Blackmore Partners Webinar - Sound Test and Introduction

Sound Test

• Participants instructed to raise hands if they can hear and see the webpage
• Participants to write in the dialogue box if there are issues

Introduction

• Speaker: Gerald Wire, Managing Director at Blackmore Partners
• Founded: 2005
• Mission: Helping executives monetize their background into fundable deals by private equity

Growth and Development

• Expanded into multiple areas over the years
• Partner on the deal side: Yelena
• Process:
  • Find executives with a strong thesis
  • Identify client targets
  • Co-invest in deals with other investors (e.g., Pine Tree Equity)
  • Executive typically runs the deal with benefits (salary, bonus, equity)

Sample Deals

1. Northwest Mailers (2009)
   • Thesis: Combine sleepy mailing houses with data analytics
   • Successful exit: 2x return
   • Bought by RR Donnelley
2. Company Kinetics with Winter Capital
   • Management buyout and purchase of two companies
   • Sold for $280 million to Golden Gate Capital
   • 8x return on investment

Blackmore Partners Roles and Trends

Partners and Services

• Mike Johnson: Board positions for private equity
  • Did 40 placements last year
  • According to Michael Reilly - ~36,000 board positions potentially available in private equity
• Sheona Zhao: Recruiting
  • 6 full-time recruiters
  • Over 160 C-suite searches last year
  • Over 100,000 potential C-level positions annually

Blackmore Connects

• Platform for executives to proactively engage in private equity
• Provides webinars, networking events, and articles
• Helps executives become known in private equity
• Focus on: Networking and education

Upcoming Conference

• Date: October 12th in Chicago
• Agenda:
  • 12pm – 4pm: Conference
  • 4pm – 7pm: One-to-one meetings
• Attendees:
  • 15+ private equity firms (aiming for 25)
  • Executives with a P&L north of $50 million

Pine Tree Equity Overview

Introduction to Pine Tree Equity

• Speakers: Roberto Canto and Jeff Satine Burrino
• Founded: January 2007
• Funds: Three funds with approx. $200 million
• Investing focus:
  • Small cap companies with $2-8 million EBITDA
  • Sectors: business services, consumer services, financial services, healthcare services
• Strategy:
  • Partner with industry executives
  • First institutional investor in companies
  • Focus on services, avoid heavy manufacturing
  • Strong filtering of opportunities (7-800 annually, 2-3 investments)

Role of Executives

• Executives are crucial for identifying investment opportunities
• Importance of spending time with potential partners pre-investment
• Types of engagements:
  • CEO roles
  • Board members
  • Consultants and advisors during due diligence and post-investment

Financial and Operational Support

• Pine Tree provides extensive financial and operational support
• Operating Partners:
  • Focus on financial improvements (accounting, cost-saving)
  • Support CEOs in building sales teams and other operational improvements
• Strategy: Ensuring executives never worry about capital needs

Additional Information and Case Studies

Private Equity Trends

• Increasing external board member involvement in private equity
• High demand for executives with a proactive approach

Case Study: Community Medical Group

• Florida-based primary care provider for Medicaid and Medicare
• Substantial growth and successful strategic sale

How to Get Noticed by Private Equity

• Develop and present a strong investment thesis
• Proactively reach out to private equity firms with concrete ideas
• Attend relevant conferences and networking events

Conclusion

• Blackmore Partners: Source for private equity executives
• Pine Tree Equity: Focused on partnering with experienced operators for robust growth
• Upcoming Blackmore Connects conferences for targeted networking

Note: For more about Pine Tree Equity's approach and case studies, participants encouraged to follow-up through Blackmore Connects.