Kyle Johnson, Author at BluWave

BluWave’s exponential growth accelerates as they surpass 500 private equity firm clients

September 9, 2021 Kyle Johnson

Nashville, TN (September 9, 2021) – Following its recent Inc. 5000 fastest growing companies listing, private equity industry solutions provider BluWave has announced another company milestone: surpassing the 500-client mark. Fueled by an Intelligent Network of over 3,000 advisors, interim executives, and specialized groups with expertise in value creation and due diligence, BluWave currently serves some of the top PE funds and their portfolio companies in the U.S. and abroad.

Founded by Sean Mooney in 2016, BluWave’s PE-focused solutions are rooted in nearly 20 years of his private equity experience, where he continually faced challenges associated with quickly sourcing the exact-fit, third-party, expert resources he needed. In the past two years, with the disruption of the pandemic followed by the “great resignation”, funds and companies are facing new challenges including dealing with scarcity across all areas coupled with increased risk when resources aren’t deployed effectively and efficiently.

“We’ve certainly seen an increase in demand since the beginning of 2020, and my original premise for BluWave has hit an important inflection point,” says Mooney. “At the root of all this growth is a radical commitment to people—knowing how to solve problems via human ingenuity combined with data and our deep understanding of client needs. More than anything, this milestone is a reflection of the entire PE industry, where it wants to go, and how it’s ultimately going to transform ‘business as usual.’”

Adds Katie Marchetti, BluWave Managing Director: “Our mission is to ‘drive alpha with ease’ by connecting our clients with PE-grade resources exactly when they need them, reducing the time-consuming task of identifying and vetting specialized talent. It’s clear that this type of demand is increasing, and we are poised to continue delivering solutions to even more PE funds as we move into 2022.”

For PE funds and portfolio companies looking for value creation and due diligence resources, BluWave provides solutions across every major industry in IT, HR, operations, sales, marketing, and more. To learn more about how they partner with private equity firms, visit bluwave.net/solutions.

About BluWave

BluWave is a private equity-focused Intelligent Network that leverages technology, proprietary data, and human ingenuity to connect private equity funds and proactively managed companies with best-in-class, PE-grade third-party resources for more efficient and effective due diligence and value creation activities. Visit www.bluwave.net for more information.

You can view the official press release here.

How we did it: Critical VoC Provider

September 2, 2021 Kyle Johnson

An investment principal at a PE fund came to us with a critical need for Voice of Customer research on a target they had an LOI on in the staffing and recruiting industry. Expecting to get full exclusivity on the target in the next two weeks, they were urgently seeking someone who would quickly be able to perform primary and secondary research on the staffing industry in order to gauge its scope, size, and key players. They were specifically looking for a firm that could go to staffing firms and potential new clients to gather the research, and then synthesize it into usable insights. We quickly worked to understand the key criteria of their need and then leveraged our data and human ingenuity to match them with two select pre-vetted VoC providers. The client selected their ideal choice and were able to gain the customer insights they needed without wasting time or cost.

Read the full case study.

Have a VoC, other diligence, or even value creation need we can help with? Contact us here and our team will begin helping you within 24 hours.

How we did it: Immediate strategy session facilitator

August 23, 2021 Kyle Johnson

A PE fund principal came to us with an immediate need for a strategy session facilitator for their software portfolio company. Having recently acquired the business, the fund wanted to quickly get the portco into strategy sessions so that they could start defining long-term goals. Needing structure for these sessions, they were looking for a facilitator that was a former executive or management consultant and had software industry experience. They immediately needed someone to remotely lead the session and help the portco form and prioritize goals. We promptly worked to understand the nuances of their need and then leveraged our data and human ingenuity to match them with two select strategy session facilitators. The client selected their ideal choice and was so pleased that they have continued to use this resource across their entire portfolio.

Read the full case study.

Have a strategy need we can help with? Contact us here.

How we did it: LMM VP with critical need for ERP selection advisor

August 23, 2021 Kyle Johnson

A PE fund came to us with a critical need for an ERP selection consultant for their portco in the manufacturing industry. Since acquiring the portco, they knew that the company’s older ERP system would need to be replaced. Knowing that the selection and implementation would be a lengthy process, they were urgently seeking a consultant with experience in the manufacturing industry at the same scale as the portco that could guide them through what needed to be evaluated before making a selection and then manage the entire process. After quickly understanding the key needs of our client, we were able to match them to a curated couple of ERP selection consultants in our network within 24 hours. Selecting their ideal choice, the client was able to quickly and confidently kick off their ERP selection process.

Read the full case study here. Have a similar need that you would like to connect with us on? Contact us here and a team member will be happy to begin helping you within 24 hours.

A Record-Breaking Year for PE: Pitchbook’s Q2 Report

August 18, 2021 Kyle Johnson

With PE funds fighting an uphill battle last year amid a global pandemic, Q2 2020 industry reports were shrouded in uncertainty. Across the globe, organizations fought against a looming economic collapse as businesses folded and life as we knew it shut down for months.

Despite the shifting tides, we witnessed first-hand the resilient nature of the private equity industry. Around this time last year, we published our analysis of the National Bureau of Economic Research’s study on PE and financial fragility that found that PE-backed companies were more resilient and rebounded more quickly than their non-PE-backed peers during the crisis.

One year later, we’re seeing that the study held up…and then some. In the last 18 months, the PE industry has shown tremendous growth despite an ever-changing economic environment. In PitchBook’s Q2 2021 US PE Breakdown, it was reported that middle market and billion-dollar deals are reaching unprecedented levels “thanks to the speedy economic recovery, demand for high-yield debt, an abundance of dry powder, and the looming threat of a capital gains tax hike.”

The report outlined how surging LP activity has brought not only the PE industry but also those it supports from harrowing lows to meteoric highs in just a few months. Here are some key highlights from Pitchbook’s Q2 findings:

Overall Market Trends: A Record-Breaking Year

PE firms have closed on 3,708 deals worth $456.6 billion in H1, which is about two-thirds of the total deal value for 2020. H1 2021 is also on track for a record-setting year in PE exit deals.
The Q2 inflation pop is signaling a move toward a potential rate increase by the end of 2023. The core consumer price index increased by 3.8%.
The White House’s proposed increase from 20% to 39.6% in the marginal capital gains rate has “spurred a dealmaking frenzy.” Pitchbook is seeing business owners race to realize profits from sales before the end of the year.

Areas of Growth: The Driving Factors

Funds worth $5 billion or more (“mega-funds”) accounted for the bulk of capital raised, “but both middle-market managers and first-time funds are also finding success as the increased appetite for PE benefited funds of all sizes.”
Corporate bonds and private debt also accrued significant activity in Q2.
Investment in cybersecurity is on the rise. PE dealmaking in software continued to post was strong in Q2 2021 and cybersecurity emerged as a particular area of focus. This makes sense, as the pandemic also engendered an increase in remote-work-related cybercrime.
Distributions to LPs and high returns numbers across all fund sizes are set “to provide additional tailwinds” moving forward. Also, platforms that saw significant expansion under PE sponsors are now coming to market and achieving healthy valuation step-ups.

As our economic recovery continues, many PE firms and PE-backed companies can start to look past pandemic-related issues and get back to their missions: building and scaling stronger businesses. Having the hard data to demonstrate the powerful buoyancy of private equity, we can move forward confident that it’ll take more than a sudden recession to curb this industry.

To read the full Q2 report, visit Pitchbook’s site here.

Interested in gaining more detailed Q2 insights? Check out our Q2 report here.

BluWave Ranks No. 127 on the 2021 Inc 5000 Annual List of America’s Fastest-Growing Private Companies

August 17, 2021 Kyle Johnson

Top Resource for Private Equity Firms Achieved Three-Year Revenue Growth of 3,157 Percent

BRENTWOOD, TENN., – August 17, 2021 – BluWave, LP, a top resource for private equity firms and their portfolio companies, announces today the company is No. 127 on the annual Inc. 5000 list, the most prestigious ranking of the nation’s fastest-growing private companies. BluWave’s ranking reflects the company’s achievement of a three-year revenue growth rate of 3,157 percent. Presented by Inc. magazine, the Inc. 5000 is a unique look at the most successful companies within the American economy’s most dynamic segment—its independent high-growth businesses. BluWave is on the Inc. 500 and featured in Inc.’s September issue representing the top tier of the Inc. 5000.

Through its invitation-only Intelligent Network, BluWave uses proprietary technology, data, and human ingenuity to expertly connect the world’s leading private equity funds, their portfolio companies, and proactive independent businesses with the best-in-class, PE-grade boutique advisors, independent consultants, and interim executives for their value-creation and due diligence initiatives. BluWave serves more than 500 of the world’s top private equity firms, connecting them with specialized third-party resources in finance, human resources, technology, operations, and market strategy among other functional areas.

“We are honored to be recognized by Inc. magazine and rank among America’s fastest-growing companies,” says Sean Mooney, founder and CEO, BluWave. “We solve one of the biggest problems in the private equity industry and business in general—connecting the world’s most proactive business leaders with perfect-fit third parties for integral due diligence and value creation initiatives at the exact time they are needed—and the market response has been tremendous. Our focus on surpassing exceedingly high standards and delivering differential value fuels our growth.”

Not only have the companies on the 2021 Inc. 5000 been very competitive within their markets, but this year’s list also proved especially resilient and flexible given 2020’s unprecedented challenges. Among the 5,000, the median three-year growth rate soared to 543 percent. Together, those companies added more than 610,000 jobs over the past three years.

About BluWave, LP

Founded in 2016, BluWave is an innovative market network powered by technology, data, and human ingenuity. Our solution uniquely connects private equity firms, the leadership teams of their portfolio companies, and proactively managed independent companies with exceptional, pre-vetted third parties that can differentially help customers surpass critical business goals. Our invitation-only Intelligent Network represents more than 100 categories and we have connected more than 500 private equity firms with best-in-class resources to help them confidently assess opportunities and build value with speed and certainty. For more information about BluWave, visit our website at www.BluWave.net.

More about Inc., and the Inc. 5000

Methodology

Companies on the 2021 Inc. 5000 are ranked according to percentage revenue growth from 2017 to 2020. To qualify, companies must have been founded and generating revenue by March 31, 2017. They must be U.S.-based, privately held, for-profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2020. (Since then, some on the list may have gone public or been acquired.) The minimum revenue required for 2017 is $100,000; the minimum for 2020 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons. Growth rates used to determine company rankings were calculated to three decimal places. There was one tie on this year’s Inc. 5000. Companies on the Inc. 500 are featured in Inc.’s September issue. They represent the top tier of the Inc. 5000, which can be found at http://www.inc.com/inc5000.

About Inc. Media

The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including web sites, newsletters, social media, podcasts, and print. Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers, and the credibility that helps them drive sales and recruit talent. The associated Inc. 5000 Vision Conference is part of a highly acclaimed portfolio of bespoke events produced by Inc. For more information, visit www.inc.com. For more information on the Inc. 5000 Vision Conference, visit http://conference.inc.com/.

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Media Contact:

Julie Lilliston

Julie Lilliston Communications LLC

615-663-2121

julie@julielilliston.com

July 2021 Roundup: BluWave Client Insights

August 4, 2021 Kyle Johnson

BluWave works with over 500 PE funds from around the globe, connecting them with pre-vetted, best-in-class, interim executives and small groups across a variety of resource and functional areas. From information technology and manufacturing to healthcare and consumer goods, our clients are paving the way for “Industry 4.0.” In other words, they have their heads in the game and their hands on the pulse of news you can use.

Check out the latest, curated collection of reports, insights, and musings from a handful of our PE funds.

Parker Gale recently launched a three-part series on boards on its Private Equity Funcast. In the latest episode, the team talked to Jason Heltzer, Managing Partner at Origin Ventures and a professor at The University of Chicago Booth Business School, about what makes a good board member — as well as the behaviors to look out for and avoid.

Sun Capital Co-founder and Co-CEO Marc Leder was recently featured on The Deal’s Behind the Buyouts Podcast. In this episode, Leder speaks about how Sun Capital has invested more than $13 billion since its founding in 1995, and how he’s navigated the past quarter-century of dealmaking. You’ll also hear about the firm’s deals in “healthcare, bedding, and its increased focus on technology companies, as well as the efforts of private equity firms to build up companies to create value.”

One year ago in July, TCV published this Q&A with Peloton Co-Founder and CEO John Foley and TCV GP Jay Hoag. As a throwback, we’re revisiting this interesting conversation in which Foley discusses how the fitness industry was “ripe for disruption,” why early investors were hesitant about Peloton’s approach, why culture and social responsibility are increasingly important to business success, and how to navigate the road to the IPO.

While “the theory on minimizing a firm’s cost of capital is straightforward enough,” Heartwood Partners argues that it has not been the best way to create equity value in a sustainable fashion. This model is reliant on the business succeeding and growing, which may not always be the reality. In this piece, Heartwood makes the case for why debt leverage is not “all it’s cracked up to be.”

You can also find last month’s roundup here.

How we did it: Immediate CDD advisor with software experience to assess potential target for PE VP

July 27, 2021 Kyle Johnson

A PE fund vice president came to us with a critical need for a commercial due diligence provider that could complete a proactive market study for an asset that they expected to come to market in the next month. With their go-to providers at capacity, no access to the company’s information, and a desire to understand the major players in the IT management software market before the target went to market, the fund was in critical need of an available provider that could perform a full market study in the next week. We promptly worked to understand the client’s exact market study needs and were then able to introduce them to two exact-fit commercial due diligence providers within 24 hours. The client selected their ideal choice that had specific experience in proactively assessing industry attractiveness and was able to quickly gain the market knowledge they needed to confidently assess whether or not the potential target was something they wanted to continue pursuing.

Do you have a similar need or any other specific need we can help you with? Contact us here and we will be happy to help you.

Read the full case study here.

PE Human Capital Event Recap

July 20, 2021 Kyle Johnson

Every quarter we bring together top PE HR and talent executives to discuss current industry topics and to offer leaders in PE Human Capital the chance to gather, share intel, and decompress with one another. In our most recent event, we discussed many topics and listed our top takeaways below.

These forums are invite-only and follow Chatham House Rules, so listed below are high-level takeaways only. Are you in private equity and interested in joining fellow leading PE professionals during our next Human Capital Forum? Please contact us at events@bluwave.net.

Hiring Portco Execs  

Hiring the “perfect fit” executive for portcos is taking much longer, and many search firms and recruiters are tapped out.  Firms are getting more proactive—even engaging specialist recruiters before the deal closes. 
Many shared tips including focusing on the journey of a candidate—ensuring every interaction involves selling the value of your company and assessing the skill set of the candidate.  And when they find the right person, they are moving quickly.

Attracting and retaining internal PE talent 

To find people (particularly at the senior associate and VP levels), funds are considering hiring off-cycle and considering non-traditional (non-banking) backgrounds, and committing to onboarding and training. Firms are offering mentorship opportunities with VPs or MDs and regular check-ins—proactively soliciting feedback from junior team members to unearth previously un-voiced concerns and providing them a “safe place” in which to do it.
Many are leaning into the culture within the firm.  Branding has become even more important for both fundraising and attracting talent. 
Some firms are leaning into further defining career paths for juniors versus the historical opacity.  Junior talent will get poached if you are not clearly communicating how they stand within the fund.

Lessons learned from hybrid and remote arrangements

Hybrid flexibility varies by firm—some are full-time in-person, some are requiring in-person on certain days, others offering full hybrid with the expectation of in-person during a prescribed number of times per month.  Flexibility is the current perk du jour.  Try the best model for your office, and regularly reflect on whether it is working. It is ok to revisit your model and make changes if needed.

We appreciated this latest session bringing together leaders in PE Human Capital, enabling peer-to-peer discussions on current industry hot topics. During our last quarter, Human Capital projects comprised 40% of our overall project mix, so we are well equipped and ready to help you with those needs.

Interested in learning about how we can help you instantly access PE-grade specialized recruiters, organizational effectiveness advisors, compensation study providers, interim talent, and other custom fit human capital resources you may need? Check out our case studies here. If you have an immediate need, contact us here and one of our team members will be in touch shortly, we’ll be happy to help.

Video: Q2 Insights Overview

July 16, 2021 Kyle Johnson

Every quarter our team analyzes the projects we work on with our 500+ PE fund clients to get a bird’s eye view of the market. In this video, our leadership team shares the trends we are seeing across due diligence and value creation. Watch the video below to learn more.

If you would like to get a copy of the report, reach out directly to your BluWave contact or our team at insights@bluewave.net and we’ll be happy to assist.

June 2021 Roundup: BluWave Private Equity Client Insights

July 7, 2021 Kyle Johnson

Check out the latest, curated collection of reports, insights, and musings from a handful of our PE funds.

Baird Capital’s venture team partner, Benedict Rocchio, was tapped for a Crain’s Chicago Business roundtable on the future of work. In this recap, he shares his thoughts on “solutions, strategies, and resources shaping the future of work and what business leaders should anticipate for their organizations.”

To realize the benefits of an add-on acquisition, the acquiring business and the acquired company need to integrate. Simply put, “Integration is the work to make the whole greater than the sum of its parts.” In this post, Heartwood lays out the four key priorities of their integration playbook: strategic alignment, communication, collaborative planning, and integration competency.

How we did it: Pricing strategy expert needed to drive demand for consumer products portco

June 30, 2021 Kyle Johnson

A PE firm came to us with a critical need for a pricing strategy expert to maximize revenue at one of their consumer products portfolio companies. Since competing against big-box retailers, the portco realized their need to set pricing that clearly conveyed the value of their offerings to their price-conscious and value-driven consumers. We quickly worked to understand the client’s nuanced needs, leading us to promptly introduce them to two PE-grade pricing strategy experts with extensive experience in the consumer products industry. The client selected their ideal choice, and the PE fund was able to achieve its objective of maximizing response rates and demand through strategic pricing and an aggressive seasonal promotional schedule.

Do you have a similar need or any other specific need we can help you with? Contact us here and we will be happy to help you.

Read the full story here.