The Private Equity Podcast, by Raw Selection

Introducing Bryan Gordon

Bryan Gordon is the Founder of “Madison Ventures+” Property Investments, a fund that has overseen the raising and deployment of over $1.1 billion of equity capital - generating an average annual return of over 30%. Bryan boasts over 35 years of experience as a serial entrepreneur, private equity investor, and risk management consultant. 

What You Will Learn

Focusing on the Upsides Versus Focusing on the Downsides

Team Culture in PE Firms

The Value of Human Capital

Breakdown

[00:45] Getting to Know Bryan Gordon

[01:41] Common Mistakes by PE Firms and Their Portfolio Companies

[03:56] Why People Are Essential for PE Success

[05:20] Important Attributes of a Top Performer

[08:10] Advice for PE Firms Looking for Long-Term Investments

[11:40] How Bryan and His Team Achieves Yearly 25% Returns

[14:05] Things Bryan Likes and Dislikes About Private Equity

[18:30] Shifting from a Fund-Based Structure

[20:35] Bryan’s Go-To Self-Improvement Resources

[22:45] Parting Thoughts 

Why People are The Most Important Element in a PE Firm 

The team element is crucial when finding and closing deals. Gone are the days when machinery and other tangible assets created value in an organization. Today it’s all about teams, execution, and intellectual capital. Your people are responsible for the way organizations transform data and resources into profitable deals to invest in. They bring unique talents and perspectives that can contribute to innovation and creativity within the organization. Bryan explains that when people are engaged and committed to their work, they are more likely to go above and beyond to ensure the organization's success.

Overall, people are the lifeblood of an organization. They are the ones who drive its success, bring it to life, and make it thrive. Without people, a firm cannot achieve its goals, deliver its mission, or create a positive impact on its stakeholders.

How to Contact Bryan

Madisonventuresplus.com

Bryan’s email: [email protected]

Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor by Seth A. Klarman

The Art Of War by Sun Tzu

Harold and the Purple Crayon by Crockett Johnson

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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 [email protected].

Introducing Kevin Moyer

Kevin Moyer is a Partner and Leader of the Transaction Advisory Services at Sax Capital Advisors, a nationally ranked accounting, tax and business advisory firm. He brings over a decade of experience and is responsible for the overall strategy and the delivery of client-related services. His robust knowledge lets him advise clients on financial and operational diligence, finance transformation, and corporate restructuring mandates. 

What You Will Learn

How the Top PE Firms Deploy Capital

The Importance of KPI Dashboarding

How to Get the Most Out of Available Data

Breakdown

[00:00] Who is Kevin Moyer?

[01:46] Common Mistakes by PE Firms and Their Portfolio Companies

[03:32] How the Best PE Firms Deploy Capital

[06:00] Kevin’s Transition From Finance to Private Equity

[09:36] How to Gain the Most From Available Data

[11:19] Ways to Drive Change in a Portfolio Company

[13:25] How to Prepare Your Firm if We Do Have a Recession

[15:26] What Kevin Likes and Dislikes About Private Equity

[17:32] Kevin’s Go-To Self-Improvement Resources

[20:08] Parting Thoughts 

Getting the Most Out of Your Data in Private Equity

When it comes to success in private equity, you need to use data to your advantage. There are data sets that exist within companies that many companies don’t know how to use the data. It gets worse when you realize that even more of these firms don’t know how to structure unstructured data. According to Kevin, the best PE firms know how to use unstructured data as a predictive mechanism going forward. And by doing that, you’re much more dangerous as a firm. It also makes adapting and pivoting before or during a catastrophic event possible. 

With debt markets in turmoil, PE deals that dominated business headlines in recent years have gone missing. Yes, all firms are always looking out for new investment opportunities. But the best firms know that their existing portfolio companies are equally important. This is why they have systems to structure unstructured data to better manage their existing portfolio companies and maximize their return on investment faster and more efficiently.

How to Contact Kevin:

Sax Capital Advisors

Kevin’s email - [email protected]

Kevin’s phone number: 973-472-6250

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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 [email protected].

Introducing Jay Goldman

Jay Goldman is the Co-Founder and CEO of Sensei Labs, a Conductor used by the world's top organizations to orchestrate their most critical transformations. Jay and his team enable project management, collaboration, data tracking, and knowledge management that modern organizations need to be successful.

What You Will Learn

• Sources of Value Creation in Private Equity
• The Accelerated Use of Technology in PE Firms
• People Strategies and the Future of Work

Breakdown

[00:45] Getting to Know Jay Goldman

[01:41] Common Mistakes by PE Firms and Their Portfolio Companies

[04:46] Value Creation in Private Equity

[06:30] What is Portfolio Orchestration?

[11:05] The Best Way to Raise Capital in Private Equity

[16:00] Play Books to Help Accelerate Value Creation in PE

[19:30] Technology Integration in Private Equity

[27:17] The Future of Work

[35:40] Consequences of Automating Human Labor

[39:08] The Real Value of Work and More Engaging Tasks

[43:05] Things Jay Likes and Dislikes About Private Equity

[46:40] Jay's Go-To Self-Improvement Resources

[51:47] Parting Thoughts

Value Creation in Private Equity

What are some of the challenges and opportunities in private equity regarding value creation? According to Jay, value creation is a term that has been euphemistically used in the past to mean firing people. Of course, this is not what's happening or what it means in the industry today. Much has changed, and now more funds are determined to create value. Today, PE firms are focused on building better businesses by growing their ability to produce revenue, built on acquisitions, geographic expansion, repricing, or new product lines. However, this is not to say that cost reduction is not essential because it will always be a factor in almost every value-creation plan. But it is now less emphasized than it was in the past.

How to contact Jay

Jay on LinkedIn

Senseilabs.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 [email protected].

Introducing Jim Roth

Jim Roth is the Founder and CEO of Zamo Capital, Europe’s first specialist investor in

impact, private equity, and venture capital firms. Founded in early 2018, Zamo invests in impact managers, providing capital, expertise, and an established network of investors to help raise new capital. Jim’s ability to identify and develop untapped market opportunities previously led to their co-founding LeapFrog Investments in 2007, a world-leading private equity manager that was ranked by Fortune as one of the top 5 Companies Changing the World. The fund was also endorsed by President Bill Clinton, who observed: “Leapfrog’s team is widely recognized as having opened up a new frontier for alternative investing.”

What You Will Learn

• Opportunities for
• Impact Investors
• How Responsible Investing Delivers Superior Financial Returns
• Why Demand For Impact Investing Is Rising

Breakdown

[00:45] Getting to Jim Roth

[01:37] Common Mistakes by PE Firms and Their Portfolio Companies

[02:54] Why Jim Decided to Foc

us on Impact Investing

[04:30] The Rising Demand for Impact Investing

[08:24] Jim’s Definition of Impact Investing

[10:44] The Type of Impact People Invest In

[14:07] How Zamo Helps New Impact Investors Scale

[17:52] Lessons From Managing Leapfrog

[20:01] The Challenges Jim Faced When Scaling Leapfrog

[23:27] How to Attract and Retain Top Talent

[26:19] Things Jim Likes and Dislikes About Private Equity

[28:39] Jim’s Go To Self Improvement Resources

[30:40] Parting Thoughts The Rising Demand For Impact Investing

When most people think of investing, they immediately jump to publicly traded stocks or bonds. However, all that is starting to change with more and more people looking for investments that positively impact society. Impact investing is a relatively new approach to investing that aims to generate measurable social and environmental benefits alongside financial returns. It has gained popularity recently as investors increasingly seek to align their investments with their values and contribute to positive change in the world.

The rise of impact investing is driven by several factors. First, there is a growing awareness of the pressing social and environmental challenges facing the world, such as climate change, poverty, and inequality. Investors recognize the need to address these challenges and are turning to impact investing as a way to do it. Secondly, and most importantly, impact investing has become more accessible in the mainstream in recent years. The increasing number of impact investing funds has made it easier for investors to find and invest in opportunities that align with their values.

How to Contact Jim

Jim’s LinkedIn: https://www.linkedin.com/in/jim-roth-zamocapital/

Zamocapital.com

Contact Jim via email:

[email protected]

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 [email protected].

Introducing Pari Natarajan
Pari Natarajan is the CEO of Zinnov LLC, a leading Management Consulting firm that helps organizations globalize their businesses, tackle organizational challenges & build institutional capability. Pari and his team assist technology companies in improving their engineering efficiency and innovation capabilities through the effective use of globalization. He also works with large enterprises to help them build their internal technology organization and transform them into digital enterprises.

What You Will Learn
The Basics of Value Creation in PE Deals

Ways PE Firms Can Successfully Transition a Business to a SaaS Model

How AI is Revolutionizing the Private Equity Space

Breakdown

[00:45] Getting to Know Pari Natarajan 

[01:20] Common Mistakes by PE Firms and Their Portfolio Companies

[02:37] Investment Opportunities for PE Firms in 2023

[05:03] Steps to Successfully Transitioning to a SaaS Model

[06:31] Why the Tech Industry is so Attractive for PE Firms

[09:35] Technology Adoption in Private Equity

[14:41] AI in Private Equity and What it Means for the Industry

[19:17] Understanding the Core Aspects of Value Creation in PE Deals

[22:26] Why Growth is Risky Business in Private Equity

[24:57] Things Pari Likes and Dislikes About Private Equity

[26:50] Pari's Go-To Self-Improvement Resources

[27:31] Parting Thoughts 

Investment Opportunities for PE Firms in 2023
Most private equity investors agree that 2022 was an okay year for PE firms. And with inflation and volatility still an issue in this economy, we could still have unique opportunities in 2023. That said, Pari believes PE firms should focus more on industries that provide recurring revenue streams. However, the SaaS model of selling subscription-based products is no guarantee of success. Companies with a concrete SaaS model are valued much higher than companies without a subscription model. Plus, the steep incline in PE firms buying SaaS means competition for well-functioning companies is high. But with proper research, you can still find companies worth investing in, recapitalizing, and outright buying in 2023. 

AI In Private Equity
AI use is hot right now in almost every industry. Private equity is the latest industry to experience an AI takeover as more businesses look to take advantage of the practical applications of AI in business growth. As Pari explains, most PE firms are using AI to improve the state of their workflows and increase efficiency in day-to-day tasks. He highlights that AI in private equity falls into these three major buckets: 

1. Deal sourcing: AI can identify potential investment opportunities by analyzing large amounts of data from various sources, including social media, news articles, and industry reports. 
2. Automate Manual Processes: Most processes in private equity firms are outdated and inefficient, with many of them manual. PE firms can streamline workflows by using AI to automatically update these processes and facilitate the transfer of data instantaneously with little to no manual intervention.
3. Performance Through Systems of Intelligence. AI can help private equity firms optimize the performance of their portfolio companies by analyzing large amounts of data and identifying opportunities for improvement. 

How to Contact Pari

Pari's LinkedIn :  https://www.linkedin.com/in/parinatarajanzinnov/  

Matthew Carr is the Co-Founder and Head of Research & Technology at Atum Cell - a firm that provides leading-edge cybersecurity software, hardware, and services for companies and government agencies in North America and Europe. He is an award-winning cybersecurity researcher and penetration tester specializing in cyber threat management. He held senior positions in security at IKEA, IBM, and SecureLink, where he built a strong base of real-world experience.

What You Will Learn

The Rising Number of Cyber Attacks on Private Equity 

Best Practices and Why All PE Firms Need to Build a Cybersecurity Culture

Common and Emerging Cyber Threats Currently Plaguing PE Firms 

Breakdown

[00:45] Getting to Know Matthew Carr 

[02:13] Common Mistakes by PE Firms and Their Portfolio Companies 

[04:19] Types of Cyber Attacks Targeting PE Firms

[07:51] Cybersecurity Threats and Vulnerabilities in Private Equity

[11:22] How PE Firms can Build and Implement a Cybersecurity Culture

[15:00] Easy Ways to Improve a PE Firm's Cybersecurity

[19:26] Take This One Action Step to Protect Yourself Against Cyber Threats

[22:45] Reasons Why Cybersecurity Awareness Training is Important

[27:15] Matthew's Go-to Self-Improvement Resources

[28:52] Parting Thought

Common Cybersecurity Attacks in Private Equity 

Although cybersecurity is a big concern in almost all industries, cyber attacks on PE firms have increased in recent years. Interestingly, the threats are not only a problem for firms with deep pockets but extend even to small upcoming companies. For a PE firm, data breaches can have business-ending consequences. For example, they spook investors, negatively impact valuations, and damage a firm's reputation. 

According to Matthew, these are some of the most common ways hackers target PE firms.

●        Social Engineering - This is the simplest and most common attack in PE right now. Attackers use psychological manipulation to gain access to confidential information or resources.

●        Known Vulnerabilities - Expert attackers leverage known vulnerabilities in a system to gain access to a PE firm's data. A typical loophole is outdated systems. Matthew explains that using outdated software presents numerous security vulnerabilities that put your data and business at risk.

●        Zero-Day Vectors - Zero-day attacks stem from an operating system or computer software flaw unknown to the software's publisher. The term "Zero-day" is scary because it is unknown, and there is no patch or antivirus for this vulnerability.

●        Zero-Click Attacks - These attacks are fully remote and provide access to a victim's data in real time and without any action from the target. Zero-click attacks are dangerous because they can take place without the victim clicking on a malicious website or app.

Other Media References

Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones by James Clear 

The Slight Edge by Jeff Olson

How to Contact Matthew

Atumcell.com

Matthew's LinkedIn 

Matthew's email address - [email protected]

Introduction to Stephen

Stephen Madsen was the Director of Business Development & Capital Markets at Monomoy Capital Partners, a private investment firm with over $2.7 billion in assets under management. Monomoy invests in the equity and debt of manufacturing and distribution businesses that can benefit from operational and financial improvement. Stephen specializes in mergers & acquisitions, deal sourcing, private equity relationship management, and B2B relationship management.

What You Will Learn

The Rise in Deal Origination in Private Equity

Ways to Build a Deal Origination Team From Scratch

Why You Need to Take Notes in Private Equity

Breakdown

[00:47] Introducing Stephen Madsen

[03:48] Biggest Mistakes by PE Firms and Their Portfolio Companies

[06:59] Why Deal Origination is Such a Big Thing in Private Equity

[09:54] Should You Have a Separate Deal Origination Team?

[14:03] Benefits of Building a Standalone Business Development Team

[17:10] More Versus Less Information in Deal Origination

[21:26] Steps to Forming a Strong Intermediary Relationship 

[25:13] ROI on a Typical Business Development Relationship

[28:40] How to Measure the Success of Your Deal Origination Efforts

[33:10] Taking Notes and Why It's Important 

[35:50] Things That Define a Top Performing Individual 

[38:17] What Stephen Likes and Dislikes About Private Equity

[43:10] Parting Thoughts

What is Deal Origination in Private Equity? 

Deal origination in private equity refers to the process of identifying, sourcing, and evaluating potential investment opportunities in private companies. This typically involves a combination of market research, networking, and outreach to entrepreneurs and business owners. The goal is to find businesses with attractive growth potential, strong management teams, and clear pathways to generating returns for investors. According to Stephen, deal origination is a key component of a private equity firm's investment strategy, as it helps them identify and secure attractive investment opportunities.

Why You Need to Have Intermediary Relationships in Private Equity 

Intermediary relationships in private equity are important because they provide access to a wider pool of investment opportunities. Stephen explains that they also help build a strong network of contacts. Intermediaries often have deep connections within the business community and can help private equity investors identify attractive investment opportunities they may have yet to be aware of. Additionally, these relationships can provide valuable insight into industries, market trends, and other factors that can impact investment decisions. Stephen believes these types of relationships can make or break the chances of a PE firm achieving long-term success. 

How to Reach Tim

Stephen's LinkedIn

Monomoy Capital Partners

​​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 [email protected].

Introducing Chris Ayala

Christopher Ayala is the Managing Director of Drum Capital Management, a specialized investment management firm dedicated to deep value, lower middle market investment opportunities, including special situations, turnaround, and restructuring strategies. Chris and his team have invested over $1.3B in an array of direct equity positions, co-investments in operating businesses, and fund investments in high-quality, sector-focused private equity funds.

What You Will Learn

Tips For Effective Communication in Private Equity

The Psychology of Exiting a Business

Business Operations in Private Equity

Breakdown

[00:45] Getting to Know Chris Ayala

[03:50] Why Chris Moved from Business Operations to Private Equity

[06:20] Becoming a Better Investor and Closing More Deals

[09:36] Things Chris Misses the Most About Operations

[12:35] How to Become a Better Leader in PE

[16:20] Opportunities in the Building Products Space

[20:11] Things Chris Likes and Dislikes About Private Equity

[23:46] Chris' Go-To Self-Improvement Resources

[25:52] Parting Thoughts 

How to Become a Better Leader in Private Equity

Private equity leaders play a crucial role in their firms' success. According to Chris, effective communication is one of the most important skills a leader can possess in PE. It helps ensure that everyone is aligned with the firm's goals and working together to achieve them. If you're new to a role or an organization, you need to over-communicate from day one. Understand that everybody around you wants to know what's going on. So you need to have an open line of communication. This doesn't mean oversharing because too much information can be overwhelming. But they need to know the firm's performance, strategy, and goals. This will help your team feel more engaged and invested in the firm's success.

How to Contact Chris

Chris on LinkedIn

Connect with Chris via email: [email protected]

Drumcapital.com

Call or Text 9176562963

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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 [email protected].

Introduction to Tim

Tim O’Reilly is the Founding Chief Financial Officer of Frontier Service Partners and is a well known transformational leader in the sphere of trade and private equity organizations. Tim has served to help organizations set themselves up for long-term growth, becoming a beacon for companies to adapt to their respective markets. Aside from his multiple leadership roles across the industry, Tim also has a background for taking his MBA and Accounting undergrad course at the University of Central Florida.

What You Will Learn

New Solutions for Greater Returns to Investors

How to Set Your Businesses Long-Term

Technology and Software, as well as Industrial Service-Based Industry

Breakdown

[00:28] Introduction of Tim

[05:28] Mistakes and Solutions in PE

[10:31] Insights on Tech and Industrial Service-Based Industries

[18:50] Challenged and Success Encountered

[28:04] Integration of Multiple Organizations for Long-Term Growth

[37:52] Media Influences of Tim

[45:33] How to Reach Tim

[46:30] Attributes That Make a Top Performer

Technology and Industrial Service Sector

As a veteran in the industry, Tim shares his experience working for PE-backed organizations in the technology and industrial service-based industry. The industry is rapidly changing and the dynamics of customers and products often change overtime. Tim elaborates that these changes will not slow down and the companies in the industry need to adapt fast in order to project themselves long term with their partners.

The Long Road Ahead

Tim shares his strategy for companies in the tech and industrial service industry. The strategies he mentions are aimed towards setting up the companies for at least 3 to 5 years of growth. These include generating a thesis to market their products and services, getting the right people on board to establish the proper work culture, knowing your customers and partners to have a deeper understanding of the products you are selling, and having that creative mindset that could set you apart from your competitors and attract more investors.

Other Media References

Private Equity Playbook by Adam Coffey

The Exit Strategy Playbook by Adam Coffey 

Seven Habit of Highly Effective People by Stephen Covey

The First 90 Days by Michael watkins

Capital Gains: Smart Things I learned by Doing Stupid Stuff by Chip Gains 

Alexander Hamilton by Ron Chernow

How to Reach Tim

Tim’ Linkedin

Tim’s Facebook

Tim’s Email: [email protected]

​​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 [email protected].

Introducing Salvatore M. Buscemi 

Salvatore M. Buscemi is the CEO and co-founder of Dandrew Partners - a private family investment office that has managed money successfully for almost 20 years by creating multiple portfolios on various cross-asset platforms. Sal is a frequent speaker and guest lecturer on real estate finance at professional symposia. He has written numerous books and articles on real estate and private equity finance in various publications, including Investor's Business Daily and Forbes, and on television shows such as CBS New York and Good Morning LaLa Land. 

What You Will Learn 
Ways VC Firms Can Improve Their Portfolio Company's Brand Awareness 
What to Expect From Silicon Valley Bank's Abrupt Closure 
How the .001% of People Invest 

 Breakdown 

[00:47] Getting to Know Salvatore Buscemi 
[03:35] Common Mistakes by PE Firms and Their Portfolio Companies 
[06:25] How to Use Media to Bring Awareness to Your Portfolio Companies 
[07:42] Only Investing in Companies with Strong Founders 
[11:30] Recent Successes in Sal's Portfolio 
[13:30] How to Top .001% Invest 
[16:30] The Herd Mentality in Silicon Valley 
[20:46] Why Not All Ideas Get Funded 
[22:40] Venture Capital in a High-Interest Rate Environment 
[25:33] VC Firms Focusing More on Quality Companies 
[28:14] What More Expensive Debt Means For VC Companies 
[30:40] Advice on How to Make Better Quality Investments 
[34:54] Things Sal Likes and Dislikes About Private Equity
[36:24] Pari's Go-To Self-Improvement Resources 
[37:25] Parting Thoughts  

How the .001% Invest 
The .001% of people invest differently than the middle class. Anyone making $150,000 a year is in the 1%. Even though they essentially make a lot of money, they typically don't invest like the super wealthy. Why? Because they have a lot of debt, they are wage earners - so they can be fired at a moment's notice. Plus, they look at investing as a way to grow wealth in a short period of time. So, essentially their investment mandate is to get rich quick. In contrast, the top .001% focus on capital preservation and increasing status. You won't find them buying the latest Gucci shoes, but you will find them discussing how to buy a sports team or leave a permanent mark in the world. 

 Why You Need to Build Better Networks  
The people who have the worst investments have the worst networks. If all the people in your network are concentrated in one specific niche, that's a problem. According to Salva, you need to spend a disproportionate amount of time networking. This is the only way you can guarantee a healthy deal flow. Building a strong network of people can lead to new opportunities you may not have had access to otherwise. Your network can connect you with potential clients, employers, and other professionals who can help you grow your business or advance your career.  Whether you're looking for new opportunities, support, different perspectives, learning opportunities, or collaborations, you need a strong network of people. So take the time to invest in networking, meeting new people, attending conferences, and building meaningful relationships with the people in and out of your area of expertise. 

How to Contact Sal 

Salvatore's LinkedIn  ,Investinglegacy.com ,Investing Legacy: How the .001% Invest by Salvatore Buscemi