Customer Type: PE Firms

September 2022 Roundup: BluWave Client Insights

October 4, 2022 Brad Gerick

BluWave works with over 500 PE firms from around the globe as well as their portfolio companies and proactive independent companies, connecting them with BluWave-vetted, best-in-class, third-party service providers across a variety of resource and functional areas. From information technology and manufacturing to healthcare, consumer goods, and beyond, our clients are expert business builders. In other words, they have their heads in the game and their hands on the pulse of news and insights you can use.

Check out the latest, curated collection of our client’s musings on employee-based ownership, developing ICPs, creating an employer brand, and more. 

KKR: Employee Ownership

Seeing success after implementing broad-based employee ownership programs in several portfolio companies, Pete Stavros, Co-Head of Americas Private Equity at KKR, shares his insights on the benefits of employee ownership.

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ParkerGale: Developing ICPs

ParkerGale operating partners Cici Zhang and Paul Stansik speak on the importance of defining an Ideal Customer Profile (ICP) and discuss their steps to building out an ICP.

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Insight Partners: Building an Employer Brand

With an increasing emphasis on talent and a push towards putting employees first, it is critical for employers to proactively work to attract and retain top talent. Insight Partner’s Talent COE, Hattie Young, identifies a 4-step process for building a compelling employer brand to attract the best talent.

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Montage Partners: Questions Sellers Should Ask

The diligence process should be a two-way street. Montage Partners highlights diligence on the sell side and provides questions sellers should be asking potential buyers.

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Blackstone: Dealing with a Tough Market

With recession risks in the US and global economy, Joe Zidle of Blackstone gives his insights to dealing with a tough market, speaking to inflation, a strengthening labor market, and shifting consumer demand.

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Read what some of our clients had to say last month on value creation through human capital, continued recessionary pressures, DEI, digital marketing, and more.

Technology diligence critical for target company

Partner needs technology diligence for software target 

A PE firm partner came to us with a critical need for a technology diligence group that could assess a target software company. Hoping to close on the target company soon, the partner needed to evaluate the quality of the code, the transportability of the software, and the scalability of the software. They urgently needed a PE-grade technology diligence provider who could assess the company’s current software and advise a best practice plan for how the firm should move forward with the target.

BluWave has select providers that match exacting needs 

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade technology diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of providers that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted providers from our invitation-only Intelligent Network that fit their exacting needs.

PE firm engaged their ideal provider to move forward with diligence efforts 

Within 24 hours of the initial scoping call, the PE firm was introduced to two PE-grade tech diligence providers that specialized in the software industry. The client selected their ideal provider, and the PE firm was able to confidently evaluate the company’s software and its ability to scale. The technology diligence group not only evaluated the current software but was also equipped to provide the firm with recommendations for how to move forward.

Cost reduction group hired to analyze legacy supply contracts

Cost reduction group needed to immediately cut costs

A private equity firm acquired a leading plastics company that designed and manufactured innovative plastic-injection-molded products. The firm believed there was room for improvement and cost reductions in the company’s supply contracts. Still, it lacked certainty given the nature of the portfolio company’s products and its specific resin grades. The firm asked us to connect it with a best-in-class cost-reduction group with deep expertise in this particular need.

We quickly met with the client to understand their specific needs

We first interviewed the PE firm to understand the nuances of its needs and the unique challenges involved with post-transaction efforts to reduce costs. Then we quickly matched these criteria to the pre-vetted candidates from our invitation-only network, rooted in our founder’s 20 years of PE industry experience. Based on our proprietary approach, the PE firm hired a group of resources with the exact plastics market experience they needed, as well as key relationships with manufacturers.

Cost reduction group saved our client more than $10m

The vetted group identified more than $10 million in annual savings and created more than $80 million of pro forma enterprise value.

Interim CHRO Urgently Needed for Software Portco

Firm needs top interim CHRO for fast growing portco 

A managing director came to us with a critical need for an interim CHRO for their software portfolio company. Having recently experienced meaningful growth through M&A, the portfolio company urgently needed a top interim CHRO to act as a strategic HR partner to the CEO and Board during the integrations. The managing director was looking to match the portfolio company with an interim CHRO who could drive cultural alignment, improve organizational design, support M&A integration, and engage a deeper pool of talent, among other things. They quickly needed a specific hire, with PE experience, industry knowledge, and M&A background. 

BluWave identifies three pre-vetted interim CHROs with industry related background 

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade Interim CHRO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of interim CHROs that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted interim executives from our invitation-only Intelligent Network that fit their exacting needs. 

Portco engage exact-fit CHRO for interim position

Quickly after the initial scoping call, the PE firm and portfolio company were introduced to three PE-grade interim CHROs that specialized in M&A in the software industry. The client selected their ideal choice and was able to confidently move forward with a strategic thought partner to lead HR in the fast-growing portco. The company ultimately ended up hiring the interim CHRO for the full-time role.  

Women in PE Forum Recap | September 2022

September 28, 2022 Delaney Walker

Every quarter we gather leading women in PE to discuss current industry topics and to offer intelligent women the chance to gather, share information, and decompress with one another. In our most recent event, we gathered to discuss the current slower deal flow when compared to last year and challenges/opportunities in the face of recession.

These forums are exclusively for women at private equity firms and follow Chatham House Rules, so listed below are high-level takeaways only. If you are a woman in private equity and interested in joining fellow leading female PE professionals during our next Women in PE Forum, RSVP here.

Deal flow 

  • After a historic 2021, deal flow is down across most industries. The summer months returned to a “normal” deal flow cycle, with fewer deals coming to market between Memorial Day and Labor Day. 
  • There are still a considerable number of teasers, but the deals are not closing. Many seller expectations have not realigned to the market and are still expecting 2021 multiples. 
  • The quality of deals coming to market is a mixed bag. 
  • Looking forward, PE firms expect the rest of 2022 and early 2023 to remain slower. 

Challenges and opportunities in the face of recession 

We thoroughly enjoyed getting to gather with women in PE to discuss these current topics. We’d be happy to connect you to the PE-grade, exact-fit, third-party resources you need to assist you in this pressurized market, just contact us here.

Interim CHRO Urgently Needed for Professional Services Portco

Interim CHRO needed for high growth, professional services portco 

A PE firm managing director came to us with a critical need for an interim CHRO for their professional services platform. Combining three companies to make the platform, the firm urgently needed a PE-grade interim head of HR to deal with contracts, advise future state systems, reconfigure benefits plans, help them migrate off their PEO and stand up their own HR function, and more. Closing on the platform in the upcoming week, the managing director quickly needed to fill this role with an interim who had industry expertise, previous experience with M&A and PE-backed middle market companies, as well as the ability to execute the needed tasks at a high level.

BluWave uses pre-vetted network to find top CHRO options

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim CHRO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of interim executives that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted CHRO from our invitation-only Intelligent Network that fit their exacting needs.

Firm engages chosen interim CHRO to drive success in portco

Within less than 24 hours of the initial scoping call, the PE firm was introduced to three PE-grade interim CHROs that specialized in M&A and the professional services industry. The client selected their ideal choice. Thanks to BluWave, the PE firm was able to quickly & confidently appoint a top interim CHRO to handle the transitions involved in the platform close as well as lead the HR strategies moving forward.

Hunt Scanlon PE Conference Event Recap

September 27, 2022 Delaney Walker

Our team had the chance to attend and sponsor the Hunt Scanlon September 2022 PE Conference in San Francisco – Driving Growth & Value Through Effective Leadership. Along with listening to thought leaders share their insights on a variety of panels, our Founder & CEO, Sean Mooney, also had the chance to sit on a panel hosted by Jennifer Perry of FMG Leading. The panel covered the topic of identifying and developing non-c-suite roles that have an outsized impact on value creation and included fellow thought leaders Raj Karanam of Sun Capital Partners, Kate Berkeley of Gryphon Investors, Darcy Casarella of New Enterprise Associates, Kevin Kernan of JM Search, and Valerie Frederickson of Frederickson Partners.

It was great to gather with so many thought leaders in the private equity human capital space at the Hunt Scanlon event. Here are some of the key takeaways we gleaned from Sean’s panel & the others:

  • Human capital continues to be a growing priority in private equity. A common theme from fellow attendees was recognition that talent-focused conversations weren’t prominent in PE as recent as 2 years ago, and many human capital leaders are either new to private equity, or to the human capital function. This was a topic we also discussed at our August 2022 PE Human Capital Forum (RSVP for our upcoming human capital event here).
  • A strong human capital function has 3 key components: people, processes, & technology.
    • People: Firms are taking a more proactive approach in getting the right people in place internally to assess and facilitate talent decisions.
    • Processes: Human capital leaders are ensuring they have effective processes in place for building/managing networks, talent pipelines, and interview processes.
    • Technology: In order to support their people and their processes, firms are leveraging technology to help them.
  • Talent to value is more important than ever. While getting the C-suite right remains the top & most critical priority, understanding what talent below the C-suite generates outsized value to their role, and then getting that talent right, is of growing importance in turbulent economic times. Identifying & assessing these roles is helpful immediately post-investment and if right sizing needs to occur.
  • Talent is becoming increasingly integrated with value creation plans. Leading firms are incorporating talent strategy into value creation plans from the get-go to ensure there is alignment.

Human capital continues to be the largest functional area in the BluWave Activity Index. We support clients with their human capital needs through everything from connecting them with pre-close recruiters, interim CFOs, & more. Let us connect you to the exact-fit human capital resources you need – start your project.

Pre-close recruiters immediately needed

PE firm has critical need for pre-close recruiters for a target company

An investment executive at a large cap PE firm came to us with a critical need to source trainers and university recruiters for a target company in the engineering industry. Prior to closing on the target company, the PE firm wanted to explore the available selection of talent they would have if the deal closed, and they chose to expand the UK-based company into the USA market. The investment executive urgently needed a PE-grade pre-close recruiter who could source the trainer and university recruiter candidates – both of which required a unique skill set and background.

BluWave has in-network, PE-grade recruiters with industry experience

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade pre-close recruiter needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of non-executive recruiters that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria. Then we connected the client with the select pre-vetted recruiters from our invitation-only Business Builder’s Network that fit their exacting needs.

The firm was equipped with the proper talent sources to proceed with their deal

Within less than 24 hours of the initial scoping call, the PE firm was introduced to a PE-grade non-executive recruiter that specialized in sourcing trainers and university recruiters for engineering technology roles. The client selected the presented provider and was able to confidently and quickly move forward in their diligence process, equipped with the necessary insight on the available talent they would need to drive value post-close.

GTM strategist vitally needed to accelerate growth

PE firm needs GTM strategist to grow financial services portfolio company

A managing director came to us with a critical need for a growth strategy consultant for their financial services company. After several years of holding the company and experiencing annual organic growth, the PE firm was looking to accelerate growth within the portfolio company by reevaluating their GTM strategy. With a desire to grow the top line, the managing director had a crucial need for a GTM strategist who could help drive revenue through the improvement of the sales process and close rate while leading the analysis of overall go-to-market and growth options.

BluWave identifies PE-grade GTM growth strategists within pre-vetted network

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade GTM & growth strategy needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of growth strategy consultants that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted independent consultants from our invitation-only Intelligent Network that fit their exacting needs.

Firm is provided with an ideal growth strategy consultant for their portfolio company

Within less than 24 hours of the initial scoping call, the PE firm and portfolio company were introduced to a select few PE-grade GTM strategy consultants that specialized in evaluating growth in the financial services sector. The client selected their ideal choice, and the PE firm was able to confidently drive an excellent outcome without wasting or cost. With the strategy consultant’s guidance, the portfolio company was able to implement an organic strategy to increase revenue and grow the company.

Operating Partners’ Forum Recap | September 2022

September 19, 2022 Delaney Walker

Every quarter we gather Operating Executives in PE to discuss current industry topics and to offer peers the chance to gather, share information, and decompress with one another. In our most recent event, we gathered to discuss challenges and opportunities in the face of a recession.

These forums are for PE Operating Executives only and follow Chatham House Rules, so listed below are high-level takeaways only. If you are an operating executive in private equity and interested in joining fellow Operating Executives during our next Operating Partners’ Forum, RSVP here.

Acceleration is crucial during the current state of the economy:

  • Senses are heightened as a result of the current business world dynamics and past markets.
  • A number of the activities that would traditionally start during the post-investment closing period, now initiate before an investment is closed. For example, human capital searches are being brought into diligence and board of advisors are being formed pre-close.
  • PE firms are quickly looking to build strong platforms where they can do complimentary add-on acquisitions at lower valuations. BluWave has seen this ring true through the increased need for buyside M&A advisors and merger integration advisors.

Agility & data analytics:

  • An increasing focus on data and analytics allows PE firms to be extremely agile and change with the times.
  • A big piece of ensuring agility is a result of implementing data & analytics is making sure that the data is placed in the right hands, one of which is portco CFOs.
  • Many PE firms are still at the early stages of deploying advanced analytics and are looking to first build proof points at a smaller number of portcos. BluWave is therefore receiving growing demand for 3rd party data analytics advisors that can help expertly and effectively build out these early efforts.

We thoroughly enjoyed getting to gather with PE Operating Executives to discuss these current topics. We’d be happy to connect you to the PE-grade, exact-fit, third-party resources you need to assist you in this pressurized market, just contact us here.

Learn more about how we can specifically help Op Execs here.