The Private Equity Podcast, by Raw Selection

Introducing Carl CoxCarl J. Cox is a Business growth strategy expert, podcast host, and the CEO of 40 Strategy, where he helps CEOs scale with strategic excellence. He is also the author of Lost At CEO: An Entrepreneur's Guide To Strategy. The book reveals a uniquely different approach to strategies that have the power to transform any business that has struggled with stale strategic retreats, failed initiatives, and stalled-out growth. What You Will Learn:The Power of Strategic Planning in Private EquityHow to Design a World-Class Strategic PlanWays to Move From Lagging to Leading IndicatorsBreakdown:[00:00] Introduction[01:50] The Mistakes PE Firms Make with Their Portfolio Companies[02:49] Marrying People, Processes, and Systems in a Firm[04:14] From Lagging Indicators to Leading Indicators[06:47] Indicators That Prove You're Headed in the Right Direction[08:53] Strategies and How Often to Track Your Them[12:10] The Concept of Strategic Accountability[15:29] What a World-Class Strategy Looks Like[19:25] Motivation For Writing the Book[23:30] What Carl Likes and Dislikes About Private Equity[28:57] What Carl Watches, Reads, and Listens To [33:02] Parting Thoughts The Foundations of a Strategic Plan in Private EquityReady to scale your private equity firm the right way? Well, it's very simple. All you need is a world-class strategic plan and the accountability to get it done. According to Carl, all these can be achieved by focusing on only three things:Initiatives that Create Value. As a PE firm, you must focus on the initiatives that create the most value. Highlight all potential strategic initiatives, then rank them according to feasibility, and double down on the ones that have a greater organizational impact. To improve your chances of success, Carl recommends focusing on at most three strategic plans at a time.The Right KPIs. Choose KPIs that are leading indicators, not lagging indicators. Stop focusing on the outcome and instead focus on the behaviors that lead to them. A solid strategic plan should have metrics for behaviors and actions that can be tracked and monitored regularly. Accountability. PE firms should make accountability a core part of their business strategy. Keep your people accountable. Don't take your eye off the ball because people will likely fall back into old habits. As a leader, start by setting clear deadlines, establishing roles, and performing regular check-ins. The more successful PE firms ensure everyone stays on track and feels more accountable for their work.How to Carl CoxCarl's email - CarlJCox@40strategy.comCarl's LinkedIn, 40strategy.com, Lost At CEO: An Entrepreneur's Guide To Strategy by Carl J. Cox 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.

Matthew Garff, Senior Managing Director at Sun Capital Partners, Inc., discusses the importance of culture in private equity firms and portfolio companies. He explores the strategies used by successful firms to create value and attract talent. The podcast also covers the challenges faced by the industry, including deal scarcity and finding quality professionals.

Pranav Garg, Founder of Peak Margins, discusses profitable growth in private equity, the power of data in decision-making, and his TAU Framework. He emphasizes the mistakes PE firms make, the advantages of data-driven decision making, and shares his likes and dislikes about PE.

Tim Flannery, founder of Passthrough, discusses the mistakes PE firms make with their portfolio companies, benefits of investing in your firm's brand, and how firms are using AI to raise capital. He emphasizes the importance of proactive communication, understanding investor needs, and navigating the current fundraising landscape.

Introducing Amy GrossAmy Gross is the Global Private Equity Practice Leader for Liberty Mutual. She consistently demonstrates her expertise by working directly with clients connecting their firms and portfolio companies across Liberty’s global business. Amy brings the scale of her private equity clients to the forefront, where she educates on private equity and encourages people to bring creative solutions to help them solve their needs.  What You Will Learn How to lower private equity insurance costsInsurance for PE portfolio companiesReasons why PE firms should prioritize insurance coverage Breakdown[00:00] Introducing Amy Gross[01:40] The Mistakes PE Firms Make with Their Portfolio Companies[04:12] Insurance Premiums for PE Portfolio Companies[06:08] Is PE Too Risky For Insurance Firms?[10:35] What PE Firms Can Do to Get the Most Out of the Insurance Industry[13:02] Ways PE Firms Can Reduce Their Insurance Costs[16:15] How to Build Better PE-Insurance Relationships[18:38] What Amy Likes and Dislikes About PE[19:47] What Amy Watches, Reads, and Listens To [20:28] Parting Thoughts How PE Firms Can Lower Their Insurance CostsLowering private equity insurance costs can be challenging, as insurance premiums are typically based on factors such as the nature of the business, its operations, risk profile, and claims history. According to Amy, the biggest thing PE firms can do to reduce their insurance cost is to make themselves a better risk. A better risk involves actively reducing the impact of potential loss by developing plans to eliminate, manage, and limit setbacks as much as possible. All this translates not to just better insurance but better workplace safety, better morale, and basic peace of mind. Amy adds that building great relationships with insurance carriers can sometimes lead to better premiums. Demonstrating loyalty and maintaining a positive track record with an insurer can result in favorable negotiations and potentially lower costs. How to Contact AmyAmy’s email Amy.Gross@Libertymutualgroup.comLibertymutualgroup.comAmy’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.  

Introducing Jon ThompsonJon Thompson is the author of The Dashboard Effect and co-founder & Chief Strategy Officer at Blue Margin, where he helps private equity and mid-market companies quickly convert data into automated dashboards. Their mission is to deliver breakthroughs early and often, and within clients’ timelines and budgets. Jon offers practical steps for business leaders who want to quickly leverage data to improve outcomes. What You Will LearnHow to Apply Data and Analytics in Private EquityWhy Data Intelligence is a Great Differentiator in BusinessWays Data is Slowly Transforming Private Equity Breakdown[00:00] Who is Jon Thompson?[02:00] Common Mistakes by PE Firms and Their Portfolio Companies[04:38] Data Analytics in Private Equity and Why It’s Important[07:24] Successful Data Utilization in PE[10:09] How to Make Data the Main Part of Your Execution Strategy[12:32] Reliable and Scalable Data Architecture[15:18] How to Use Data to Inform Your Decisions[20:00] Using Data Internally to Define Key PE Metrics[22:15] How to Create a Data Utilization Culture[25:55] Improving Data and Analytics in PE[28:57] Jon’s Go-To Self-Improvement Resources[35:25] Parting Thoughts  Successful Data Utilization in Private EquityPrivate equity firms have recognized the immense potential of data utilization in enhancing their investment decision-making processes and driving operational efficiency. By harnessing the power of data analytics, PE firms can uncover valuable insights, identify investment opportunities, and optimize portfolio performance. Successful data utilization in PE involves leveraging various data sources, employing advanced analytics techniques, and fostering a data-driven culture. Rapid growth and the birth of AI have heightened the importance of in-depth data and analytics. To compete, PE firms need high-quality technology solutions to sharpen their insight and streamline their workflows across the entire fund lifecycle. However, data is only as valuable as it is understandable and accessible. According to Jon, without an effective way to manage information, your data can very quickly become “noise.” And in some cases, noise is worse than not having the data at all. How to Contact Jon:Jon’s LinkedIn https://www.linkedin.com/in/jon-thompson-37282432/ Jon’s Email: Jon@Bluemargin.comBluemargin.comThe Dashboard Effect Podcast: https://podcasts.apple.com/us/podcast/the-dashboard-effect/id1634065977 The Dashboard Effect: Transform Your Company by Jon Thompson and Brick Thompson 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 Ryan SchlittRyan Schlitt CEO & Co-Founder Aviditi Advisors, a premier, independent alternative advisory firm servicing global alternative investment managers and investors. Ryan has over 20 years of financial experience as a senior management member of the leading private placement/advisory groups at Donaldson, Lufkin & Jenrette, and Credit Suisse Securities. Before forming Aviditi, he had originated, executed, distributed, and been part of more than 325 capital raises, aggregating more than $480 billion. What You Will LearnThe Private Equity Fundraising ChecklistWhy Small Private Equity Funds Struggle Raising CapitalWhen to Start Worrying About Access to Capital Breakdown[00:00] Who is Ryan Schlitt?[05:10] Common Mistakes by PE Firms and Their Portfolio Companies[07:10] It’s Not When You Start, It’s When You Finish[08:30] How to Prepare for Fundraising Success[14:34] Why Some PE Firms Struggle to Raise Funds [18:07] Ryan Describes the Current Fundraising Climate[22:28] Smaller Funds Struggling to Raise Capital[25:56] Is Capital Moving Away from Private Equity?[29:00] Future Trends in PE[31:45] Ryan’s Go-To Self-Improvement Resources[35:25] Parting Thoughts  Fundraising in Private EquityPrivate equity has been experiencing a robust fundraising environment with increased investor interest and significant capital commitments. According to Ryan, one notable trend has been the rise of larger fund sizes. Some firms have been able to raise increasingly substantial amounts of capital, with mega-funds (those with over $5 billion in commitments) becoming more common. Established private equity firms with proven track records have been particularly successful in attracting capital from investors. However, that is not the case with emerging managers and smaller funds. Investors often prioritize track records and prefer investing in established firms with consistent performance. Although the industry continues to evolve, fundraising success still depends largely on factors such as investment track record, investment strategy, differentiation, and alignment with investor preferences. How to Contact Ryan:Ryan’s LinkedIn: https://www.linkedin.com/in/ryan-schlitt-889896a/Aviditiadvisors.com​​Ryan’s Email: Rschlitt@avidiadvisors.comThe Smartless Podcast: https://www.smartless.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. 

Learn about creating value in private equity, building a value creation team, using templates for effective plans, benefits of repeatable checklists, importance of internal communication, building checklists and workflows, and tracking KPIs for value creation

Introducing David SoppDavid Sopp is the Senior Vice President of Business Development at Simply Beautiful Smiles (SBS), a dental service organization, owned by Sun Capital Partners. He and his team acquire, operate, and offer back-office services to general dentistry practices across the Mid-Atlantic area. They currently have 40 locations across five states. Before joining SBS, he was a private capital investor investing in private equity and sub-debt.What You Will Learn Perspectives from Being an Investor and an Operator Acquiring Businesses at Attractive MultiplesThe Attributes of Top Performing InvestorsBreakdown[0:50] Introducing David Sopp[3:58] What Made David Shift from Investor to Operator [6:43] What David Wishes He Knew as an Investor [8:30] Lessons from Private Equity [10:14] The Mistakes That Most PE Firms are Making[12:24] How to Acquire Business at More Attractive Multiples[15:36] Lessons for Lower-Middle Market Investors [19:27] Three Attributes of a Top Performing Investor[23:24] Advice for Operators, C-Suite Executives, and Portfolio Companies[26:23] What David Watches, Reads, and Listens To [28:20] Where to Reach David[29:01] Parting ThoughtsAcquiring Businesses at More Attractive MultiplesOne way is to know where to look, and that comes with developing one’s own proprietary deal workflow. More firms are considering entrepreneurs they’ve backed before and identifying investment ideas that no one else is pursuing yet. Another way is to use operating resources to create and realize upsides. It’s because there’s often more than meets the eye with businesses. Investors need to look into each element of a business to consider how it can potentially differentiate and diversify the business to generate more equity value. Finally, investors must change their mindset about investing. It isn’t always about financial engineering. Instead, investors should focus on building businesses with world class talent with more efficient systems. Building the exact asset that potential customers are looking for will allow investors to mitigate the prices they’re working with while also creating even more value to the business post-acquisition. 3 Attributes of a Top-Performing Investor?1.     Intellectual curiosityAs the world changes, so do investment strategies. Top-performing investors keep pace with the changing world by remaining curious about what’s new, how it’s going to affect their investments, and what challenges and opportunities are on the way. They need to be passionate about discovering new industries, meeting new people, and developing new skills. 2.     Ability to spot patternsIndustries, no matter how different, will often share similar characteristics. Being able to spot these allows top performing investors to get up to speed on new industries and business models much faster than others. Top investors can leverage the patterns they recognize to scope out a better due diligence process and run sensitivities about how likely negative scenarios are going to happen. As David explains, it also helps top performers spot show-stopping deals: investments with unmanageable risks. These help investors mitigate their risks and identify better opportunities.3.     Confidence Investing involves taking calculated risks and many people challenge investing decisions. Top-performing investors need to have the courage and conviction to articulate support for their investing theses. They need to ensure that their thesis makes sense. Without this ability, as David explains, deals aren’t going to get done.

Welcome to the Private Equity Podcast Playbook Series. In this series, we'll dive deep into crucial private equity subjects and provide playbooks that you can use to grow your firm or portfolio company.  Introducing Nevin RajNevin Raj is the Chief Operating Officer and co-founder of Grata, a B2B search engine for discovering small to middle-market private companies. At Grata, Nevin is responsible for leading business operations, from sales and marketing to customer success and product initiatives. What You Will Learn:How to Develop a Strategic Business Development PlanThe Best Way to Ask for Referrals in Private EquityHow to Play the Long Game with Private Equity Relationships  Breakdown[00:00] Introduction[01:18] Inbound Prospecting and Deal Sourcing[03:11] The Tools Needed for Proactive Business Development[04:39] How to Implement Proactive Business Development [07:30] Ways PE Firms Can Drive Effective Business Development [10:20] Understand that the Best PE Firms Play the Long Game[14:27] Building Relationships Before Process[16:10] How to Start Asking for Referrals[20:50] Ways to Build Relationships with Banking Executives[23:35] Build Better Relationships with Lawyers and Accountants[27:20] Engaging with Other Investors[31:50] The "In Real Life" Strategy[35:20] How the Top PE Firms Manage Relationships[37:40] Parting Thoughts  Proactive Business Development in Private EquityPrivate equity firms are in a tough spot. Competition is fierce, and finding good investments at fair prices is becoming even more challenging. To stay ahead, firms are stepping up their game in deal origination and getting innovative in spotting their next big opportunity. But there is a problem: who should be responsible for ensuring these initiatives work? More and more firms are bringing in business development professionals to fill that role. These folks ensure that the proactive efforts pay off as planned.According to Nevin, business development is proving to be a critical asset to PE funds. Once a firm start proactively building relationships, they should see a noticeable change in actionable deal flow within a few months. How to Contact ChrisNevin's LinkedInNevin's email - Nevin@grata.comGrata.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.