At the core of every business either owned by or being evaluated by Private Equity is technology. Yet many in the Private Equity world don't have a grasp on the magnitude of impact that technology can have on their investments. The Private Equity Technology Podcast will explore the inner workings of the technology applications and people running your potential acquisitions or portfolio companies, providing you another lever to pull as you look to maximize returns. #privateequity #tech
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We're back with another episode on the state of Tech Due Diligence. This time we're joined by Dan Bender and Lukas Ingelheim, founding partners of Berlin-headquartered Code & Co, who perform Tech Due Diligence around the world. We cover some basics of tech due diligence for those of you unfamiliar, discuss the differences between US and European te…
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In private equity, it is becoming widely recognized that technology-enabled growth and innovation within portfolio companies is a major spur to productivity and value creation. The mechanisms through which technology is developed, adopted and used in production are complex. How are private equity firms handling the evaluation of technology-enabled …
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Triton Partners, the large European private equity firm, has long understood that optimizing the technologies that run its portfolio companies can bring meaningful value to its investments. Anders Thulin joined Triton 6 years ago as its head of the firm's digital & technology practice. He and his team are engaged in due diligence as well as executi…
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Episode 52 - West Monroe Data Diligence with Doug Laney
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Our guest this episode is Doug Laney, Data & Analytics Innovation Fellow at West Monroe and author of "Infonomics: How to Monetize, Manage, and Measure Information as an Asset for Competitive Advantage". Doug discusses why "Data Diligence" should be added to your ever-growing list of diligences and opportunities for monetizing the data that exists …
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Episode 51 - Incline Equity Partners
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Having technology experience and leadership within Private Equity firms is becoming increasingly critical – people with the resilience, speed and partnering skills necessary to drive growth by leveraging technology. Incline Equity Partners provides a glimpse into it has chose to tackle this challenge. Our bet is that PE firms start to look more and…
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Episode 50 - Alice Murray - The Drawdown
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We invited Alice Murray, Editor at The Drawdown, to discuss her recent article "Great Techspectations", critical observations on Private Equity’s technology upgrade since the pandemic catalyzed upgrade plans. Alice shares sharp insights on not only technology but also on a much deeper theme of employee well-being and the criticality of ‘G’ in ESG.…
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Episode 49 - Data quality and accuracy within Private Equity firms
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For the first time, we turn our attention to the data quality and accuracy *within* Private Equity firms. Ian Rubenstein, CEO at Exchangelodge, talks us through the state of data within PE firms and where the industry needs to go next to provide timely, accurate, and actionable data for both LPs and portfolio company decision making.Linkshttps://ww…
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If your portfolio company builds software applications, whether as its core business or in support of its core business, the speed and quality of delivering that software can have a major impact on the success of the business. Dev Ops is a collaboration between software development, operations, and other teams, collectively tasked with achieving co…
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Rant - Get Microsoft, Amazon, and/or Google on the Phone...Now
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A quick rant on how you, as a private equity firm, need to be engaging Microsoft, Amazon, and/or Google to help drive meaningful cost savings across your portfolio companies through the optimization and scale opportunities they provide.Autor: Alex Agran
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Episode 47 - Microsoft on how it helps your PE investments
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One of the most important things you learn in Private Equity is to work with partners to achieve the investment thesis. To this end, a strategic partnership with Microsoft can be pivotal to saving time and money, and enabling growth.Into the pod comes Microsoft's Casey McGee, VP of ISV Partner Sales. We discuss how Microsoft supports Private Equity…
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Differentiated facts and insights enable better decision making. Gartner insights support Private Equity investors in making key decisions throughout the investment life cycle. Today we speak with David Smith, Vice President Analyst and Gartner Fellow Emeritus at Gartner. David is part of the Enterprise Architecture and Technology Innovation team w…
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Episode 45 - Cloud Cost Optimization with Rackspace
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Whether you're in charge of cloud expenditures at a company or you're invested in one or many companies with significant cloud spend, you're going to want to pay attention to this episode. Rackspace, the well-known hosting-provider-turned-multicloud-solutions-provider, sent in Justin Chris-Tensen and Jeff DeVerter to talk about how they help their …
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Mike Bestvina and Sean Lyons of Renna Partners are two of my favorite tech guys in the private equity realm. Always insightful and current with how technology is shaping investing and operating.Mike: https://www.linkedin.com/in/mikebestvina/Sean: https://www.linkedin.com/in/sean-p-lyons-2319653/Renna Partners: https://rennapartners.com/…
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HGGC, a middle-market private equity firm based in Palo Alto, California, has seen significant benefits of technology as a disruptor or enabler in traditional industrial or service-based businesses. Les Brown, an HGGC Partner, discusses the how the firm leverages technology, from diligence to inception to exit. Moving companies from the industrial …
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Episode 42 - The Digital Operating Partner
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There's a newish type of operating partner in town: the digital operating partner. Bruce Sinclair, author of The Digital Operating Partner: Using Digital Transformation for Value Creation, drops by to talk about his expectations for the role, namely that a Digital Operating Partner should be driving massive improvements to enterprise value.Links an…
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Episode 41 - SAP's Global Head of Private Equity
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As the global pandemic continues to fundamentally change the way we live and work, it has forced every PE firm to take difficult decisions. In this talk, Sean Epstein, SVP and Global Head of Private Equity at SAP, shares his experience on how PE clients have faced these challenges with a very pragmatic and human approach to leveraging technology. L…
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Episode 40 - Technology Teams and Software from a PE-backed CTO
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Iain Bishop, a long-time CTO at PE-backed companies, joins us to discuss key areas for evaluation when due diligencing technology teams, what differentiates software companies, current trends in software development, and the tech talent landscape.Iain Bishop https://www.linkedin.com/in/iain-bishop-429421This show was co-hosted with Lisa Weaver-Lamb…
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Episode 39 - Cost Optimization with Crosslake
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Russ Albright and Erik Larson of Crosslake Technologies join Alex and Lisa to talk through 5 cost optimization strategies for your portfolio companies' IT function. While the discussion is perhaps more relevant than ever, the topic is one that should always be on the minds of operating partners and portfolio company leadership.Crosslake is a techno…
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Episode 38 - A Chat Amongst Ourselves
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Hosts Alex Agran and Lisa Weaver-Lambert catch up on what they've been seeing, hearing, and experiencing in the US and UK, respectively, since since being sheltered in place due to the SARS-CoV-2.Autor: Alex Agran
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Episode 37 - Riccardo Basile, Permira, Portfolio Group
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More firms are increasingly taking a proactive approach to how they integrate and plan technology across their portfolio to drive value. Riccardo Basile, Principal at Permira in the portfolio group, takes us through how to think about technology during due diligence through to the investments themselves. He covers the different approaches according…
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Episode 36 - The State Of Hiring Tech Talent
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Few would debate the importance of technology talent, however its importance in successfully executing growth transformation of a portfolio company is sometimes underappreciated. Acquiring top talent can yield double-digit investment savings by accelerating the transformation process by even 20 to 30%. Of course, such talent is hard to find. We sit…
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We get back to the basics in this episode to deliver an understanding of data and databases. If you're looking for a quick primer that will help contextualize conversations you're having with targets or portfolio companies regarding data, then listen in.Naveed Asem, Chief Data and Analytics Officer of Donnelley Financial Solutions (DFIN), has devot…
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There’s a lot of excitement about the potential value of artificial intelligence. And we are hearing a great deal about exciting demos in a variety of sectors. However, we are also in a phase where a lot of PE firms are somewhat skeptical as to whether or not it can actually help them. How do firms evaluate the opportunities and limitations? How be…
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Episode 33 - The Digital Transformation Payoff
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“Investors should talk about their digital investments more and sooner,” advises Suraj Srinivasan, Professor at Harvard Business School, who joins us to discuss his recent article titled ‘Investors Reward Companies That Talk Up Their Digital Initiatives." Public companies talking about their digital investments on quarterly investment calls has gro…
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Episode 32 - The Importance Of Pricing
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Despite evidence that pricing is the most critical predictor of profitability, the science of pricing is still relatively underdeveloped for most portfolio companies, and few have optimized their pricing to maximize profits. Pricing is therefore often one of the first levers Private Equity firms should be looking to look to optimize – gaining contr…
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"We are at a moment of time. Humans and machines are coming together in an unprecedented way – I caution those that resist this change.” Sajjad Jaffer, Two Six CapitalTwo Six Capital was founded on two simple realizations: the Private Equity industry had predominantly focused on returns by cutting costs and leveraging up assets, and there had been …
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Episode 30 - Website Visitor Conversion
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Most business sectors are feeling the challenges of cannibalization in B2B and B2C e-commerce sales scenarios, with tightening profit margins and the growth of direct e-commerce brands. Investments in developing e-commerce brands are costly and much of the focus is placed on acquiring customers, as digital has changed how companies compete for thei…
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As private equity firms continue to look to technology as a way of creating growth, the market for operating partners that know technology is picking up. PE firms need pre-investment tech due diligence. During the hold period, they need creative technology solutions and execution of those solutions. And when preparing for sale, they need to maximiz…
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Episode 28 - Data Science with Jike Chong
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Data science already is, or will be, a key factor in the success of your investing. In this episode of The Private Equity Technology Podcast, we spoke with Jike Chong, Chief Data Scientist at Acorns, a startup focused on building tools for micro-investing. Jike joined to set the record straight on what data science actually is and where you can be …
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Episode 27 - Discussing Data With Lisa Weaver-Lambert
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For good reason, there’s a lot of interest about the potential value that an be unlocked from data. Many Private Equity companies are now asking what should our data strategy be, what should our analytics strategy be, and what should our AI strategy be? Alex Agran discusses data with digital and commercial strategy specialist Lisa Weaver-Lambert. T…
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Episode 26 - West Monroe Partners On Cybersecurity
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Brad Haller and Paul Cotter of West Monroe Partners, a household name in IT diligence, join me on this episode. We get into one increasingly important aspect within IT diligence, namely cybersecurity diligence. Securing your company’s data has become a vital aspect of running a business. There are serious costs in failing to secure that data. How d…
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Episode 25 - Kinzie Capital Partners
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So excited to finally be able to tell the story of Chicago-based Kinzie Capital Partners!Kinzie has an investment thesis that you'll hear from many other private equity firms, targeting lower middle market companies amidst transition in the consumer, manufacturing and services industries. But Kinzie is profoundly different in that it believes that …
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Great episode here (though the audio quality isn't). You're undoubtedly hearing a lot about the virtues and benefits of the cloud when it comes to the software running potential acquisitions or portfolio companies. How do you make sense of all of it? In this concise 30-minute overview, Steve Holstad, Director at Perficient, provides a layperson's u…
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Hiring the right tech executives to run your portfolio companies is a serious challenge. Alex Rawlings, of UK-based Raw Selection, dials in from across the pond with strategies and tips on how to find what you're looking for.Autor: Alex Agran
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Episode 22 - Private Equity IT Trends
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Renna Partners' Mike Bestvina dropped in to talk current private equity market IT trends and going ons. We cover two primary topics. First, that the game is just starting when it comes to private equity firms teaming up with IT service firms and strategic advisors in a premeditated way (think Apax buying ThoughtWorks, think Kinzie Capital partnerin…
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A Rant: Hire Portfolio Company CIOs With Software Backgrounds
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Hardware, networking, infrastructure. These are commodities. Easily outsourced. Competitive advantages and efficiencies are gained via software. When your private equity firm prepares to execute its vision with a new portfolio company, I highly recommend a technology leader with a software background.…
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Episode 20 - Talking Innovation Strategy With McDonald's Innovation Guru Wayne Montague
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Before you get to taking on big technology initiatives, you need to have a definitive understanding of your core business: what are the markets you serve, who are your customers, etc. You need to make sure that you’re designing technology solutions to fit the core business needs. How do you do this? Wayne Montague, the man who started and ran McDon…
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A Rant: You're Not Too Late. In Fact, You're Still Early!
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It's not too late to get serious about how your private equity firm approaches the evaluation of technology's potential at targets and portfolio companies. The industry has been slow moving. Get started now!Autor: Alex Agran
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A Rant: Dear Associates, You Have An Incredible Opportunity To Make An Impact
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Dear Private Equity Associates - You have an enormous opportunity to add value at your respective firms: go deep on understanding the technology both pre- and post-acquisition. Your bosses and bosses' bosses most likely don't have the time to get into it. Every company is run on technology. The more you understand about it, the more impact you can …
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Episode 17 - Managing The Rollout Of Large Technological Change
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Rightfully, more and more attention is being paid to how a portfolio company's operations and culture are affected by large changes to the technology that runs the business. When there are meaningful technological changes, it pays to not only consider how those changes will impact a company and its culture, but to put a plan in place to address and…
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A Rant: if(CFO == CTO) { alert(“That’s risky business!”); }
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A number of small-to-medium sized businesses assign technology decision making to their CFOs. This is unfortunate. Technology is an essential component of every business today and creates competitive advantages. Most CFOs have no background in implementing and building technology and therefore lack important context from which strategic technology …
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Episode 15 - Goodnight RFP, Hello RSS
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Traditional RFIs and RFPs are painful experiences for both buyer and vendor. They're inefficient and often do a poor job of 1) conveying the actual business needs; and 2) vetting vendors. David Carlson, of Halsted Partners, has been on both sides of the traditional processes. Today, he bucks those traditions and deploys a process he calls Rapid Sof…
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Episode 14 - More About User Experience and Interface Design
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If you haven't already figured, I am all in on the importance of user experience and interface design in enterprise software. If you’re creating enterprise software, you’re going to need a proper user experience and interface design. Traditional design firms are good for some things, but their traditional approach design isn't right for enterprise …
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You absolutely cannot ignore The Law when it comes to the software running your portfolio companies. You need to be aware in both pre-acquisition diligence and post-close situations of how contracts are structured and more importantly, what software is yours versus what is licensed (teaser: beware of open source). Tim Nelson, of law firm Aronberg G…
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Episode 12 - Hiring Software Developers
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If you're building custom software at your portfolio companies, you're going to need a team of software developers with modern stack credentials and experience. Finding and hiring the right developers for the job is a tall order. Colleagues Kristen Byrne and Rob Paulson pop in to drop some tips and tricks that will improve your chances of finding t…
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A Rant - KKR (very, very indirectly) Acknowledges Base Theory
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Last week, a quote attributed to KKR's Anne Arlinghaus from the Ernst & Young Strategic Growth Forum hit Twitter and made my year!Autor: Alex Agran
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Software testing. Perhaps the most underrated component of the software development life cycle. Perhaps the most likely to be impacted by scope creep. Perhaps an aspect of the software development process that you should pay more attention to. John Frank joins me again to talk you through what it takes for your portfolio companies to properly test …
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Episode 9 - Agile Software Development
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Agile. One of my favorite overused and not always understood phrases in the tech world. Why, as a private equity investor, should you care about what Agile is? Chances are that Agile is being used to develop software at your portfolio companies. Understanding enough about Agile will allow you to ask the right questions and make sure the right check…
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A Question: Do You Have Tech Expertise With You on Monthly Ops Calls and Quarterly Board Meetings?
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This has been on my mind since last episode: Do you have tech expertise with you on monthly ops calls and quarterly board meetings? If not, why not?Autor: Alex Agran
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Episode 7 - Svoboda Capital Partners - Jeff Piper
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This was a fire conversation with Jeff Piper, Managing Director, Svoboda Capital Partners. Tons of insight directly from the mouth of a private equity firm as it relates to tech decisions going on at portfolio companies. Jeff was even kind enough to drop a legitimate business opportunity into the laps of any IT due diligence firms listening. I love…
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