Private Equity FunCast

A deep dive into what happens right after a buyout, from standing up governance and boards to onboarding leadership. They explore spotting talent gaps across sales, product, engineering and finance. Practical moves like tightening CRM reporting, using support data for quick wins, and how operating partners bridge execution gaps are highlighted. The conversation stresses curiosity, connection and trust-building in the first months.

A behind-the-scenes tour of how firms find and win companies through banker-led auctions and direct founder outreach. They trace sourcing from old-school phone calls to CRM-driven arms races and explain banker tiers, bidding signals like IOI vs LOI, and deal mechanics. Listeners hear about diligence surprises, working capital negotiations, and the human side of closing and onboarding.

A candid look at raising a first private equity fund, from relentless pitch practice to surviving awkward and chaotic meetings. Practical talk on whether to hire placement agents, preparing key fund documents, and building a targeted LP list. Tales of momentum-building tactics like staging launches and unblinding deals. Honest advice on managing energy and persistence during the long fundraising grind.

They rewind to a dinner that sparked leaving steady jobs to create a new private equity firm. They map fundraising timelines, naming and branding rules, and lean startup choices to fund a burn. They compare firm structures like independent sponsor, holdco, and traditional funds. They discuss targeting founder-owned B2B software, deal sizing, team skillsets, and building culture while scaling relationships.

They trade hot takes on fundraising trends and which firms will thrive in a barbell market. Liquidity forecasts focus on secondaries and continuation vehicles. Deep discussion on why AGI is still years away and how LLMs serve as interfaces. Predictions that domain-specific AI models and embedded AI features will dominate product strategy. Cybersecurity and cloud costs get special attention for due diligence.

Scott Middleton, CEO and founder of Terem Capital, dives into the world of Australian software holdcos. He shares his journey from selling a mobile game at 14 to successfully spinning out enterprise software. Scott explains different holdco models and details Terem's accumulator strategy for acquiring B2B tech firms. He highlights the Australian market's potential, emphasizing patience in management and M&A. With a keen focus on automation and operational efficiency, he reveals his criteria for selecting tech targets and near-term acquisition plans.

Sean Lucq, a Partner at SPMB Executive Search, specializes in hiring for tech firms. He dives into the nuances of recruiting senior engineering and product leaders, especially amidst the AI hype. Sean discusses the importance of having a dedicated Head of AI versus integrating it within engineering roles, emphasizing practical applications of AI like code reviews. He also reveals insights into what candidates should communicate to stand out—showing tangible business impacts—and shares entertaining recruiting tales that highlight the unpredictable nature of tech hiring.

In this episode of The Private Equity Funcast, Jim Milbery sits down with Jennifer Nelson (CEO of Izzy Software), Richard Malone, Rob Swanson (co-founders of CNX Corporation), and Iwona Montgomery to talk about CNX's nearly 30-year glow-up — from green screens to the cloud. After almost three decades in the biz, CNX just joined forces with Izzy Software, and the result? Legacy systems that finally got the spa day they deserved. We dive into how moving to the cloud has made life easier for developers and why low-code tools are giving old-school software a serious second act.

Leah Reich, an accomplished UX researcher with a PhD in sociology, shares her unconventional journey from Medieval French literature to leading user experience at top tech companies. The conversation delves into the nuances of understanding user needs versus stated wants, revealing why many products miss the mark. Leah emphasizes the importance of empathizing with users' emotional contexts and the risks of misplaced innovation, using the Juicero case as a cautionary tale. With insights into designing for real workflows and team dynamics, listeners are invited to rethink the essence of user experience.

Shiv Narayanan, founder of How to SaaS and author of Exit-Ready Marketing, shares his expertise on optimizing marketing for private equity-backed companies. He highlights the critical role of measurable marketing strategies in driving business value, emphasizing the need for better alignment with PE priorities. Shiv discusses common marketing pitfalls, effective data-driven practices, and the importance of clear communication with boards. Tune in for insights on creating a marketing function that truly propels growth.