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