The Private Equity Podcast, by Raw Selection

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.

In this engaging conversation, Ted Clark, a seasoned chief executive turned private equity investor at Iron Path Capital, shares his wealth of knowledge on deal origination. He discusses the power of specialization in private equity, particularly in the healthcare and life sciences sectors. Ted emphasizes the importance of having a clear investment thesis and leveraging professional networks to uncover valuable opportunities. His systematic approach to deal sourcing showcases how a structured method can enhance effectiveness in a competitive landscape.

Jeffrey Stark, a seasoned executive celebrated for his leadership in private equity-backed exits, shares his career journey from corporate America to driving growth in private equity. He discusses the power of collaborative leadership and the pivotal role of independent board members in enhancing company success. Stark emphasizes transparent communication, especially during crises, and recounts the strategic successes of his companies through robust acquisition strategies. He also reflects on the challenges of navigating corporate transitions during the pandemic, balancing operational improvements with employee well-being.

Jordan Burton, co-founder of Talgo and an expert in executive talent assessment, shares his insights on navigating the complexities of hiring in the private equity sector. He emphasizes the importance of structured interview techniques and timely decision-making to optimize human capital. Burton discusses intrinsic motivation in top-performing executives, underlining traits that define effective leaders. He critiques traditional hiring methods and advocates for a focus on real-world experiences, helping firms elevate their talent assessment processes.