Welcome back to The Private Equity Podcast, by Raw Selection. Our host, Alex Rawlings is joined by Sanjay Chandra, Managing Partner of Trinity Investors, a Private Equity firm based in Texas. Sanjay brings decades of experience as an operator, entrepreneur, and private equity investor. In this episode, we explore how he scaled businesses from single-digit EBITDA multiples to double-digit exits, his unique journey from operator to investor, and Trinity’s focus on domestic manufacturing and industrials.

Breakdown:

[00:29] Sanjay shares his journey from immigrating to Texas as a child, excelling academically, and starting his career at Arthur Andersen before transitioning into entrepreneurship.

[01:58] Founding American Leather, growing it into a $300–$400 million business with 1,600+ employees.

[03:24] Sanjay discusses the founding of Trinity Investors, growing it into a $7 billion AUM alternative asset manager, and the firm’s focus on operating companies and commercial real estate investments.

[07:17] Reflecting on mistakes in private equity, Sanjay emphasizes the importance of exiting troubled investments quickly and shares how Trinity has adjusted its processes to respond to challenges more decisively.

[09:46] Sanjay explains how his experience as an operator helps him empathize with founders and better understand the challenges they face in the lower middle market.

[11:42] Advice for private equity professionals without operational experience: spend time on the shop floor, listen to management teams, and immerse yourself in the business beyond financial reports.

[13:08] Sanjay highlights Trinity’s focus on domestic manufacturing in the U.S., explaining why the firm prioritizes single-digit entry multiples with growth potential through operational improvements and strategic investments.

[16:04] Insights from growing American Leather: the value of patience in scaling companies, focusing on steady growth, and the compounding benefits of later years in business.

[19:29] Sanjay discusses the challenges of implementing infrastructure, upgrading management, and transitioning companies to professional operations, emphasizing the importance of respecting founders’ knowledge and contributions.

[22:55] Sanjay shares his passion for mentorship, explaining how he invests in the growth and development of leaders across Trinity’s portfolio companies and his philanthropic initiatives.

[25:21] Sanjay talks about his love for lifelong learning, mentioning his recent exploration of AI and continuous efforts to stay at the forefront of technology and innovation.

[28:38] How to reach Sanjay via email or LinkedIn, along with his openness to connecting with new people and sharing his insights.

[29:37] Closing remarks from Sanjay, reflecting on his journey and the value of entrepreneurial experiences, followed by Alex thanking him for his time and insights.

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Sanjay on LinkedIn here or via email at sanjay@trinityinvestors.com.

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

Welcome to The Private Equity Podcast, by Raw Selection. Host Alex Rawlings interviews Randy Cohen, a lecturer at Harvard Business School, and Jean-Louis Lelogeais, co-founders of PEO Partners. Together, they dive into liquid private equity, its uses, and how it complements traditional private equity.

Breakdown:

[00:00] Introduction to Randy Cohen and Jean-Louis Lelogeais, founders of PEO Partners, and their experience in private equity and distressed debt

[00:30] Randy introduces the concept of liquid private equity, its performance profile, and accessibility benefits

[01:00] Jean-Louis highlights his background at SVP Global and their goal to create a liquid private equity solution

[01:29] Explaining liquid private equity and how it aims to replicate the benefits of private equity in a liquid vehicle

[02:26] Historical private equity performance and its outperformance compared to public markets with less volatility

[04:20] Use cases for liquid private equity as a funding asset for capital calls and an accessible option for retail investors

[06:16] Liquidity challenges for institutional investors and how liquid PE solves them

[08:29] Challenges in achieving buy-in from institutional investors due to AUM requirements and consultant blessings

[11:49] Retail investor access and diversification from traditional 60-40 portfolios with liquid PE

[12:47] The rise of liquid private equity and why the concept is gaining traction

[13:45] BlackRock's acquisition of Preqin and the growing focus on liquid market versions of private equity

[16:07] Liquid PE strategy: mimicking leveraged buyouts through public companies, leveraging data, and hedging to reduce volatility

[18:25] Steps to replicating PE returns: matching industry tilts, choosing LBOable companies, and implementing derivatives for downside protection

[22:39] Challenges and limitations of liquid PE compared to traditional PE, including the inability to perform operational improvements

[27:17] How liquid PE matches average private equity returns while offering lower fees and liquidity advantages

[32:13] Broad sector diversification versus specialized vehicles in liquid PE portfolios

[34:35] Trends in private equity sectors and the dominance of software and services in PE portfolios

[37:01] Researching top quartile funds and leveraging insights for better industry selection

[39:49] The importance of copying PE's strategic sector allocations instead of predicting trends

[41:00] Closing thoughts on liquid private equity and its potential to complement traditional private equity

[43:48] Jean-Louis reflects on founding SVP Global and managing $26 billion in assets

[47:26] Randy shares his experience teaching at Harvard Business School and learning from PE professionals

[49:05] Randy recommends the blog Marginal Revolution for insights on finance, economics, and culture

[50:57] Jean-Louis highlights the entrepreneurial journey in Shoe Dog by Phil Knight and insights into building businesses

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Randy or Jean-Louis, click here.

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

Welcome back to The Private Equity Podcast, by Raw Selection! Today’s guest is Jon Sonnenschein, Private Equity Operating Partner and former SaaS and software CEO. Jon shares insights on driving cultural change in portfolio companies, blending his experience as a CEO and Operating Partner.

Breakdown:

[00:00] Jon Sonnenschein discusses his experience as a Private Equity Operating Partner and former SaaS CEO, focusing on cultural transformation in portfolio companies.

[00:30] From Chicago to Silicon Valley, with 20 years in startups, followed by joining private equity and leading growth at Earth Solutions.

[00:59] The "star player bias" in talent acquisition and the importance of aligning cultural dynamics.

[01:28] Addressing the balance between legacy culture and private equity-driven professionalization.

[03:21] Transitioning from founder-led to private equity-backed and retaining core cultural elements while driving professionalization and growth.

[05:18] Jon shares how he elevated long-term employees for cultural continuity while introducing professional FP&A expertise.

[06:15] Jon explains his approach to understanding a company’s culture by interviewing employees at all levels.

[07:44] The role of listening and valuing employee perspectives in identifying growth opportunities.

[09:11] Validating feedback through patterns, experiments, and data-driven approaches.

[10:57] Testing new markets through structured, accountable experiments to assess viability.

[11:56] Jon’s methods for influencing cultural change without alienating long-term employees.

[13:20] Professionalizing the product organization and using customer feedback to guide decisions.

[15:17] Transparency, one-on-ones, and open forums to drive cultural change and employee engagement.

[18:11] Creating psychological safety and fostering innovation through direct communication.

[19:38] Jon reflects on insights from being an operating partner and how they inform his executive approach.

[21:06] The importance of collaboration between operating partners, deal teams, and CEOs.

[22:28] Recommended readings include Thinking Fast and Slow by Daniel Kahneman and The Hard Thing About Hard Things by Ben Horowitz.

[24:48] Jon emphasizes the importance of tackling culture head-on and shares key takeaways for private equity professionals.

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Jon on LinkedIn here.

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

Welcome back to The Private Equity Podcast, by Raw Selection! Today, we’re joined by Christen Paras, Partner of the Transaction Team at MiddleGround Capital, to explore innovative exit strategies and how MiddleGround is redefining Private Equity practices.

Breakdown:

[00:03] Christen Paras returns to discuss MiddleGround’s unique exit strategy approach.

[00:30] Partner at MiddleGround Capital, based in New York City, leading the transaction team.

[00:59] Private Equity firms often lack adaptability—Christen emphasizes innovation and agility.

[01:26] MiddleGround’s infrastructure, a KPI-driven, collaborative culture for scalable, efficient decision-making.

[03:14] Weekly and quarterly meetings ensure team bandwidth and tackle key challenges.

[04:32] A dedicated team builds repeatable processes for optimal outcomes.

[05:29] Integrating transaction and operations expertise for seamless exits.

[06:55] Ensuring readiness and alignment throughout portfolio lifecycles.

[07:50] Aligning value creation with buyer expectations to maximize appeal.

[10:14] Identifying detractors and enhancing portfolio company readiness.

[13:25] Prioritizing actions that align with exit goals and maximize value.

[15:37] Process mapping and standardization for exit preparation.

[17:03] Metrics-driven timing and customized strategies for individual companies.

[21:16] How exit teams enhance focus and drive superior results.

[24:30] Co-investor and lender insights refine exit strategies.

[25:27] Industry updates, reports, and relationship-driven knowledge.

[26:53] Christen reflects on MiddleGround’s approach and her career journey.

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Christen on LinkedIn here.

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

Welcome back to the Private Equity Podcast by Raw Selection! Joining me today is Brad Armstrong, Partner at Lovell Minnick, a Private Equity firm celebrating its 25th anniversary. Brad shares insights into value creation, forecasting for 2025, the importance of sticking to your core strengths, and how simplicity done right can drive Private Equity success.

Breakdown:

[00:00] Sticking to fundamentals, value creation, and staying disciplined in private equity.

[00:30] Brad's career journey, Lovell Minnick’s 25-year strategy, and their focus on financial services, business services, and fintech.

[01:54] The biggest mistake in private equity: failing to decouple capital raising from capital deployment. Why sticking to your strengths and staying disciplined is key.

[04:40] “Right to win”: Identifying where you have an edge and staying competitive in a mature private equity market.

[06:05] How Brad entered private equity, blending operating, investment banking, and PE experience.

[08:58] Trends in financial services and fintech: digital transformation, technology enablement, and specialized outsourcing driven by regulation.

[11:46] How Lovell Minnick stays consistent: an “all-weather” strategy, controllable outcomes, and avoiding macroeconomic dependency.

[14:09] Lovell Minnick’s approach to value creation: custom plans, operating partners, and functional specialists supporting portfolio growth.

[16:29] Playbooks and best practices: how Lovell Minnick documents and shares successes across portfolio companies.

[17:54] Portfolio collaboration: peer-to-peer teaching, executive summits, and solving challenges together, from cybersecurity to sales infrastructure.

[22:08] Forecast for 2025: Brad’s take on market clarity, improving fundraising, and a constructive deal-making environment.

[25:53] Brad’s influences: books like Six Types of Working Genius, Scary Smart (AI), and Outlive by Peter Attia.

[27:46] Closing thoughts and gratitude to the audience for record-breaking downloads.

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Brad on LinkedIn here.

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

Welcome to The Private Equity Podcast, hosted by Alex Rawlings. Today’s guest is Seth Auld, VP of Portfolio Management and Deal Origination at Kompass Kapital. Seth shares his insights on building LP relationships, raising capital effectively, and the importance of sector specialization.

Breakdown;

[00:00] Introduction to Seth Auld and the episode’s focus on LP relationships and capital raising.

[00:29] Seth’s journey from running a family business to private equity, including roles in banking, consulting, and Fortune 500 agribusiness.

[03:14] Key mistake: Firms lack focus and fail to define a niche. Seth emphasizes sector specialization, strong operating partners, and avoiding transactional relationships.

[05:36] Seth’s approach to relationships: Be genuinely curious, ask questions, and build trust. He recommends How to Win Friends and Influence People.

[08:45] Importance of narrowing a niche and involving full-time, deeply engaged operating partners with relevant experience for target company size.

[11:09] What appeals to LPs: Strong track record, operating partner alignment, and financial commitment to the fund.

[13:58] Better LP engagement: Build relationships during the current fund, offer co-investment opportunities, and avoid transactional outreach.

[14:58] The challenge of direct outreach to family offices and the value of referrals, conferences, and relationship-building over cold solicitations.

[17:21] Closing the right deal: Avoid deal fatigue, revisit your original thesis, and maintain discipline. A broad deal pipeline ensures better options.

[20:38] Seth’s influences: Wall Street Journal, FRED economic data, trade magazines, and AI developments.

[21:07] Connect with Seth on LinkedIn for further insights.

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Seth on LinkedIn here.

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

Welcome back to The Private Equity Podcast by Raw Selection, hosted by Alex Rawlings. Today’s guest is Richard Neff, a proven operator and operating partner with decades of experience in private equity and a 25-year career at GE Capital and GE Healthcare. In this episode, Richard shares insights into the investor-operator relationship, the importance of infrastructure, and lessons learned from GE’s legendary playbook for growth and transformation.

Breakdown;

[00:00] Reflecting on 2024 and looking ahead to 2025.

[00:28] Introduction to Richard Neff: His background in healthcare, tech-enabled services, industrial services, and 25 years at GE.

[00:57] One common private equity mistake: Over-ambitious plans versus focused execution.

[02:17] What typically moves the needle in $20M revenue businesses: Human capital and growth initiatives.

[03:38] Key areas private equity firms can better align with portfolio executives.

[04:36] The gap between evaluators (investors) and doers (operators): Surprises post-acquisition.

[06:29] The infrastructure gaps often missed: Sales team depth, product development, and capability issues.

[07:53] Why infrastructure and capability investment is underestimated and often delayed.

[09:21] Richard’s experience at GE Capital: A private equity-style approach to business building.

[10:49] How GE executed a structured playbook for M&A, growth, and cultural integration.

[11:45] Lessons from managing hyper-growth businesses pre- and post-financial crisis.

[12:44] Richard’s key takeaways from GE:

• The value of a structured 100-day plan.
• Building global networks and talent development.
• Creating a sense of belonging and shared purpose.

[14:36] Applying GE’s lessons to smaller portfolio companies: Building camaraderie and engagement.

[15:35] The power of networking within private equity portfolio companies.

[16:58] Why private equity firms often miss the value of connecting their C-suite leaders.

[18:26] Richard’s influences: His diverse reading list including Fast Company, Wired, and Financial Times.

[19:47] Encouraging problem-solving and situational adaptability through varied experiences.

[20:13] How to contact Richard Neff.

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Richard on LinkedIn here.

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

Welcome to The Private Equity Podcast by Raw Selection, hosted by Alex Rawlings. Today’s guest is Jon Van Tuin, Managing Director at P4G Capital. With decades of experience in Private Equity, Jon shares his insights on deal origination, building relationships with deal sources, and standing out in an increasingly competitive market. Learn actionable strategies to improve deal flow, develop meaningful relationships, and elevate your firm's positioning as the preferred acquirer.

Breakdown:

[00:00] The current private equity landscape with over 3,500 funds and $1 trillion in undeployed assets.

[00:28] Introduction to Jon Van Tuin and his role at P4G Capital.

[00:57] Jon’s background: 30+ years in private equity starting in the late 1980s.

[01:27] A common mistake private equity firms make: Addressing portfolio issues too slowly.

[02:27] The importance of acting quickly and getting the right people into key roles.

[03:25] Jon’s career reflections and the growth of private equity since the 1980s.

[05:23] Jon’s approach to deal origination: Focusing on relationships, not transactions.

[06:21] Why 80% of P4G’s deals come from a select group of intermediaries.

[07:43] Adding value to intermediaries: Sharing insights instead of just asking for deal flow.

[08:42] The value of a dedicated deal origination professional in private equity.

[09:40] How origination teams keep pipelines full and differentiate firms in a crowded market.

[10:39] Positioning P4G as a preferred acquirer: Building relationships and delivering on process.

[11:07] Jon’s multi-pronged approach: Over 700 face-to-face meetings and consistent outreach.

[12:57] Staying top of mind: Leveraging tools like DealCloud for digital outreach.

[13:25] The demands of travel: 43 weeks on the road to drive deal origination success.

[14:22] Jon’s influences: Focusing on leadership, culture, and aligning the right teams for success.

[16:16] Recommended reading: Insights from McKinsey, Bain, Stephen Covey, and Jim Collins.

[17:14] How to contact Jon Van Tuin: Email: jvantuin@p4gcap.com

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

You can connect with Jon Van Tuin on LinkedIn here.

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