HoldCo Builders

Imagine this…You help grow the home care and hospice company from $20 million to $150 million and then they fire you.Then you think whether you should start your own thing or not, “I always knew I wanted to be an entrepreneur but I wasn’t ready for it…”Voila…You still decide to do it…Today, at 38, Nikolas runs a diversified portfolio of 5 companies. ("A small portfolio of a few companies,”, as he put it.) What a humble man.Fantastic and very open conversation with Nikolas Hulewsky from the holding company called CoFounders.Show notes:00:00:00 - Intro00:02:36 - Lessons learned from growing a home care business to $150 million00:09:51 - Getting fired and starting your own business00:11:58 - Starting a brand new company and making $10 million in revenue in 3 months00:19:55 - 4 criteria before buying a company00:24:50 - Preparing for interest rate changes and what if they don't change00:27:41 - All deals they’ve done are off-market, never using brokers00:36:21 - “You do it because you want to have fun,” but what about financial goals?00:40:30 - Building a business with your best friend00:45:13 - Time management 101: 4 kids, a wife, and a goal of $100m in revenueFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠⁠https://x.com/PrivatEquityGuy⁠⁠⁠Nikolas on Twitter: ⁠⁠⁠https://x.com/CoFoundersNikThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Even when every 3rd and 4th person in finance dreams of starting their own private equity fund…Only 0.01% give it a chance and far fewer succeed…Here is my conversation with John Caple of Hidden Harbor Capital Partners who just went and did all that...$260m fund I$465m fund II$800m fund III (just announced fundraising)They invest in lower middle market industrial and business services companies, paying 4-8x EBITDA per deal, making them a true value shop.“I don’t want to pay 5 times for 5 times business. I want to pay 5 times for a business that one day can trade for 8, 10, 12 times. Well, that’s what everyone wants to do… But how we do it is by buying founder and family owned businesses. We never buy from another private equity firm.”We had a blast. Enjoy!Show Notes:00:00:00 - Intro00:00:37 - We just raised $800m, but the real work is just beginning00:01:42 - Early days as an investment banker and consultant00:05:12 - Doing it with his best friends and raising the first 260m fund00:12:39 - Straightforward fundraising advice00:17:45 - Why we're starting to see many private equity funds disappear00:23:40 - Sourcing, selecting, servicing00:25:45 - Investment preferences00:32:00 - Lessons learned after one portfolio company ended in zero00:38:21 - Processes they can't live without00:44:02 - Advice for founders considering selling their business00:52:39 - Is this life what you expected it to be?Follow Mikk/PrivatEquityGuy on Twitter: ⁠⁠⁠https://x.com/PrivatEquityGuy⁠⁠⁠John on Twitter: ⁠⁠⁠https://x.com/BigJohn043This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

My research of Chris Rolls, the founder of PieLAB Capital, who went through the journey of building and selling his business, then starting a private equity fund, and then starting a permanent holding company.Their most successful portfolio company, Detector Inspector, have grown from $6.5 million in revenue to $84 million.Chris is a big fan of acquisition led compounders and serial acquirers.When comparing serial acquirers and private equity: “We got the end of the fund and we had to sell some really great companies. And being an operator, if you have a great company which is growing, and generating cash – you don’t want to sell such companies.”Fascinating lessons, I hope you enjoy listening as much as I enjoyed doing the research.Show Notes:00:00 - Intro01:10 - Growing Detector Inspector from $6.5 million to $84 million02:40 - The early years of learning private equity04:01 - 3 reasons why private market investing generates better returns?11:55 - Not wanting to sell great companies17:02 - Characteristics of PieLAB Capital’s portfolio20:39 - Becoming a long-term buyer and holder of businessesFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuy⁠⁠This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

My conversation with Eugen Benedikt Russ.A gentleman in his 30s who runs a $200 million a year holding company.Since starting in 2018, they have achieved an IRR of 39% over the past 6 years.A portfolio of 10+ companies (all majority owned)They specialize in acquiring, managing, and operating profitable niche businesses in Online Marketplaces, Consumer Apps and SaaSThe smallest portco earns about $2-3m in EBIT, while the largest earns $19.2m in EBIT.“These days you can run and operate profitably and successfully in these niches with a team of under 20 people nowadays. Sometimes even under 15 people. You can build a company that does $5 to $10m in revenue at a 40, 50, even 60% EBITDA margin. ”If you care about running extremely profitable niche companies, a must listen!Show Notes:00:00:00 - Intro00:05:48 - Haven’t raised a single dollar of outside capital00:07:25 - Investment strategy (revenue, profit, location)00:15:02 - A niche with 30% YoY growth00:17:28 - A recent successful investment and how they think about the opportunities00:21:38 - Finding the best talent00:26:51 - Diversified portfolio00:38:03 - The famous fiveFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuy⁠⁠Join HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small profitable niche businesses: ⁠⁠⁠⁠⁠https://privatequityguy.beehiiv.com/⁠⁠Eugen on Twitter: ⁠⁠https://x.com/eugen_russThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

My conversation with Kashyap Chanchani, managing partner of The Rainmaker Group, an Indian firm that works with traditional family businesses and VC-backed companies."I started the Rainmaker Group because I didn't want to sleepwalk through life."Kashyap runs a growth equity advisory firm which does $500 to 700 million worth of transactions annually.We discuss:– 30 of India's 50 largest companies are still family-owned– 30% of family owned businesses are open / attracted to raising private equity funding– Why and how should one invest in private companies in India– A message for people who want to invest in private companies in India– Putting all your money in Indian equitiesShow Notes:00:00:00 - Intro00:00:23 - “I didn’t want to sleepwalk through life”00:03:07 - Private family owned businesses in India00:08:45 - Succession planning in India00:17:20 - The opportunity of building a holdco of small traditional businesses00:27:29 - Key-man-risk in family owned traditional businesses00:36:41 - “Don’t be a tourist investor”00:39:10 - 10-15% growth on average per year00:42:09 - Organic growth vs M&AFollow PrivatEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuy⁠⁠Join HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small profitable niche businesses: ⁠⁠⁠⁠⁠https://privatequityguy.beehiiv.com/⁠⁠Kashyap on Twitter: ⁠⁠https://x.com/KChanchaniThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

My conversation with Daniel Priestley about how to become a "key person of influence" in the world of private equity, investing or small business acquisition.Being known in your own little world makes three things possible:- Finding better deals- Attract more capital on better terms- Have more talent wanting to partner with your companiesDaniel manages a portfolio of internet companies and has a team of 150 people.We discuss:– The biggest leverage is not capital, its enterprise - the ability to run a business– Becoming a key person of influence niche industry (hint: Buffett’s annual letters)– Growing portfolio companies using cold calling and email– Raising millions for your company by using cold outreach to content strategyShow Notes:00:00:00 - Intro00:01:07 - Growing the first company to $10 million in revenue in 3 years00:02:23 - Building a personal brand in the M&A, PE or small business acquisition world00:10:10 - Sending 150 messages per day to test the product, build the relationships00:13:39 - Cold outreach to content00:15:11 - Use waiting lists when raising capital; making transactions00:23:01 - Providing immense value to your peers00:31:03 - Going from online to offline to ACTUALLY raise capital and do the deals00:47:52 - The biggest lever is not capital, its enterprise - to run the businessFollow PrivatEquityGuy on Twitter: ⁠https://x.com/PrivatEquityGuy⁠Join HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small profitable niche businesses: ⁠⁠⁠⁠https://privatequityguy.beehiiv.com/⁠Daniel on Twitter: ⁠https://x.com/DanielPriestleyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

“Don’t stop trying…”Eran used to work as an airport security to pay the bills.Today, VerDiesel Group does $1 billion in revenue…Turns out that KFC and McDonald's used cooking oil can be VERY big business.Add biodiesel, biogas, feedstock… it gets HUGE.Everything we touched in the first 2-3 years failed. Everything. We tried to touch everything but we had no experience.Every time I did not have the money, I said I would find the money. I then went and found the money.We discuss:– 4 years of market research with no success– First serious breakthrough in 2012– Forming a partnership with a BIG petrochemical company with no money or experience– Importance of relationships00:00 - Intro00:42 - Company size, revenue, markets they serve with their products/services02:29 - Studying law at the University of Bologna, army, a bartender, moved from Israel to Italy in 200405:05 - How they found opportunities in early days - wind turbines, equipment for bicycles08:17 - Partnership. Relying on each other's strengthsand the job him and his partner did to cover bills in early days14:07 - 100+ meetings with people with 30-40 years of industry experience is why I'm here today22:09 - I know how to sell and solve problems with customers and suppliers40:10 - Big money business means big and expensive mistakes47:05 - The future of the VerDiesel Group53:49 - Be willing to give equity if it keeps your business alive56:06 - Much of my success is thanks to my wifeMy full conversation with Eran Efran , the co-founder of VerDiesel Group — Stream now.Follow PrivatEquityGuy on Twitter: https://x.com/PrivatEquityGuyJoin HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small profitable niche businesses: ⁠⁠⁠https://privatequityguy.beehiiv.com/⁠Eran on Twitter: https://x.com/Eran_EfratThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

If you are ever considering buying or investing in a profitable small business…Or you want to build a holding company where each company is run by a CEO...Here's my talk with Xavier Helgesen (co-founder of Enduring Ventures), where he shares everything he knows about buying businesses after 20+ acquisitions and looking at 1000s- Currently 17 companies in the portfolio- Revenue $100 million+- Spends plenty of time with family and children"Pay for Quality of Earnings even on small deals.""The best way to find a CEO for a business is to ask the seller who has asked about buying it in the past.""Look for the smallest, weirdest niches. Less competition, greater margins."We discuss:– Everything he knows about buying businesses after 20+ acquisitions and looking at 1000s– His MEMO to his 25-year-old self that he posted on his 45th birthday– The biggest risks and rewards of buying small businesses– What makes Nick Huber one of the best entrepreneurs he’s ever met– Finding the best CEO for Portcos00:00:00 - Intro00:00:31 - Most “bad” things that happen to you are not as important as they feel at the time00:04:29 - Selling Apple and Nvidia in 2011 and Google in 2008. “Don’t be me.”00:08:27 - Consistency for physical activity matters more than maximal excursion00:13:36 - Your most important mission in your 20s is to surround yourself with the most talented people in the world in your chosen craft and learn from them00:20:27 - Owner operated businesses are super efficient. Owner does six jobs. You will probably spend more to professionalize00:29:40 - Look for rich owners as there are a lot of small business owners who are not that rich00:37:34 - Make sure management only gets paid bonuses when they distribute cash flow to owners00:41:19 - The best way to find a CEO for a business is to ask the seller who has asked about buying it in the past00:43:35 - Most CEOs and entrepreneurs have no idea how to build an audience that they can use to raise capital or sell products and services00:56:46 - Don’t fall too in love with the business. You’ve always got to be ready to walk away.Follow PrivatEquityGuy on Twitter: ⁠⁠https://twitter.com/PrivatEquityGuy⁠⁠Join HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small profitable niche businesses: ⁠⁠⁠https://privatequityguy.beehiiv.com/⁠Xavier on Twitter: https://twitter.com/XavierHelgesenThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Imagine being in your early 30s, starting a private equity fund and raising $450 million as your first fund.All this with no prior track record and without your rich father or uncle.Years later, you own 90 companies, have $152 billion in AUM, your EBITDA is growing at 15% year-over-year, and only Thoma Bravo has outperformed you…True story, all the way from Switzerland…1. "Stock and bonds are boring, so we went into private equity."2. "The concept of thematic research helps us find the best companies with the strongest tailwinds (returns could 6-7 times invested capital)."3. "Step-by-step on we they took a $38M EBITDA business to $110M in EBITDA in 4 years."Here is my full research on a true king of private equity Mr. Urs Wietlisbach:Show notes:00:00:00 - Intro00:01:05 - “Stock and bonds are boring, so we went into PE”00:03:09 - When should one leave their job to start their business?00:04:10 - Being scammed by a crazy German $120,000 in the early days00:09:21 - Doing due diligence 582 days before the company is even for sale00:14:03 - Better returns than Blackstone, Apollo, only Thoma Bravo have done better00:15:24 - Thematic research allows them to find deals where they make 6-7 times their money00:20:01 - CEOs are tied with shares and sometimes make triple-digit millions ($100m+ from a single investment)Follow PrivatEquityGuy on Twitter: https://twitter.com/PrivatEquityGuyJoin HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small profitable niche businesses: ⁠⁠https://privatequityguy.beehiiv.com/This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Imagine raising millions for your startup…A team of 50 and significant revenue…Then getting FIRED from the same company you started…Then starting a boring traditional company that generates significant cash flow, so you could buy another company…And not just one, but 4 companies!!!And THEN, growing these businesses an average of 65% in the first year post-acquisition.All this in four short years.What a WILD story and an even wilder life for 34-year-old Chase.“It was a condensed MBA – 50 employees. Millions in revenue. Scaling the company at a double- and triple-digit YoY growth rate. I was a 23-year-old clueless entrepreneur trying to keep a ship together… Ultimately, getting fired from my baby.”Today, Chase is a new man, happy, relaxed, builds a business he never wants to retire from, travels the world with a kid, and Decada Group has 5 companies in its portfolio.We discuss:— Why slow growth may be the smartest thing ever d— The best companies plan for decades— Having fun daily, and genuinely enjoying building the company vs. arrival fallacy and chasing IRR— How to grow a business (SMB Growth Playbook)— 5 step guide on how to grow business by 65% in the first year post-acquisitionShow notes:00:00 - Intro00:31 - The wild story of raising multiple rounds of VC and then getting fired from your own company05:09 - Transforming a profitable lifestyle business into a serious cash cow type business and a portfolio of 5 SMBs07:05 - Building a holding company by accident. “It was never the idea.”14:50 - How to make sure opportunities come to you vs. you constantly chasing them18:48 - The technology revolution is not over, but the heyday is over23:32 - Overview of the current diversified portfolio of traditional businesses27:53 - How do they find companies to acquire while having ZERO competition on deals38:10 - Growing portfolio companies by an average of 65% in the first year post acquisition (How exactly?)54:51 - Pros and cons of focusing on single business vs managing a portfolio of companiesMy full conversation with Chase Murdock, the co-founder of Decada Group — Stream now.Follow PrivatEquityGuy on Twitter: ⁠⁠https://twitter.com/PrivatEquityGuy⁠⁠Join HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small profitable niche businesses: ⁠⁠⁠https://privatequityguy.beehiiv.com/⁠Chase on Twitter: https://twitter.com/chasemurdockThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.