PE Firms Archives - Page 31 of 43

In The Know: Interim Executives

March 11, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE firm clients. In our most recent installment, one of our Managing Consultants, Keenan Kolinsky, talks about one of the ways private equity firms are responding to The Great Resignation – Interim Executives. He shares why the need for interim executives is rising in private equity, how they can be used, and why they are beneficial especially to PE firms.

Interested in learning more about interim executives, how our clients have utilized them, and how we help? Check out our Interim Executives Hub to find case studies, scorecards, and more.

You can also learn more from Keenan in the video below.

Interested in connecting with an interim executive? Contact us here or click the “start a project” button above. We would be happy to promptly begin assisting you.

February 2022 Roundup: BluWave Client Insights

March 2, 2022 Delaney Walker

BluWave works with over 500 PE funds 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 reports, insights, and musings from a handful of our PE fund clients on everything AIOps, cybersecurity, 2021’s deal frenzy, and data.

Advent shares why they are excited by businesses in the digital innovation industry and goes into detail about their BigPanda platform, why it is a disruptor in the AIOps market, and how it is sustaining the digital lifeline.

Read the blog >>>

Cybersecurity threats are always increasing in today’s business landscape and the leader of Blackstone’s Portfolio Cybersecurity team, Adam Mattina, shares five approaches you can take to build more resilient companies as it comes to cybersecurity – including knowing your footprint and identifying your lineup of outside experts.

Learn more >>>

Brad Armstrong, Partner at Lovell Minnick Partners, speaks to the deal frenzy that was 2021, what the expectations are for M&A activity in 2022, and why the outlook remains positive.

Crucial ERP selection & implementation consultant to integrate disjointed systems at portco

Large Cap firm needs ERP consultant with industry expertise

A VP at a Large Cap firm came to us with a critical need for an ERP consultant for one of their portcos. Since the acquisition, the PE firm knew that the company’s disjointed tech stack would need to be integrated. The portco CFO’s role specifically was lacking efficiency due to the lack of integration between systems, so the firm urgently needed an ERP consultant with industry experience that could help select and implement the new system. Knowing how critical this project was to advancing the portco CFO’s performance, he was quickly looped in as the decisionmaker.

BluWave identifies pre-vetted, specialized providers

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade ERP selection & implementation needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of ERP consultants that uniquely meet the private equity standard. We interviewed the PE firm and portco CFO to understand their specific key criteria and then introduced them to three select pre-vetted firms that specialized in ERP selection & implementation from our invitation-only Intelligent Network that fit their exact needs.

Firm engaged ideal choice to select and implement an ERP

Within 24 hours of the initial scoping call, the PE firm was presented and introduced to the three select firms. All firms not only had a deep knowledge of ERPs but also had specialized experience in selecting and implementing ERPs for businesses in the construction industry. The portco CFO had follow-up calls with each of the firms in order to make a final decision and selected their ideal choice. They got started right away on successfully selecting and implementing an ERP for the portfolio company.

PE VP Forum Recap | February 2022

February 21, 2022 Kyle Johnson

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 many topics and have 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.

Firm Differentiation: Both fund-raising and then deploying capital are increasingly pressurized in 2022. Business owners and LPs are trying to differentiate between approaching PE firms. It’s important to LPs and owners (especially founders) that you and your firm are doing something “different”- either from a track record or industry knowledge perspective. Some firms are leaning into well-defined theses with continued pressure testing, and many are complementing this with additional operational or advisory resources. Firms can make deeper connections with owners by relying on the experience of operating partners or senior advisors who have true industry experience. Show that you as an investor know where businesses have been, where they are growing, and how you can help them reach potential.
Deal Sourcing: When it comes to identifying potential assets for acquisition, firms are approaching this task in different ways. Some are sticking strictly to investment theses and related lists of companies, then ticking down these lists. Others are leaning heavily into the connections of their LPs and Partners. Not only does this make networking with business owners easier, but deal teams can move quickly once they have exclusivity due to their existing knowledge of the vertical. Focus on geography worked to the advantage of some firms during the pandemic, and firms are finding it easier to build a relationship with business owners who are local to them. Whether this means more in-person meetings or simply the connection between people from a similar area, it’s driving meaningful deal flow.
Developing and attracting junior talent: How to get junior talent in the door? If your firm is based in a smaller or more regional city (St Louis, Detroit, Nashville), stay in touch with those who are local to the area but may be working in banks along the coast. Many were interested in returning “home” during the pandemic. Other firms are cultivating relationships with local investment banks and hosting happy hours to meet with potential associate talent, thus creating a local pipeline to source junior talent. Some firms are looking beyond strict modeling skills (which can be taught), and leaning more into prioritizing soft skills and executive presence. Once these hires are made it’s important to get them involved in workstreams that make them feel like they’re contributing to firm initiatives. Culture is key, which is becoming easier as people return to the office.

We thoroughly enjoyed getting to gather with PE VPs to discuss these current industry hot topics. We’s be happy to connect you to the PE-grade, exact-fit, third-party resources to assist you in this tight 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.

Sean Mooney on The Private Equity Podcast

February 18, 2022 Delaney Walker

Recently, BluWave founder & CEO, Sean Mooney, spoke with Alex Rawlings on The Private Equity Podcast about how PE firms and their portfolio companies can develop better communication and therefore better relationships. They discussed common mistakes by PE firms and portcos, how PE investors can better connect with portcos, how to select the best service providers, and more. They also discussed insights into the private equity industry and what Sean misses from his PE partner days.

Interested in listening to the whole podcast yourself? Click below.

Check out some of the other podcasts Sean has shared his wisdom on, including Private Equity Funcast, Growth Think Tank, & Middle Market Musings.

If we can help you be successful by quickly connecting you to the PE-grade, pre-vetted, third parties you need, give us a shout.

10 Common Cybersecurity Gaps & How to Avoid Them

February 15, 2022 Delaney Walker

The COVID-19 pandemic accelerated our world’s digital transformation and has made businesses increasingly more virtual. In a tech-driven world, cybersecurity is vital to a business’ success, and it’s an area that is constantly evolving as the tech landscape shifts with new advancements. In fact, in 2021, we saw IT strategy land the number 6 spot in the BluWave Value Creation Index, signifying that cybersecurity was a top area of focus for PE firms, their portfolio companies, and proactive companies.

Staying up to date with the latest and greatest in cybersecurity is a full-time job that most companies don’t account for, causing many to fall short in digitally protecting their business. Thankfully, there are service providers out there that can take on this vital job for you and take care of your cybersecurity needs.

Curious what you may not be doing that you need to be? Trying to determine whether or not third-party cybersecurity expertise is something you need? Check out the PDF below to discover the 10 most common cybersecurity gaps companies face and how to avoid them.

If any of these gaps resonate with you, it may be time to connect with a third-party provider. We have a deep bench of PE-grade, pre-vetted service providers with specializations across various industries that we would be happy to connect you with – contact us here or use the “Start a Project Button” in the top banner.

Interested in learning more about how we can help with firms’ and companies’ digital and IT-related needs? Check out the below case studies:

Women in PE Forum Recap | February 2022

February 14, 2022 Kyle Johnson

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 trending topics of continuing 2021 trends, deal process pressures, and inflation. We have shared the themes we heard discussed across different areas below.

These forums are invite-only and follow Chatham House Rules, so listed below are high-level takeaways only. Are you a woman in private equity and interested in joining fellow leading PE professionals during our next Women in PE Forum? Register for our upcoming Women in PE Forums here.

Continuing 2021 Trends: Many 2021 trends will continue into 2022. Deal flow will remain high and multiples will remain high. Once interest rates are raised, public valuations should slow, which may stabilize private valuations, likely around Q4. With so much capital chasing deals right now, multiples may stay high through 2022.
Deal Process Pressures: Only put resources towards deals you have a conviction against. Zoom made it easier to attend management presentations, so there is more competition than ever before. It is essential to have some type of differentiation to make yourself competitive. As timelines are crunched, and providers are booked up, it’s also essential to line up diligence providers at the start of the deal.
Inflation: The vast majority of portfolio companies are struggling with inflation and supply chain disruption. Portfolio companies need to figure out how to pass the increased prices along to the customer or absorb the higher prices. It’s okay to “fire” customers – if margins are too thin, it may not be worth keeping some customers.

We thoroughly enjoyed getting to gather with other leading women in PE to discuss these trending topics. If we can be of help with any of the above, we’d be happy to quickly connect you to the exact-fit, PE-grade, third-party resources you need.

Interested in learning more about BluWave? Check out our Introduction to BluWave video to learn more about us and how we can help you. If you have an immediate need, contact us here or use the start a project button above – we’ll be happy to help you right away.

In The Know: Combatting Pricing Woes

February 9, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE firm clients. In our most recent installment, one of our Private Equity Consultants, Ryan Perkins, talks about the significant upswing COVID caused in the price of inputs. He shares two approaches companies can take in order to solve for this challenge, the negative impacts of each approach, and how BluWave can help in these scenarios.

Ryan gives an example of how we recently helped a high volume CPG business update their pricing across their product set, stay competitive with their eCommerce counterparts, and grow margins across their portfolio.

You can read another example of how we’ve helped a client with pricing strategy in this case study.

Learn more in the below video.

Do you need to get connected to a pricing analysis consultant or any other third-party resource? Be sure to click the “Start a Project” button above, or contact us here and we would be happy to get started in assisting you.

Why Specialized Commercial Due Diligence is Vital for PE Funds

February 8, 2022 Kyle Johnson

2021 was a record-breaking year for private equity, with total deal value reaching $1.2 trillion according to Pitchbook, and it isn’t expected to slow down in 2022. With record amounts of dry powder in the market ($1.32 trillion as of September 2021), S&P Global states that the demand for deals is driving valuations up. Between the pressure to find the right deals in a market that is flooded with opportunity, and the high prices that have to be paid in order to win a deal, commercial due diligence is more important than ever in order to ensure funds are being spent wisely.

A process that was once reserved for large cap funds with extra capital to spend on assessing a company’s potential end market in order to determine the soundness of the investment, commercial due diligence is quickly becoming a necessary standard operating procedure for all proactive PE funds. With this evolution of who is utilizing commercial due diligence comes the evolution of how it’s performed– no longer is it an activity reserved for generalist consulting firms. Private equity firms have discovered that in order to drive alpha in a sea of beta, smaller, more specialized commercial due diligence providers can provide them with more unique insights quicker.

Going Deeper Faster

Any consultant can accomplish commercial due diligence’s goal of providing intelligence on a target’s total addressable market, prospects for growth, competitors, risks, and other vital information through initial industry research. But specialized consultants with pre-existing industry knowledge don’t have to waste their time scratching the surface trying to gain a sense for the industry. Instead, they can provide a heightened sense of value by using their base knowledge to dig deeper and therefore provide more in-depth insights in the same amount of time.

This is why it’s no surprise that over the past 3 years, commercial due diligence has remained the #1 Use Case in the BluWave Due Diligence Index. Firms have recognized the long-term value that lies in going outside of their normal providers to work with small shops and independent consultants that can provide deeper insights faster.

Providing a Head Start for Value Creation

Commercial due diligence isn’t just a process that helps PE funds make wise investments – it establishes a foundation for future growth. The average holding period for PE assets is five years, which is a sound reminder that funds are often interested in forging long-term relationships with the companies in their portfolio. This is why it’s essential for the commercial due diligence process to be more than a routine vetting exercise and a perfunctory look at a company’s market. It should help funds explore opportunities for growth and methods of adding value that can turn a company into something its leaders never imagined.

By providing deeper insights into the nuances of an industry and having experience within it, specialized commercial due diligence providers are uniquely equipped to identify various opportunities for a target’s growth. With multiples at a historic high, this head start on value creation initiatives ensures your team will be able to hit the ground running and provide quick returns on the investments.

Ensuring Available Capacity

In a market flush with M&A activity, we experienced deal surges in 2021 that led to provider scarcity, especially within the larger go-to commercial due diligence providers. A benefit of specialized commercial due diligence providers during these times is their more available bandwidth. Because they aren’t being run to with projects across 8 different industries, they have the capacity to take on the projects that fall directly within their sweet spot. Even when service provider constraints have strapped the market, BluWave has maintained a 100% fill rate with commercial due diligence requests.

Over the past year, we have seen many firms that have resorted to a smaller, more specialized provider in times of scarcity permanently switch their processes going forward to always using a specialized provider due to the valuable insights they gained. In times where other PE firms are struggling to get the insights they need on the timeline they need, equipping yourself with unique insights quickly will provide you with competitive edge.

Interested in seeing how we’ve helped PE firms by connecting them to the specialized commercial due diligence providers they need? Check out these case studies:

We’d be happy to get started on connecting you to the specialized commercial due diligence provider you need, just give us a shout or use the “Start a Project” button in the banner above.

Human Capital Forum Recap | February 2022

February 7, 2022 Kyle Johnson

Every quarter we bring together top PE HR and talent executives to discuss current industry topics and to offer talent leaders in private equity 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 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? RSVP for our next event on May 4th.

Talent identification & recruitment:

As firms continue to struggle with portco executive talent identification & recruitment, firms are having particular success exploring non-traditional recruiting tactics in a supported way, i.e. hiring from non-PE backgrounds but providing support to skill-up the newcomers.
Firms are using the assessment process to understand what drives and motivates candidates and then leaning into these aspects to not only identify candidates’ strong points but to also sell the job prospect without having to lean 100% on compensation. Another tip we heard on successfully closing the deal was to provide candidates with transparency for what happens post-exit, such as having successful case studies ready to show the candidates where past execs moved after a sale.
Using data – firms are exploiting their CRM by skill-coding candidates and having them on-hand when perfect-fit roles open.
Timing is key and shortening recruiting cycles seems to be the most assured way to increase the hiring success rate. PE firms are recommending that portfolio companies implement applicant tracking systems to help standardize and streamline recruiting processes.
One human capital leader recommended reading “Who” by Geoff Smart.

Assessment, onboarding, & setting executives up for success:

Clarity and coaching are key. Set expectations from the beginning by showing the good, the bad, and the ugly with the portco. Then, share how the firm will support the exec and what the firm expects from them.
Provide the exec with the tools needed to hit the ground running—internal resources, systems, supplements to their development points, etc. and then give them the space to do the job. If PE ownership requires another 40% of their time at the outset, consider external resources to do the upfront heavy lifting.
One participant recommended providing new hires with an internal company culture “river guide” to help them understand and navigate the unique cultures of a given company. This is particularly helpful for new CEOs who are tasked with being change agents.
One human capital leader recommended reading “The First 90 Days” by Michael Watkins.

Development & retention:

Use transparency in showing portco executives their development path and opportunities.
Firms vary on the resources they rely on for training on organizational health, leadership development, and other skills. Many are (at least beginning) full talent reviews of exec teams of portcos and increasingly implementing this practice with internal PE fund talent.
Employee engagement surveys are critical to understanding cultural and organizational health over time. How to get it started? Find a partner who buys in, start with baby steps, and show measurable success.

We thoroughly enjoyed the fruitful conversations that occurred during this recent gathering of PE human capital professionals. As noted in our 2021 Annual Insights Report, human capital remains one of the top initiatives in PE, with HR-related activities surging to 39% of all PE activity in 2021. If we can be of assistance during this busy time, please let us know.

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

In The Know: The Need for Go-To-Market Resources

February 3, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE fund clients. In our most recent installment, our consulting manager, Scott Bellinger, talks about why we have seen an increase in go-to-market & growth strategy needs and how we are supporting clients with those. He shares that growth strategy is continuously increasing, with GTM being the third most used Value Creation use case in 2021, according to the BluWave Value Creation Index.

One of the most common ways we are helping clients with growth strategy needs is by connecting PE funds and their portfolio companies to senior advisors and consultants that can help them expand their reach outside of their current established market.

You can read another example of how we’ve helped a client with a go-to-market need in this case study.

Learn more in the below video.

Do you need to get connected to a GTM or growth strategy resource? Be sure to click the “Start a Project” button above, or contact us here and we would be happy to get started in assisting you.

January 2022 Roundup: BluWave Client Insights

February 2, 2022 Kyle Johnson

Check out the latest, curated collection of reports, insights, and musings from a handful of our PE fund clients on everything from community building across your portfolio, expected surprises for 2022, operational due diligence, and go-to-market strategies.

On the latest episode of The Private Equity Funcast, Jim, Cici, and Jimmy discuss their approach to building community within their portfolio. They share what has worked and what hasn’t for them, why community building is beneficial, and how they’ve seen their efforts have a positive impact across the companies within their portfolio.

Listen to the podcast >>>

Byron Wien and Joe Zidle share the unexpected, yet probable events that they think could shape the political, economic, and financial landscape in 2022. Some of the surprises they expect include persistent inflation becoming a dominant theme, group meetings and conventions returning to pre-pandemic levels by the end of the year, and ESG evolving beyond corporate policy statements including government-enforced regulatory standards.