The Private Equity Podcast, by Raw Selection

Welcome back to The Private Equity Podcast, by Raw Selection! In this episode, Alex is joined by Robb Powell, an experienced Operating Partner and former CEO who has successfully built and sold two businesses. Robb discusses the deployment of technology and AI in private equity-backed companies, shares insights on driving cultural transformation, and explores the importance of enabling people for business success. Breakdown:[00:00] Robb discusses how private equity firms and portfolio companies can start using AI.[00:12] Introduction to Robb Powell, an operating partner and former founder and CEO. The episode covers tech, AI, and culture.[00:41] Robb shares his background and experience with acquisitions, board work, and leveraging technology for business growth.[01:11] The importance of using technology to drive sales and agility in companies.[02:06] Common mistake in private equity: focusing too much on finances post-acquisition, neglecting team assessments and aligning people with goals.[03:33] Robb’s method for assessing management teams, using written responses to understand their thought process.[05:00] Building a culture of success focused on enabling others and creating referral-worthy work.[07:01] The importance of having a clear narrative about the value you're providing in any role.[08:29] Robb’s thoughts on aligning people and driving change in organizations, including when it’s time to let people go.[11:19] Overview of Robb’s technology and digital transformation work with various companies, particularly in sales and service industries.[13:41] Robb shares how AI is being used to transform roles, including automating coding tasks in a tech company.[14:34] Exploring where private equity firms and portfolio companies should start with AI and ChatGPT.[15:59] Robb’s advice on using AI tools to help businesses innovate and work more efficiently.[17:54] The future of AI: replacing tasks, not jobs, and making people smarter through automation.[20:19] The potential of using existing tools to implement AI in businesses without needing large consulting firms.[21:46] Robb’s current AI project with a high-end wine room business and the value AI adds to search functionality on websites.[22:45] Robb’s influences and recommendations for books, podcasts, and thought leaders, including Acquired and Peter Diamandis’ work.[26:04] How to connect with Robb Powell via LinkedIn. You can connect with Robb on LinkedIn by visiting his profile here. To be added to the book waitlist, you can email alex.offer@raw-selection.comThank 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

Welcome back to The Private Equity Podcast, by Raw Selection! In this episode, Alex is joined by Andrew Towne, a partner at Olympus Pines and a five-time world record holder. Andrew shares his journey from private equity to breaking world records, including his impressive mountain climbing feats and insights into the private equity industry. Join us as we dive into the mindset and strategies of this remarkable private equity leader.Breakdown:[00:00] Andrew shares his experience climbing Aconcagua during a deadly season.[00:19] Introduction to Andrew’s investment focus in the American car wash industry and his world records.[01:53] Andrew discusses his career journey, starting in international relations and transitioning to private equity.[02:18] The common mistake private equity firms make: neglecting operations and transformation.[02:45] Why portfolio operations are essential for unlocking value in competitive deals.[03:14] Examples of operational improvements in revenue and cost management within portfolio companies.[05:06] Andrew’s consulting background at Boston Consulting Group and his shift into private equity.[06:07] How living abroad in countries like Germany and Kenya shaped Andrew’s worldview.[07:34] Moving from consulting to private equity: Andrew wanted to own decisions and manage risk.[09:31] Lessons from world travel: people are more similar than different across cultures.[12:36] A customer’s comment at a car wash illustrates how people view different roles in society.[15:05] Why Andrew and his team chose to invest in the evolving American car wash industry.[16:26] Technological innovations and automation driving growth in the car wash business.[17:49] How Andrew’s car washes use advanced technology to ensure customer satisfaction.[18:48] Balancing customer service with profitability in the car wash sector.[20:15] The fragmented nature of the car wash industry creates growth opportunities.[21:44] Challenges in building new car washes and scaling operations.[22:25] Andrew’s journey from overcoming childhood obesity to breaking world records.[24:47] How rowing at Yale taught Andrew to push through mental barriers and trust himself.[26:09] After completing the Seven Summits, Andrew turned to ocean rowing and set world records.[28:04] Stories from his expeditions, including surviving a deadly earthquake at Everest base camp.[29:02] The story behind Andrew’s world-record row from South America to Antarctica.[31:28] Andrew’s approach to confronting fears and mental challenges in everyday life.[35:21] Closing remarks from Alex and Andrew summarizing their discussion on private equity, personal growth, and world records. You can connect with Andrew Towne on LinkedIn by visiting his profile here. To be added to the book waitlist, you can email alex.offer@raw-selection.comThank 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

Beth Pollack, an applied AI and data strategy operating partner with 20 years of experience, shares her insights on implementing AI in private equity-backed companies. She discusses common pitfalls like vague problem definitions and the lack of integration into workflows. Beth emphasizes aligning AI initiatives with business goals and highlights a successful AI application in healthcare that improved EBITDA. She also advises caution when choosing consulting firms and underscores the importance of team alignment and stakeholder engagement for successful AI integration.

In this discussion, Paul Adams, a seasoned CEO in the home services field, reveals insights from his extensive experience with private equity-backed companies. He explains the appeal of residential services to investors, focusing on its fragmented nature and the importance of strategic acquisitions. Paul emphasizes the emotional challenges faced by family business sellers and the pressing labor shortages impacting the sector. He underscores the significance of building trust with founders and highlights the necessity of relationships in navigating this people-driven industry.

Richard Brekka, the Managing Partner and Co-Founder of Second Alpha, sheds light on the booming secondaries market in tech. He discusses how his firm enhances liquidity for private tech shareholders and connects the rise of secondary funds to the trend of companies remaining private longer. Brekka reveals that 90% of transactions involve unicorns and emphasizes the enormous opportunity in mid-valued firms. He also shares insights on common investment mistakes and the vital need for timely value realization.

Chad Kalland, an experienced CEO in the industrial services sector, shares his journey through multiple private equity-backed exits. He delves into the importance of understanding cultural dynamics during acquisitions and how to keep teams engaged amidst rapid change. Kalland discusses common pitfalls made by private equity firms, emphasizing strategic patience over abrupt changes. He also highlights the need for integrating company strengths and fostering a merger mindset to drive sustainable growth.

Marc Jourlait, a seasoned Private Equity Operating Partner and former CEO with a track record of successful exits, shares his insights on value creation. He emphasizes the importance of quick action during the investment cycle to enhance returns. Replacing key executives early, like the CFO, is crucial. Marc discusses the benefits of pre-close engagement with management teams and the differences in operating partner roles between Europe and North America, highlighting how these factors shape investment success.

Drew Schardt, Vice Chairman and Global Head of Investment Strategy at Hamilton Lane, offers over 17 years of expertise in private equity. He discusses the current landscape and vital investment strategies for 2024. Drew emphasizes the importance of real-time data for better decision-making and hints at the evolving role of technology in the sector. He also explores the recovery post-global downturn, lower leverage, and changing deal dynamics, along with potential market volatility and the influence of global monetary policies on investment opportunities.

Welcome to The Private Equity Podcast, by Raw Selection! Today, we're joined by Kevin McShane, a seasoned Chief Revenue Officer turned Operating Partner, with a wealth of experience from multiple private equity-backed exits. In this episode, Kevin shares insights on his journey, the impact of AI on driving revenue and EBITDA, and his key learnings from successful exits in the technology sector. We'll also dive into the role of AI in private equity and discuss Kevin's transition from CRO to Operating Partner. Breakdown:[00:00] Kevin McShane's Introduction – Overview of Kevin’s career in tech, private equity, and his role as an operating partner.[00:10] Kevin discusses how AI can drive revenue and EBITDA growth.[00:39] How portfolio companies are using AI for decision-making and growth.[01:08] 25 years in tech, CRO roles, and his transition to an operating partner.[03:05] Kevin highlights missed opportunities in private equity due to slow AI adoption.[04:00] Examples of AI in sales, demand generation, and customer success.[05:26] How AI implementation led to cost savings and pipeline growth.[06:24] How AI can be cost-effectively integrated into existing CRM and marketing tools.[09:42] Insights on recent stock price dips and tech sector trends.[12:44] Kevin emphasizes the role of strong CFO and leadership relationships in successful exits.[16:52] The importance of relationships and keeping ego in check for team success.[19:44] Kevin’s advice on moving from CRO to an operating partner role.[24:00] How Kevin builds trust and guides teams without direct authority as an operating partner.[30:41] Collaboration with leadership to develop and own strategic initiatives.You can connect with Kevin McShane on LinkedIn by visiting his profile here.To be added to the book waitlist, you can email alex.offer@raw-selection.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.

Geoff Lurie, Managing Partner at Traub Capital Partners, shares his insights from decades of experience in private equity. He discusses the critical first 100 days post-acquisition and the need for clear reporting structures. Geoff highlights the struggle entrepreneurs face when adapting to PE oversight after years of self-reliance. He emphasizes the importance of understanding consumer sentiment and the pivotal role of CFOs in communication. Practical strategies for collaboration between investors and operators are explored, aiming for better financial outcomes.