The Private Equity Podcast Alex Rawlings

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings talks with Javar Avery, President at Sun and Moon Capital. They delve into micro-cap investing's potential and the essential role of operational playbooks. Avery discusses the rationale behind focusing on smaller, often overlooked companies, detailing the importance of detailed due diligence and strategic deal-making. He highlights overcoming key risks, like key man risk, and maintaining owner engagement for success. The episode also touches on Avery's influences and reading recommendations, offering insights into effective strategies for micro-cap investment growth.

Breakdown:

[00:00] Javar Avery discusses the potential of investing in micro-cap companies and wonders why larger firms aren't more active in this space.
[00:15] The focus is on market competition, management, and team evaluation, introducing governance playbooks for strategic guidance.
[00:37] Introduction to Javar Avery and Sun and Moon Capital's focus on microcap investing, targeting companies with $1 million to $2 million of EBITDA.
[01:07] Exploring the opportunities and challenges in microcap investing, and Avery's emphasis on the use of playbooks for business implementation.
[01:37] Avery provides a brief overview of his background, his role at Sun and Moon Capital, and his personal life.
[02:59] Discussion on common mistakes in Private Equity and the necessity for having a clear rationale and strategy for deals.
[03:26] Avery shares an experience with a deal that lacked rationale and emphasizes the importance of having a structured due diligence process.
[04:47] The significance of playbooks in overcoming integration challenges and maintaining structured operations post-acquisition.
[06:35] Avery discusses his interest in micro-cap investing, influenced by recognizing the potential value and challenges in smaller businesses.
[08:30] Reasons behind choosing micro-cap investing include less competition, potential for significant value addition, and the unique challenges of smaller businesses.
[12:46] Details on Sun and Moon Capital's due diligence process, tailored to their investment rationale and focused on commercial, financial, and management evaluations.
[15:12] The ECE strategy used by Sun and Moon Capital to provide operational support without running the companies directly.
[17:06] Key risk factors in micro-cap investing, such as key man risk and concentration risks, and strategies to mitigate these risks including retaining skin in the game for owners.
[19:34] Avery shares his reading interests, emphasizing autobiographies, business insights from books like "Moneyball," and his passion for learning outside his expertise.
[23:32] Recommendations for books and influences, highlighting the importance of different perspectives and personal development.
[28:14] Contact information for Javar Avery and an invitation for listeners interested in learning more or seeking investment opportunities to reach out.
[29:10] Closing remarks, thanking Javar Avery for his insights into micro-cap investing and the critical role of operational playbooks.

You can connect with Javar Avery on LinkedIn by visiting his LinkedIn Page.
Thank you for tuning in!

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings talks with James Mackey, the Managing Director of Climate Investment. They discuss the advantages of a focused investment strategy for boosting deal flow and addressing the climate crisis. James highlights the importance of precise investment criteria in attracting impactful projects, especially in hard-to-abate sectors like heavy industry and transportation. He stresses the need for realistic assessments and data-driven decisions to scale investments effectively. The conversation offers key insights for investors aiming to contribute significantly to environmental sustainability through disciplined investment approaches.

Breakdown:

[00:00] James Mackey discusses deal flow and the selective nature of investments under Climate Investment's focused mandate.
[00:17] Highlighting how specific criteria and investment goals can increase deal flow, contrary to the belief it might limit opportunities.
[00:43] Shifting to the role of private equity and venture capital in addressing climate change through strategic investments in critical sectors.
[01:13] Introduction to James Mackey and his role at Climate Investment
[02:12] Mackey outlines his background and Climate Investment's mission for strategic decarbonization investments.
[03:07] Detailing Climate Investment's focus on sectors with high carbon footprints and the challenges in attracting necessary capital.
[04:07] Emphasizing the scale of impact and the targeted carbon reduction goals of their investments.
[05:05] Discussing the Oil and Gas Climate Initiative's evolution and its broader mission beyond the oil and gas sector.
[06:02] Exploring the engagement model with LPs and the success of pilot programs and commercial orders for portfolio companies.
[06:54] Addressing common mistakes in underestimating execution challenges and the importance of realistic goals.
[08:19] The necessity of data-driven approaches and asking critical questions to evaluate investment potential.
[09:18] Highlighting the importance of being data-driven in understanding the potential for disruption.
[12:08] The challenges in finding investments with significant carbon impact and the stringent selection criteria.
[14:33] Example of evaluating a plastics recycling business and its difficulty in meeting carbon impact requirements.
[16:28] Discussing Climate Investment's strict investment model, driven by clear focus and robust deal flow.
[19:24] On the current capital flow towards climate improvement and the need for more targeted investment in neglected sectors.
[22:20] Highlighting the mismatch between capital flow and emission sources, stressing the need for catalytic capital in emerging sectors.
[25:13] Discussing investment horizons, compensation models, and incentives for directing capital towards impactful solutions.
[26:11] Mackey shares his approach to staying informed through diverse news sources and listening to inspirational podcasts.
[28:04] Providing contact information for James Mackey for investment proposals or inquiries.
You can connect with James Mackey on LinkedIn by visiting his LinkedIn Page.

Thank you for tuning in!

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings chats with Reuben Munger of Vision Ridge Partners about the intersection of Private Equity and sustainable investments, focusing on the electric transportation revolution. Munger, a pioneer in sustainable real assets, shares insights into transitioning from hedge funds to Private Equity with a sustainability lens, and the impact of electric vehicles and infrastructure on the environment and investment returns. Dive into this engaging discussion on how Vision Ridge Partners is leading the charge in sustainable investments, shaping a greener future through strategic, impactful projects.

Breakdown:

[00:00] Definition and focus on Vision Ridge Partners’ approach to investing in sustainable real assets.
[00:15] Discussion on building and owning charging systems, operating electric fleets, and the firm's role in sustainable investing.
[00:43] Insight into the focus on vehicle electrification, niche specialization in private equity, and the broad appeal of narrowing focus.
[01:09] Munger shares his journey from the hedge fund industry to private equity focusing on sustainability, managing over $3 billion across various sectors.
[01:39] Munger discusses the motivation behind the shift and the value of active ownership and sector-specific knowledge in private equity.
[03:02] Discussion on the need for infrastructure and real assets to become more sustainable, focusing on efficiency and lower resource intensity.
[04:29] Vision Ridge’s approach to investing in assets with a sustainable edge and the transition from "gray to green."
[06:40] How sustainability shapes Vision Ridge's investment strategy and decision-making process.
[07:39] Differences in sustainability mindsets between Europe and North America and how it affects investment strategies.
[10:05] Discussing unexpected opportunities and challenges in portfolio companies, emphasizing agility and innovation.
[11:55] How Vision Ridge’s focused approach has benefited the firm in terms of differentiation, expertise, and deal flow.
[16:18] Discussion on electrification in the transportation sector, including commercial vehicles and the impact on sustainability.
[21:38] Alex Rawlings mentions Raw Selection's role in private equity executive search and salary surveys.
[22:08] Insights into the transition towards electric ferries and the challenges of electrifying longer maritime routes.
[23:59] Exploration of competition and collaboration in the electrification of commercial vehicles.
[25:55] Munger shares his recommendations for podcasts, books, and resources that inspire him in the field of sustainable investing.
[28:51] Closing remarks and how to contact Reuben Munger for further discussion on sustainable real assets and electrification.

You can connect with Reuben Munger on LinkedIn by visiting his LinkedIn Page.


Thank you for tuning in!

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this episode, we delve into the world of ESG in infrastructure investment with Gwen Colin, ESG Director at Vauban Infrastructure Partners. Gwen shares insights on the differences between ESG practices in the US and Europe, the challenges of implementing ESG strategies, and the impact of long-term investment on sustainable growth. Discover actionable ESG strategies, learn from Gwen's journey, and explore how to integrate sustainability into your investment approach. Join us for a deep dive into making ESG a pivotal part of your business strategy.
Breakdown:
[00:00] Introduction to Gwen Colin and the focus on ESG within infrastructure across the US and Europe.
[01:04] Gwen shares her background, emphasizing her shift from legal advisor to leading ESG initiatives.
[02:04] Discussion on common ESG implementation mistakes and the importance of a long-term perspective in asset management.
[04:24] Insights into the governance differences between the US and Europe in ESG practices.
[08:39] The rationale behind Vauban's long-term investment strategy and its impact on ESG.
[14:24] Successful ESG strategies in portfolio companies, focusing on decarbonization and community impact.
[19:58] Gwen's personal influences, recommending "What We Owe Each Other" by Minouche Shafik for broader learning.
[22:21] Closing thoughts on the importance of ESG in infrastructure and a thank you to listeners for their continued support.


You can connect with Gwen Colin on LinkedIn by visiting her LinkedIn Page.

Thank you for tuning in!

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! In this episode we dive into the world of ESG with Cornelia Gomez, Global Head of ESG and Sustainability at General Atlantic. Cornelia brings a wealth of experience, sharing how to seamlessly integrate ESG into Private Equity, enhance business growth, and navigate sustainability challenges. Discover actionable ESG strategies that drive value and prepare companies for a sustainable future. 

Breakdown: 
[00:00] Introduction to Cornelia Gomez's background and role at General Atlantic.
[00:33] The conversation focuses on the unique challenges of implementing ESG strategies in growth equity firms compared to later-stage companies, emphasizing the importance of tailored approaches for hyper-growth companies.
[01:30] Cornelia shares her personal and professional background, underscoring her dedication to leveraging business as a force for addressing global challenges such as modern slavery, rising inequalities, and climate change.
[02:25] Insights into Cornelia's career journey, from working on supply chain sustainability in Asia to leading ESG initiatives in the Private Equity sector.
[03:55] Discussion on common mistakes made by Private Equity firms and portfolio companies in ESG, particularly the neglect of governance aspects, and strategies to enhance governance practices.
[05:22] Cornelia addresses the need for comprehensive governance in ESG initiatives, including board governance quality and oversight on sustainability risks and opportunities.
[06:42] Highlighting the gap between executive teams and boards in terms of ESG awareness and training, suggesting a need for more direct communication and education on ESG issues at the board level.
[09:52] The conversation shifts to strategies for effectively communicating ESG principles within companies, emphasizing the importance of aligning ESG discussions with executive interests and operational realities.
[11:33] Cornelia discusses her learning curve at General Atlantic, the importance of scalable ESG initiatives, and the focus on data-driven approaches to engage portfolio companies in meaningful ESG actions.
[18:45] Insights into how General Atlantic integrates ESG considerations throughout the investment lifecycle, from due diligence to exit strategies.
[21:22] The strategy of using ESG playbooks and targeted engagement based on company clusters to address specific ESG challenges and opportunities within the portfolio.
[24:08] Cornelia shares examples of successful ESG engagements and the importance of coordinated efforts among PE firms, portfolio companies, and co-investors to achieve sustainability goals.
[30:45] Discussion on the concept of "gold standard" in ESG implementation, highlighting the need for actionable plans, robust governance, and continuous monitoring of ESG initiatives.
[38:02] Cornelia offers personal recommendations for podcasts, music, and activities that inspire her, along with the value she finds in mentoring and interacting with the next generation of leaders.
[41:54] The episode concludes with advice on reaching out to Cornelia for further discussion on ESG and other topics.

You can connect with Cornelia Gomez on LinkedIn by visiting her LinkedIn Page.

Thank you for tuning in!

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast! This episode provides valuable insights into the mindset and strategies of a successful entrepreneur who has founded and managed multiple businesses. Allan Draper's experiences offer lessons on leadership, the importance of delegation, and the value of aligning with passionate individuals, all crucial for Private Equity investors and portfolio executives aiming for growth and success.

Breakdown: 
[00:00] Introduction to Allan Draper's business portfolio, highlighting his principle of delegation and efficiency.
[00:28] Alex Rawlings explains the value Allan brings to the podcast, focusing on insights for PE investors and C-suite executives from a founder outside the PE space.
[01:52] Allan provides an overview of his entrepreneurial journey, emphasizing his role in assisting others to build their businesses and wealth.
[02:50 Discussion on the challenges and motivations behind starting and running multiple businesses, particularly the love for the startup phase.
[03:50] Allan shares his strategy for business growth, focusing on finding passionate people to run the businesses, enabling him to continue creating new ventures.
[05:19] The importance of hiring the right people and the difficulty in letting go of control.
[06:17] Allan advocates for the principle that 80% done by someone else is better than 100% done by oneself.
[08:12] Challenges in hiring executives and Allan's approach to identifying leaders who share his vision and passion.
[10:30] Advice for executives on leadership, highlighting transparency, vulnerability, and the importance of taking care of employees.
[11:27] Allan's insights on igniting passion and drive within an organization, emphasizing accountability, autonomy, and recognition.
[14:18] Allan recounts the journey of scaling Proof Pest Control, from its challenges to achieving significant growth.
[17:12] Discussion on the role of acquisitions in scaling the business and the strategic choice between organic growth and acquisitions.
[18:39] Building a strong brand and the importance of consistency and faith in business success.
[20:34] Allan addresses the biggest challenges faced, including business partnerships and hiring the right personnel.
[22:59] Allan's perspective on motivations at work.
[27:20] Advice for chief executives on how to exude passion and engage like a business founder.
[29:48] Allan shares insights on engaging with PE firms and the importance of personalized and informed approaches.
[32:13] The effective strategy forPE firms when approaching potential acquisitions, focusing on understanding and aligning with the seller's vision.
[35:58] The significance of ensuring continuity of service and customer care in acquisitions.
[37:26] Allan recommends influential books and resources for entrepreneurs and business leaders, including his own content platforms.
[39:22] Closing remarks, with Allan extending an offer for free consultations with entrepreneurs and expressing his passion for business mentorship.

You can connect with Allan Draper on LinkedIn by visiting his LinkedIn Page: Allan Draper LinkedIn


Thank you for tuning in!

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.