Private Equity Experience

In this episode, hosts Ed Barton, Rory Liebhart, and Emily Sander dive into the world of management fees in private equity. They discuss how PE firms make money, what founders and management teams need to know, and the importance of understanding management fees in deal negotiations.

Key Takeaways:

• Management fees are a crucial aspect of private equity investing, and understanding them is essential for founders and management teams.
• PE firms use various fee structures, including management fees, carried interest, and carried capital.
• Management fees can be a significant source of revenue for PE firms, but they can also be a major source of stress for founders and management teams.
• Understanding management fees is critical for navigating deal negotiations and ensuring a successful exit.

Actionable Tips:

• Founders and management teams should understand the management fee structure used by their PE firm.
• PE firms should be transparent about their management fee structures to ensure a smooth deal negotiation process.
• Understanding management fees is essential for navigating the complexities of private equity investing.

Timestamps:
00:34 Diving into Management Fees
02:56 Impact of COVID on Private Equity Funds
10:22 Current Market Challenges and Strategies
24:05 Navigating PE Firm Funding Challenges
25:48 Understanding Carry and Management Fees
29:36 Strategic Advice for PE Firms
34:35 Impact of Debt and Interest Rates

==============================

🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

================================

Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory

Ed Barton and Rory Liebhart join Emily Sander to discuss the implications of President Trump's election for a second term on the private equity industry. The hosts discuss historic impacts, potential changes in legislation, shifting demographics, and the potential for a US-China conflict.

Key Points:

The show's hosts, Emily Sander, Ed Barton, and Rory Liebhart, reflect on the implications of Trump's re-election and the potential impact on the private equity industry and the broader economy.

They discuss the importance of demographics, cultural shifts, and geopolitical events in shaping the economic landscape.

Topics covered include:

-The 2017 Tax Cuts and Jobs Act, which reduced corporate tax rates, increased standard deductions, and lowered capital gains tax rates, is set to expire in 2025.

- Lower corporate tax rates provide more money for reinvestment or distribution to investors.
Increased standard deductions (for individuals) and lower capital gains tax rates make investing more attractive.

Trump's victory was more sweeping than anticipated, giving him control of both houses of Congress, which could impact the renewal of certain tax provisions.

- Interest rates have decreased, allowing private equity firms to leverage more debt for their investments.

- Baby Boomers are aging out of the workforce, and there may be demographic and cultural shifts that impact the economy and politics.

- Dark Horses (Surprising but Possible Scenarios):

Rory: A Trump administration that fully delivers on its pro-capitalist platform.
Ed: Escalation of conflict between the U.S. and China over Taiwan or North Korea, potentially dragging China into a conflict with the U.S.

==============================

🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

================================

Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory

In this inaugural episode of The Private Equity Experience (PEX), we're taking the first step in exploring the world of private equity. We'll introduce its role in today's business landscape and explain how it's become a valuable option for small businesses. 

Whether you're a founder considering private equity for growth capital or personal liquidity or simply curious about how private equity compares to venture capital, this episode provides a great starting point.

We'll cover the basics of private equity, including leveraged buyouts and assets under management, to give you a solid foundation in this crucial part of the global economy.

We'll give you a clear understanding of private equity firms, how they manage investments, and the importance of transparency and due diligence in PE transactions. You'll also get an introduction to how private equity funds are structured and how they aim to increase value through operational and financial efficiencies.

Links Mentioned:

• Private Equity Experience Website

Timestamps:
0:00 - Introduction to the podcast and hosts
2:01 - Emily's background and experience with private equity
3:51 - Ed's background and experience in private equity-backed businesses
6:41 - Rory's background in financial services and private equity
8:44 - What is private equity, and what gap does it fill in the market?
10:33 - Historical context of private equity's development
14:07 - Explanation of assets under management (AUM) in private equity
15:32 - Definition of leveraged buyout (LBO)
18:10 - Major players in the private equity space
19:45 - Explanation of limited partners (LPs) and where PE firms get capital
23:52 - How private equity firms make money (management fees and carried interest)
28:17 - Reasons why founders might consider private equity funding
32:39 - Different types of private equity firms and their focus areas
33:49 - Who is not a good fit for private equity funding
35:32 - How private equity differs from venture capital and other types of investors

==============================

🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

================================

Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory

Our first full episode will drop next week - subscribe now so you don't miss it!


Private Equity Experience

Demystify the world of private equity with insider knowledge.

Join hosts Ed Barton, Rory Liebhart, and Emily Sander - seasoned professionals who have worked from all angles as C-suite leaders, private equity managing directors, and investors.

In this podcast, they break down complex private equity concepts into everyday language. You'll gain a clear understanding of the PE landscape, key players, and market dynamics. Expect practical insights on deal-making, growth strategies for founders and management teams, and exit strategies. Plus, hear real-world examples and real-time breakdowns of trending news stories.

Whether you're a seasoned pro or just starting out, considering selling your company to a private equity firm, or simply curious about this lucrative world, this podcast will help you navigate the private equity landscape with confidence.

==============================

🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

================================

Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory