Blog

Private Equity folks care deeply about industry experience. That is their very first acid test. I cannot tell you how many people don’t even mention industries in their resumes. They talk all about being a great leader, what metrics they’ve achieved, and their education, but nowhere is their industry expertise. To PE professionals, your industry subsectors matter at the get-go more than anything since that’s how they know which bucket you belong in. Please position yourself in your industry right up front.

The other critical number in private equity is 20%. Generally, in addition to receiving the entire principal back, the LPs receive 80% of the returns generated (the money made over and above the principal invested) and the PE GPs take home 20% of the returns. AND, despite the best efforts of some legislators, that 20% return is still only taxed at a Capital Gains rate of 20% (assuming they hold their investments for 3 years - they just dodged a bullet trying to increase that to a 5 year hold), so they only have to pay 20% instead of income tax rate of closer to 35%+. Being a GP can be very lucrative. The LPs can make great returns for their shareholders/stakeholders, and the GPs make a buck in the meantime. IF they do well. What happens if they don’t?

You say toe-may-toe, I say toe-mah-toe…

“Industrial IOT companies with low key employee turnover and high recurring revenues are commanding the highest EBITDA multiples of 25.3X across all of the tracked industries. Translated, that means if a company had $25 million in EBITDA, and it sold for 25.3X, the sale price would be $632.5 million!”

We’ve established where the money comes from - the Limited Partners (LPs), but where is it going? And, how is money made on that money by the General Partners (GPs)? There are a number of different strategies firms use - to boil it down, private equity firms buy companies. Most of the time they buy majority control positions in those companies to control the board of directors. Although there are also PE firms that will buy into minority positions. Each firm applies their own proprietary “strategy” in deciding which companies to buy, and once acquired, they then execute a carefully developed plan for that company to generate a return on their investment. This is a gross simplification. There is a LOT more to it, but that is the gist in the simplest of terms.

If you are looking for a role on an Executive Leadership Team for a Private Equity-backed company, then please join us on August 27 from 12pm - 4pm EST for a workshop on how to market yourself to Private Equity firms.

It's been a highly emotional couple of weeks that I cannot let go unacknowledged, particularly given that one of Thrive Resources’ deepest values is rooted in Diversity and all that means.

We see you, we hear you and we stand by you.

Thrive Resources CEO, Susanna Madden, participated in Strategy & Resources Executive Roundtable discussing an Industry in Transition

I recently had the opportunity to sit down and chat with one of my long-time mentors, current client, and a leading voice in private equity human capital. She is a Partner at Arsenal Capital, and her ideas in motion have helped the firm consistently achieve record returns.

In any company, you could argue that the CFO is the second most important person next to the CEO. In a private equity-backed concern, it’s even more true. The CFO not only keeps the ship sailing, but s/he also sets up and maintains all of the KPIs, the dashboard, and most importantly, manages the financial relationship with the PE owner, either fostering trust and reliability, or not. S/he also supports the CEO as his/her confidant and guidepost.

PE firms are busy and have limited time. There are too many executives and too little time. Even having the best of intentions, executive introductions start to blend together. Thinking that you are more special or different or shine brighter than the next guy has literally the opposite effect because most candidates think that about themselves.

Thrive placed a Healthcare Advisory Board Member at a client private equity firm. The new hire is the President/CEO of a 200+ physician multi-specialty medical group.

Thrive placed an Operating Partner, Financial Services at a client private equity firm. The new hire is the former CEO of a venture-backed, niche leader in financial services

Thrive placed an Operating Partner with a functional focus on portfolio company finance operations at a client private equity firm.

Thrive placed an Operating Partner with a functional focus on portfolio company revenue generation at a client private equity firm

Thrive placed the CEO of a leading service provider that designs, installs, manages, and maintains mission-critical refrigeration and HVAC systems.

Thrive assisted in placing the CEO of a leading private-equity owned manufacturer and supplier of proprietary polymers coatings and chemicals serving the textile and carpet, HI&I, consumer products and general industrial markets.

Thrive placed the CFO of a leading private-equity owned manufacturer and supplier of proprietary polymers coatings and chemicals serving the textile and carpet, HI&I, consumer products and general industrial markets.

Thrive placed the CFO of a Payment Processing portfolio company. The new hire is the former CFO of a premier gift/loyalty program provider to the small merchant market.

Thrive placed the Chief Human Resources Officer (CHRO) for a leading private equity-backed global provider of enterprise software and services that enable companies to manage and optimize their environmental, health, safety and sustainability (“EHS&S”) processes.

Thrive assisted in placing the President of a leading private equity-owned provider of software and services to corporates and non-profits.

Thrive placed the President of a Payment Processing portfolio company.

Thrive placed the GM of the Texas Division for a leading private equity-owned service provider that designs, installs, manages, and optimizes mission-critical refrigeration and HVAC systems.

Thrive placed the Executive Vice President (EVP) of Functional Food and Ingredients for the leading private-equity owned global manufacturer and supplier of food additives and ingredients serving the dairy, bakery, pet, meat, pharmaceuticals and general industrial markets. 

Thrive placed the Senior Vice President (SVP) of Operations for the leading private-equity owned global manufacturer and supplier of food additives and ingredients serving the dairy, bakery, pet, meat, pharmaceuticals and general industrial markets. 

Thrive placed a Senior Analytics Specialist at the private equity-backed global leader in machine learning science and advanced data analytics that uses a SaaS-delivered platform on which all applications are built and offers a dynamic environment with new products being developed every day.

Thrive placed the Vice President (VP) of Operations for a leading private-equity owned manufacturer and supplier of proprietary polymers coatings and chemicals serving the textile and carpet, HI&I, consumer products and general industrial markets.