PE Firms Archives - Page 30 of 45

Big Data Analytics Consultant Critically Needed

Urgent data analysis needed to evaluate portfolio company

A LMM VP came to us with an urgent big data analytics need for a technology-focused portfolio company that they were evaluating. The PE firm recently retained access to some of the target’s transactional data sets and the size of them was overwhelming. They needed an expert with a strong analytics and B2B background that could take the data and create cohort analyses from it. With LOIs due in one week, they urgently needed a consultant that they could connect with pre-LOI so the consultant could then hit the ground running post-LOI.

BluWave has pre-vetted analytics consultant specialized in diligence

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade big data and analytics needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of analytics 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 specialized consultant from our invitation-only Business Builders’ Network that fit their exacting needs.

Firm engages exact-fit data analytics consultant to immediately start project

Within the same day of the request, the PE firm was introduced to an exact-fit provider that specializes in analytics consulting during diligence. The client was engaged and was able to start the project immediately post-LOI. The provider was able to dedicate their resources to create a systematic method of creating meaningful analyses from the data sets and ultimately provide the client with the exact insight they needed.

Q2 2022 BluWave Insights

July 20, 2022 Delaney Walker

Every quarter our team analyzes the projects we work on with our 500+ PE firm clients to get a birdseye view of the market. You can request your copy here to view all of the trends that we have seen over the past quarter.

Key findings from Q2 include value creation remaining strong due to the record number of deals made at robust valuation multiples during 2021, inflation continuing to wreak havoc on global economies, and the recessionary pressures availing substantial opportunities for all of the best business builders.

Learn more about the insights we gleaned from the report by watching the video below.

To request the full the report, click here.

Video transcript:

BluWave has a unique vantage in the North American economy. While working with more than 500 of the world’s top business builders, we’re able to understand unique insights into how and why the best business builders in the world are assessing opportunities and building value in their portfolio companies. Here are some of the unique insights we generated during Q2 2022. The name of the game in the second quarter was value creation. Value creation accounted for 68% of all activity funneled through the BluWave engine. Value creation was so robust during this last quarter for a number of reasons. Number one, private equity firms invested in a large number of companies last year so they’re acting on those investments to begin transformation. Number two, deal flow is down. A lot of the best companies were sold last year. Other companies are pausing their ambitions as the economic cycle is softening and the results slow in kind. The other mega trend that is readily apparent in our data is the specter of inflation. The private equity industry is not resting on its laurels. It’s taking aggressive action to raise prices, reduce costs, and bring in the right people with the right skills for the current times. It’s our hope that the data and insights we’re sharing will help you build your business with more speed and certainty. If you’d like to learn more and get the full report, please contact any member of the BluWave team or follow a link below.

Urgent Analytics Expert To Create eCommerce Sales Strategy

Critical need for business analytics provider specializing in ecommerce sales

A middle market PE firm director came to us with an immediate need to optimize their portfolio company’s ecommerce sales via third-party platforms. With two of their primary sales channels being the world’s largest third-party ecommerce platforms, they knew they needed to optimize the opportunity that existed there. The PE firm and portfolio company were in need of a business analytics expert with a strong ecommerce background that could look at their third-party sales data and provide recommendations on how to increase the sales they made via these channels. They needed a provider that could provide holistic strategic recommendations that could be presented at the company’s board meeting in a couple of weeks.

Using our extensive network, BluWave identifies pre-vetted specialized provider

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE- grade business intelligence and analytics needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of analytics advisors 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 specialized business analytics consultant from our invitation-only Intelligent Marketplace that fit their exacting needs.

Firm successfully connects to niche ecommerce analytics consultant

Within 24 hours, the PE firm was introduced to multiple, specialized service providers with the exact-fit niche ecommerce analytics experience they were looking for. The client confidently engaged with their selected consultant and was able to start the project immediately. The provider started the project by first understanding the client’s sales data that existed on these platforms and then began to draw insight on how opportunity in these channels could be optimized through key word optimization, product tagging, and more.

Activating AI: Empowering Your Business for Success

June 2022 Roundup: BluWave Client Insights

July 1, 2022 Kyle Johnson

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 clients’ musings on creating value with digital transformation, boosting operating speeds, software delivery competence, and more.

A letter of intent can vary widely from style to specificity, depending on the buyer’s style. In most cases, the buyer and seller agree that an LOI should not be exhaustive, but there are key pieces it should cover. Montage Partners outlines the five topics for your consideration that they deem essential in an LOI in order to head-off potential future problems.

The “Playing to Win” framework” allows organizations to have a faster and lighter strategy design process, leverage the integrated choice-making throughout any strategic challenge they face, and significantly boost operating speed by having a clear perspective for decision-making. Insight Partners’ Operating Partner Pablo Dominguez and GTM Strategy Advisor Matt May dive into the five questions associated with this framework and how business leaders can use them to cultivate success.

ParkerGale’s Partner Jim Milberry is joined by Mangoteque Founder and Principal, Dave Mangot to discuss all things DevOps. Having helped many distinguished organizations become “best in class” through his philosophy of “Getting Good at Delivering Software”, Mangot’s conversation will Milberry breaks down the four keys that define a company’s competence in software delivery.

Listen to the podcast >>>

An MIT Senior Research Scientist joins the 2022 Macquarie Technology Summit to discuss the role of digital transformation in creating value and improving bottom-line performance, how leadership plays a pivotal role in successful digital transformation, how to think about digital solutions first, and more.

Watch the video >>>

Strattam Capital Co-Founder and Managing Partner Bob Morse shares his experience with “First Board Meeting Surprises”, when founders & CEOs are often surprised by actions the investment team outlines in their first board meeting post-close. Morse outlines his transparent approach to these meetings known as the Five-Point Plan that he has found successfully avoids shocking surprises and actually gets the founders & CEOs excited about the post-close action plan.

Here’s what some of our clients had to say last month about digital transformation, PE management, human capital, and more.

Imperative Sales Force Effectiveness and GTM Strategy Needed

PE firm urgently needs to assess effectiveness of sales team at healthcare portco

A middle-market PE firm Partner came to us with a prompt need to assess the existing sales team and go-to-market strategy at one of their portfolio companies that provides medical equipment and asset management services to the healthcare industry. The founder-owned portco was struggling with a high turnover rate and urgently needed to examine how to get the right sales team members in place. They were also in need of a new GTM strategy that they could execute once they had the right team in place. Having previously completed Voice of Customer (VoC) work, portco leadership was ready to take the next step.

BluWave identifies PE-grade consulting firms specific to the firm’s needs

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade sales effectiveness and GTM strategy needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of sales and GTM strategists 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 consulting firms from our invitation-only Business Builder’s Network that fit their exacting needs.

Firm engages with presented provider and moves forward to improve portco strategy

Within the same day of reaching out, the PE firm was introduced to a specialized sales effectiveness & training firm with additional experience developing GTM strategies for PE-backed companies. The client immediately engaged with this group and was able to start the project within 24 hours. The service provider we connected them with began by assessing the current sales processes and team members within the portco’s two verticals and then worked with them on developing an improved strategy.

IT due diligence provider with niche expertise

IT due diligence needed for business analytics company

A LMM Founding and Managing Partner came to us with a pressing need to perform IT Due Diligence on a company they were evaluating. The target was a business analytics company that ingests POS data from retailers, analyzes it, and then shares actionable insights with their clients. Given that the crux of the company was being able to ingest and then transform data, the managing partner was urgently looking to understand the tech stack and the internal-facing software. They needed a due diligence provider that could scrutinize data architecture, identify areas for improvement in the tech stack, and had experience evaluating inward-facing software.

BluWave connects client to pre-vetted technology advisory firms

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade IT due diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of diligence consultancies 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 technology advisory firms from our invitation-only Business Builders’ Network that fit their exact needs.

Client moves forward with top choice and gains needed IT insight

Within the same day, the PE firm was introduced to two select best-in-class technology advisory firms that specialized in IT due diligence for PE-backed companies. The client selected their preferred choice and started the project the next day. The PE firm was able to successfully engage the advisory firm and gain the IT information they needed in order to make an informed decision.

Hunt Scanlon 2022: Human Capital in Private Equity

June 21, 2022 Kyle Johnson

Last month, our team had the chance to attend Hunt Scanlon’s private equity recruiting conference in New York. At the conference, our founder & CEO, Sean Mooney, had the opportunity to sit on the panel, “The Art of Building Private Equity Leadership Teams,” alongside Jimmy Holloran of ParkerGale Capital, Amanda Roberts of L Catterton, Michelle Nasir of Arsenal Capital Partners, Kit Cooper of Signal Partners, and Adam Zellner of Business Talent Group. There were many value-filled panels throughout the day, allowing for hundreds of PE leaders to discuss and share their thoughts with one another on the current state of strategy, culture, and talent.

The pandemic has both accentuated and accelerated PE’s greatest challenges, and human capital is challenge #1. PE human capital leaders have quickly become the busiest people in the industry, demonstrated by our BluWave Activity Index which shows that 42% of PE projects in Q1 ‘22 were related to human capital, which was up from 36% in the previous quarter. Our key takeaways from the conference below share how talent leaders are staying busy and how they are creating efficiencies to drive more value while they are in such high demand:

1. The Need for a Data-Driven Approach to Talent

Business leaders are increasingly recognizing the importance and value of quickly getting the right talent in place across all organizations. According to McKinsey, organizations that get talent right in the first year see 2.5x ROI on their initial investment. Getting talent right is not just a necessity for the C-suite, 90% of critical talent needs in a company lie below the C-suite.
With so much at stake if you get talent wrong, many PE firms and proactive businesses are taking a data-driven approach to human capital in order to have best practices to track against.

2. Talent-to-Value

Not only does getting the right talent in place quickly improve ROI, it is also crucial to enable companies to deliver on their value creation plans. One way firms are ensuring they get the talent they need is by developing great relationships with their recruiting firms. This allows recruiters to gain a sense for what “talent for that specific firm” looks like.
While human capital is critical to value creation, everyone is fishing in the same pond for talent, creating difficulties in getting the talent you need. One solution to this is to take a holistic approach to talent identification & recruitment in which you identify the key targeted areas for value creation in a portfolio company and then systematically focus and prioritize solving the talent that will have an impact on the biggest value creation opportunities. This has been called the “Talent to Value” approach.

3. Growing Emphasis on Culture and DE&I

There is a growing emphasis on culture and DE&I in private equity
On the DE&I side, each firm needs to take a personalized approach that works for them. A good starting point is to take an initial framework and gather data internally to make sure everyone is included and heard. Then, needs should be measured on a quarterly basis to see how you are improving over time.
On the culture side, a focus on internal company culture will help with recruitment & retention efforts, which ultimately, will help you advance your value creation plans. One way to do this is to assess what currently sets your culture apart and then build on it from there. Additionally, interviews should be assessing if candidates have cultural alignment, as much as they are assessing if they have skill and will.

Balancing the art and science of connecting talent to value, amidst a tight market will be the key driver to success as we head into the second half of 2022. If we can be of any assistance, please let us know.

Additionally, you may be interested in checking out some of our human capital specific resources, which can be found here:

Interim CEO with Niche Manufacturing Expertise

Interim CEO with manufacturing expertise needed to help grow business

A principal at a LMM PE firm approached us with a critical need for an interim CEO with deep manufacturing expertise. Having held their manufacturing portfolio company for a full year, the firm was looking to bring in a new CEO in order to transition the old one out and grow the business. They had been searching for months for a replacement CEO but had not found one that fit their needs, so they were now in urgent need of an interim to help facilitate the transition of the old CEO while they kept searching for a permanent replacement. They needed an interim CEO as soon as possible that had knowledge of both standardized and customized machining processes and lean six sigma expertise.

Understanding the firm’s specific criteria, BluWave identifies pre-vetted interim CEOs

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim CEO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of experienced CEOs 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 CEO candidates from our invitation-only Business Builders’ Network that fit their exact needs.

The firm engaged the CEO to improve the company’s business operations

Within 24 hours of the initial scoping call, the PE firm and portfolio company were introduced to a PE-grade interim CEO candidate that had years of PE-sponsored experience in manufacturing. The client was able to successfully bring in the interim within the needed timeframe to transition the old CEO out, make business improvements, and lead as well as improve their operations until the permanent hire could be made.

PE VP Forum Recap | June 2022

June 9, 2022 Sean Mooney

Every quarter we gather Vice Presidents in PE to discuss current industry topics and to offer these peers the chance to gather, share information, and decompress with one another. In our most recent event, we discussed how scarcity and inflation are impacting human capital in PE as well as how firms are approaching finding opportunities in a choppy market. We’ve 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 PE VPs during our next PE VP Forum? Register here.

Scarcity and inflation impacting human capital: One of the unsung areas where inflation is impacting the economy the most is human capital.

Firms are taking a closer look at culture to increase retention and not just thinking about wages, but the total employee experience and related rewards.

Investments are being made in portco HR (CHROs, VPs, Directors) to collaborate with marketing functions on recruiting content to promote the benefits of an organization beyond dollars per hour. Portcos are also utilizing their current staff to recruit and network with candidates, such as incentivizing them with referral bonuses.

Another interesting concept is building in-house training programs to grow net-new talent pools instead of taking and losing employees to and from competitors.

Finding opportunities in a choppy deal market: The confluence of rising interest rates and geopolitical pressures are causing the deal market to become increasingly choppy. Firms are looking for ways to find opportunities in the face of risk and rising recession risk.

Teams are getting creative in deal sourcing by exploring new channels by moving down-market and supplementing with add-ons, focusing on proprietary or limited process situations, looking for failed auctions, and continuing to build new relationships.

It’s becoming increasingly necessary to be mindful of quality when selecting which deals to pursue and heightened diligence in underwriting, particularly when modeling downside scenarios. This has become even more important as we’ve seen multiples climb higher and higher over the past 12 months. Deal teams are adding extra layers of scrutiny to verify that businesses are valued at a level that will be appropriate over the coming foreseeable months.

Teams are spending significant time exploring targets’ operating leverage to understand performance in downside scenarios.

A number of firms are seeing an economic reset as an opportunity to find unique opportunities to potentially get quality assets at lower multiples, gain market share, and/or consolidate markets as weaker competitors seek safety and circle wagons.

We thoroughly enjoyed getting to gather with PE VPs to discuss these current industry hot 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 Deal Quarterbacks and access a toolkit that can help you do your job more efficiently here.

May 2022 Roundup: BluWave Client Insights

June 9, 2022 Kyle Johnson

BluWave works with over 500 PE firms from around the globe as well as their portfolio companies and proactive independent companies, connecting them with pre-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 clients’ musings on digital transformation, PE management, human capital, and more.

The continuous digital transformation of our world has completely changed the way consumers interact with retail brands. In this article, Macquarie dives into how new direct-to-consumer strategies are enabling brands to create personalization at scale, fundamentally changing the future experience of e-commerce.

Ever since private equity was “institutionalized” about 40 years ago, this thriving ecosystem has grown from roughly 20 PE firms to over 5,000 in the US alone. New Mountain Capital (NMC) CEO Steve Klinsky shares NMC’s growth story, style, and path to success. Klinsky outlines a $5.7B gain from just one company and a replicable process to create value for both businesses and the economy.

Monomoy Capital Partners investment team members, Matt Farrell (VP) and Charlie Johnson (Associate), sit down to share a little about themselves and what it’s like to be with the organization. This interview shares a peek at their company culture and the investment team.

Watch the video >>>

In honor of May being mental health awareness month, MiddleGround Capital’s Founding and Managing Partner John Stewart announced their strategic partnership with BetterHelp, the world’s largest therapy service. MiddleGround Capital is working towards ending the stigma surrounding mental health by providing these professional resources to their employees.

Watch the video >>>

ParkerGale Operating Team Partner, Jimmy Holloran, is joined by Ted Bililies, Managing Director at AlixPartners, on this episode of The Private Equity Funcast to discuss The Great Resignation, the rising prominence of talent recruitment and retention, and more.

Listen to the podcast >>>

Here’s what some of our clients had to say last month about retail industry news, ESG, and CEO perspectives.

Event Recap: PEI Operating Partners Forum 2022

June 7, 2022 Houston Slatton

Last week, I had the pleasure of moderating the “Unlocking the Transformative Due Diligence Imperative” panel at the PEI Operating Partners Forum in San Francisco. The panel included operating partner leaders Deborah Gallegos of Palladium Equity Partners, Drew Scielzo of ACON Investments, and Sheheryar Shah of ZT Corporate.

It was refreshing to be back in person with hundreds of PE ops partners to learn from their first-hand perspectives. Key takeaways included:

Executing value creation means that human capital remains a top priority for PE firms.

Ensuring the right management team and board leadership are in place allows for efficient execution against the value creation plan. Resource scarcity has had an immense impact on firms’ abilities to implement and execute plans. Industry leaders discussed tips for how PE firms can source and retain the right people at our recent human capital forum.

Leveraging technology to increase efficiencies is non-negotiable.

The aforementioned human capital challenges have tremendously accelerated digital transformation plans. PE firms are laser-focused on leveraging technology to increase efficiencies and reduce manual tasks to align with value creation plans. This allows portcos to reallocate resources to higher impact areas and rely on technology to solve for the monotonous, repeatable workflow.

Building trust with portcos’ management teams early on is essential.

Trusted partnerships between PE firms and their portfolio companies are vital to a successful investment. Building executive buy-in earlier on in the diligence process with a people-centric approach puts PE firms in a win-win situation. When the (right) management team has ownership in the decision-making process, this creates invaluable efficiencies between the PE firm and portco leadership teams.

If you’re interested in learning more about any of these, contact us here. You can also check out some of these resources: