Insider Media’s Post

Private equity companies continue to saying that #talent is the most important factor in driving growth and in particular the #CEO role. A new report from Heidrick & Struggles says that PE firms must learn to assess potential operating company CEO candidates for the future rather than relying largely on past performance to understand potential. Let’s take a closer look >> https://lnkd.in/eviQnVe6 #PrivateEquity

As the market shifts yet again, we're witnessing a significant increase in transaction activity, with over 70% of private equity firms anticipating more deals in 2024 than in 2023. For hiring teams, this shift presents new opportunities and challenges. In our latest blog, JM Search Managing Partners Charles Egoville, Andrew Henry, and MaryJeanne (MJ) Scott outline three key considerations for hiring teams as they seek to attract and retain top talent. https://lnkd.in/ejX4hMTv

Talent acquisition in the private equity industry is changing dramatically. Recently, our team attended Hunt Scanlon’s “PE Operating Partners Talent Forum: Designing a New Talent Playbook for Growth” in New York, where we talked with 350+ PE professionals and executive search experts about today's hiring challenges and strategies. Some key takeaways: ✔️Evolving PE Landscape: Pre-COVID vs. Post-COVID dynamics. ✔️New Focus Areas: Emphasis on culture, talent, and leadership. ✔️Rise of Operating Partners: Essential for long-term value creation. ✔️Hiring Priorities: Importance of PE experience, technical skills, and personal traits. 🔗Check out the full article to dive deeper into these insights and more: https://lnkd.in/etXUiP7b What challenges and opportunities have you seen? Comment below. Would you be interested in connecting on PE opportunities? Reach out to our team at INFO@FORUMGRP.COM

Here’s our latest installment of Fortune’s “How to Get a Job” series. This time we’re looking at Thoma Bravo, arguably one of the most successful firms in private equity. Thoma Bravo, led by Orlando Bravo, has invested in more than 490 software and technology companies. It’s much leaner than many of its rivals and it’s also one of the few PE firms returning money to investors right now. Getting a job in private equity isn’t easy and it’s often complicated. PE firms, including Thoma Bravo, typically look to investment banks to produce fresh talent that they can hire for associate roles. This has caused some tension with on-cycle recruiting. In early August, JPMorgan told its newly hired banking analysts to inform the IB if they accept any future offers with PE. JPM also said it was reviewing its policy and may reconsider the status of bankers that have accepted offers. Thoma Bravo, weeks later, has changed its recruiting practice.  #privateequity #deals #recruiting

Down times offer PE firms the greatest opportunities. Profitable companies consider selling to get more resources for growth, Family Businesses consider retiring and many do not have successors lined up, Companies consider partnerships to inject capital and strategic partners. So what can a good PE do right now? Network and Partner. ·     Expand your network and begin to talk to those with Dealflow: -Mentors, Advisors, Fractionals, Other investors, VCs ·     Family Offices with companies that they’ve invested in that feel they can reach larger markets with PE firms backing them, including becoming a Port Co ·     Founders that are making impacts on the market but need some guidance on how to channel the market and need additional resources that a PE might be able to hire on a short-term basis With these in mind, PE firms can make Strategic M&As that might not be available during a normal market. Take that risk and it might be an enormous impact that can effect you positively on a long term basis.

I think many in my PE network may find this article interesting. We often work with operating partners of PE firms and we have seen the roles changing and elevating over the last 5 years (when Craig Group was founded). We strongly believe that improving organic revenue growth via commercial excellence (Go To Market strategy and execution) can be a powerful tool in value creation for PE backed portfolio companies. We are pleased to partner with operating partners and the company management teams to speed up growth. Any thoughts from my network? https://lnkd.in/em6TiY3A

Operating Partners past, present and future: This article makes some valid points about the ambiguity and amorphous nature of the OP role to date. As it points out, this is changing, and appropriately so. Join our Operating Partner Roundtable, a free collaborative discussion group that is part of TheOperators.pe

The more I have thought about what it takes to be successful in helping a company that doesn't really belong in the public markets anymore transition to being private, the more I realize it is tied to how we engage with management teams. At Devonshire, we aim to be supportive, non-threatening partners who are positioned somewhat differently from strategics and traditional lower middle market PE firms firms. Within that, we have crafted a set of ground rules that we are going to live by as we engage with management. Below is what we came up with. I would love to hear feedback on these from anyone who runs a company, especially a public one, or has dealt with sponsors in the past. Anything glaring that I am missing? Thank you! 1.     We only go into situations where we can foresee a lasting partnership and win-win outcome for the company and Devonshire. 2.     We only engage with companies we would like to invest in personally and would expect to be involved with for a minimum of 5 years. 3.     We only approach management teams our diligence suggests have a high degree of integrity. 4.     We are never trying to steal companies from public markets and investors. In a take-private, we seek to pay a good price for a solid business and to allow compounding to widen our margin of safety. With companies that will remain public, we have no interest in creating onerous securities that strangle the company. There are already too many predatory and “loan to own” players in the microcap space. 5.     Leverage is a tool in our toolbox—but it is not the only tool—and we will use it judiciously. 6.     A valuable partner comes with solutions that are specific to the company. We are not going to fit a round peg into a square hole. It is our job to come up with the right financing and capital solution, and if we can’t, we will happily let someone else do it. 7.     The best outcome possible is for management to be fully bought into our solution and for the team to be financially aligned with Devonshire. 8.     We have a seasoned team and we can execute a diligence process quickly. A fast close is also something we strive for in every situation. 9.     Our job is not to tell anyone how to run their business. We want to be supportive and use our experience in operations, capital markets, governance, incentive alignment and capital allocation to help a business thrive. But, if we don’t believe our collective skill sets and experiences can lead to meaningful improvements over time, we will refrain from engaging. For every deal, we ask ourselves, “why are we good owners of this business?” If we don’t have a well-researched answer that includes a detailed plan of action, we will pass. 10.  Another aspect of our role is to serve as an active bridge between our company partners and the other constituents who can be helpful, including customers, capital providers, industry experts, Board Members, and potential employees.

Takeaways from a fascinating discussion with Michael Levy, CEO of Crow Holdings... 1. Capital is concentrated. 10 sponsors control more than half of global equity. 2. Thinking vs. processing. Modeling skills are important, but punching numbers isn't enough. Careers are often defined by the instinct that comes from thinking about how models apply to real-world situations over many years. 3. Leverage is the problem. ...always. Michael spent 20 years as an investment banker and has been the CEO of Crow Holdings for eight years. When asked about common themes to real estate problems, his answer was simple: debt. 4. Life's too short to have bad partners. Real estate players have very different approaches to joint ventures. Some approaches aren't admirable. Be a great partner and avoid working with bad partners. 5. Don't sleep on client coverage roles. Acquisition roles may be our industry's fighter pilots, but great firms tend to invest in client support teams and fundraisers. These roles are increasingly important. 6. Take headlines with a grain of salt. If you're early in your career, it would be easy to get bummed out by all the negative headlines. But those headlines aren't weighted. Most sectors are fundamentally healthy, and the obsolescence curve of talent is exponential (i.e., leaders will increasingly be headed toward the exit), creating significant opportunities. 7. Don't bet against U.S. real estate Supply and demand are, across the board, in relative balance, and capital needs real estate exposure. ---------------- Michael Levy, thanks again for your time and engagement. Your enthusiasm for our business is contagious!

With over 100,000 advisors planning to retire in the next decade—and 26% lacking a succession plan—the opportunity for M&A is ripe. I spoke with Tobias Salinger at Financial Planning about how successful firms in the M&A space have shifted from an employee mindset to an entrepreneur and to a dealmaker mindset, and prioritize training, growth, and equity opportunities to break into the next level of enterprise maturation.  Check out the article citing the latest Cerulli Associates report to learn more: