore's LinkedIn  ,Investinglegacy.com ,Investing Legacy: How the .001% Invest by Salvatore Buscemi 

Introduction to JasonJason Glende is an executive sales professional who’s led multiple commercial organizations to success. Jason came from a background in engineering and decided to take on a career in sales and private equity. He shares his story and how his success in the PE industry flourished since his career shift.  What You Will LearnJason’s Interest in the PE-backed WorldHow to Transition to PE IndustryKeys to Long-Term Success in PEDefining A Good Team Culture Breakdown[00:28] Introduction of Jason[02:00] Mistakes Private Equity Makes and How to Correct[02:40] What Attracted Jason to PE-Backed World [03:56] Advice When Transitioning to PE [06:00] Harnessing Long-Term Success in PE[11:23] Interpretation of a Good Team Culture[14:25] Mistakes and Solutions of Salespeople[18:08] Three Attributes that Make a Top Performer[20:41] Likes and Dislikes About PE[23:08] Media Influences of Jason[26:18] How to Reach Jason Thinking Long TermFor organizations backed by PE, mapping out long-term strategies are the key to success. Strategies to consider include building a good team, listening to customers, having a winning culture, and having a process that increases win rates. Organizations that are covered by these factors are more likely to set themselves up for longer-term success in PE.  The Culture In terms of culture, it’s important that a team has a good and healthy environment in order to achieve your organization’s goals. Culture can be broken down into either the relationship you build with your colleagues, the interactions you have with customers and external companies, or the mindset you have for yourself. Having the empathy to be considerate about the wellness of your organization can create a healthier productive environment on an internal scale. Being humble to competitors and open to customer feedback are ways to project a healthy company to external entities. Having the openness to fail, is one other way to show that you are learning for the future. Other Media ReferencesEmpire of the Summer Moon by S.C. GwyneAtomic Habits by James Clear How to Reach JasonJason’s Linkedin ​​Thank you for tuning in!To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.  

Introduction to ChrisChris is the Co-Founder and Managing Partner of L5 Capital Partners. L5 Capital Partners is a business equity firm that invests in consumer businesses. These include, communications, lifestyle, and health. Chris, for the longest time has been in the operations side of organizations, and now he sheds light on how he migrated from ops to the investor side of his career. What You Will LearnConsumer SpaceTransitioning from Operations to InvestorQuality Hiring Process in PEBusiness GrowthTalent Cycles  Breakdown[00:28] Introduction of ChrisEarly days in Corporate finance and worked through telecom [02:30] From Operator to Investor[03:31] Mistakes of PE Firms and Portfolios[04:55] Changes in the Hiring Process[11:14] Focusing on Consumer Space[14:29] Focusing and Defining Stage Growth[19:52] Values in Operator-Led Firms[23:58] Experiences Taken as a CEO[28:54] Preparational Procedures for Promotions[31:03] Three Attributes That Make a Top Performer[33:33] Love and Dislikes About PE[36:40] Other Media Literature[40:55] How to Reach Chris Talent LifecycleA giant factor that affects businesses is the lifecycle of talents that rotate inside the organization. Talents pertained here are the executives level or decision-making roles. Chris emphasizes the importance of the talent lifecycle due to many companies relying on just filling up the seat rather than considering other long term factors. As someone who’s experienced operations to investor, Chris is now well aware of the timeline and essentials candidates will need and bring in order to become an exceptional candidate for roles such as CEO, CFO, COO, etc.  Consumer Space and GrowthIn today’s episode, Chris talks about the consumer space in telecom and how elements such as proper business models, good relationships, and market adaptability enable companies to grow long term. These foundations that can accommodate a long term consumer journey are the key for a healthy business development. It’s not only about being adaptable to the market for the consumers, but also establishing the organization’s structure and see if the internal workflow is healthy as well. Aside from the internal relations, companies should also look out for the externals as well, building business relationships with other companies that could be also potential investors and partners for longer term projects. Other Media ReferencesZora How to Reach ChrisChris’ Email: chris@lfivecapital.com  ​​Thank you for tuning in!To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com. 

Introduction to EricEric Anderson is the Chief Operating Officer of Clearwave Corporation and has been the COO since 2010. Eric’s experience stems from his undergraduate degree in accounting and then an e-commerce program in Stanford. Since his education, he’s worked with startups and Fortune 500 companies. His primary industry work revolves around technology and now healthcareWhat You Will LearnInvesting in HealthcarePE Investment in HealthcareCapital and Company GrowthImportance of Knowledge and ResourcesStandards When Selecting a PE FirmPrivate Equity ExitsBreakdown[00:28] Introduction of Eric[02:37] Mistakes and Actions to Take in PE[06:15] Challenges Encountered by Clearwave Corp.[08:31] Needs in Capital for Growth Acceleration[11:11] Source of Knowledge of Investment [13:24] Acquired by Private Equity[15:06] PE Firm Selection Process[20:40] Advice to PE Executives on Exits[24:39] Eric’s Endurance Post-Exits [28:31] Attributes that Make a Top Performer[31:36] Likes and Dislikes About PE [37:18] Other Media References[40:23] How to Reach Eric Knowledge is PowerWhen it comes to Private Equity, the more you know will benefit your firm and the businesses backed by PE. According to Eric, the knowledge gained in terms of sales, demand, customers, etc., can help firms and businesses craft a game plan that can project long-term revenue-generating outcomes. This information can be extracted from operating partners and consultants. It is also essential to consider partners or consultants that are well-versed in the industry your business is associated with.Private Equity ExitsPrivate equity exits are moves that are not entirely negative as some require this move to redirect the financial strategy or change the revenue dynamics of certain companies. These exits are okay based on law regulations, however, they require a due process in order to have successful and non-impactful outcomes. In order to achieve an exit, companies should need a playbook strategy that depends on the nature of the business goals. It also helps if the companies have an open mind throughout the process and a leader that’s agile which can result in growth changes. Other Media ReferencesMeasure What Matters by John DoerrThe Leadership Sequence by Nick SabanNever Split the Difference, Negotiating as if Your Life Depended on It by Chris Voss and Tahl RazThe Power Law: Venture Capital and the Making of the New Future by Sebastian MallabyHow to Reach EricEric’s Email: andersonericd@gmail.com ​​Thank you for tuning in!To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com. 

Introduction to JohnJohn Gallagher is the CEO of Element SaaS Finance. John has been a finance professional for some time now and has worked in different industries including the private equity sector. He has a track record of working with different equity firms, but mostly building his element finance. What You Will LearnPE Firms: A more customer-centric approach The SAAS (Software) IndustryBuilding Customer RelationshipsFirm Growth ManagementDifferent Types of Venture Debt Breakdown[00:25] Introduction to John[01:29] Mistakes Made in PE and Actions For It[04:04] Focusing on the SAAS Industry[05:45] Investment: Average vs Great SAAS[08:24] Recommendations for Other PE Firms in SAAS [10:20] Facilitating Firm Growth[11:53] About Venture Debt [15:51] Attributes that Make a Top Performer[17:42] Likes and Dislikes of the PE Industry[20:39] Recommendations for SAAS Investment[21:58] Other Media Reference[23:33] How to Connect with JohnStatistical Analysis System Industry The statistical analysis system industry, or SAAS,  is a sector that focuses on data management, advanced analytics, varying types of analysis, business intelligence, and other analytical-based types of work. The target market for SAAS has a wider net as it scales on a global level. Firms would have customers ranging from Australia, and Asia and the base operations can be found in the United States. With SAAS, businesses can really thrive in this industry through organic growth even with little assets they have. With the right strategy and long-term plans such as projection of investments and debt, businesses will have no problems scaling themselves for long-term success.Customer-Centric and Building RelationshipsWhen it comes to the SAAS industry, PE firms that want to back companies should keep an open line of communication with their customers. It is important to build a good standing relationship with them in order to drive long-term partnerships and success trajectories for the firm itself. Although results and outputs are important, having a well-developed business relationship with customers may be able to set up companies for a growth-incline future. Other Media ReferencesBusiness and Sports Individuals who overcame adversaries History particularly in Tech, Finance, and CryptoPodcasts  How to Reach JohnJohn’s website​​Thank you for tuning in!To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.