Winning the Private Equity Game Webinar

Jul 2, 2024

Winning the Private Equity Game Webinar

Introduction

  • Presenter: Gerald OWI, Managing Director of Blackmore Partners
  • Webinar Focus: Introduction to private equity and strategies for success
  • Number of Slides: Over 100 slides (detailed slideshow available upon request)

Blackmore Partners Overview

Founded: 2006 Deals: Over 100 private equity deals Founders: Tom Turpin and Val Capital

Objective

Aim: Help executives gain positions in private equity (board positions, consulting, running portfolio companies) Key Knowledge Areas: Understanding private equity thought processes, values, and attention-grabbing strategies

Founding Story of Blackmore Partners

  1. Origin: Founded accidentally by Tom Turpin of Val Capital
  2. Previous Work: Gerald was in consulting with Fusion Group (Fortune 2000 companies)
  3. Transition: Six executives wanted to move from corporate roles to private equity in 2005

Initial Challenges

  • Connections: Gerald knew 200-250 private equity firms, now over 8,000 globally
  • Expectations vs Reality: Corporate clients frequently inquired about talents, private equity interested only in deal opportunities
  • Hesitation: Initial reluctance to introduce executives to private equity due to mismatch in expectations
  • Resolution: Transition from offering executive placements to focusing on executive deals

Elements of Success

Key Strategy: Packaging executive resumes and forwarding them to private equity contacts

  • Received cooperation from Tom Turpin, resulting in a strategic pivot

Insights from Tom Turpin

  • Typical PE Approach: Short timeframes, extensive vetting of executives, reliance on prior successful execs (internal rolodex)
  • Problem: Inundation with executive approaches (~2500 per year) without deal opportunities
  • Proposed Solution: Gerald to create educational product/service to teach executives to present deals, facilitating introductions
  • Focus: Educate executives on the private equity mindset and help them package deals

Private Equity Operational Realities

  1. Deal Volumes: Firms typically conduct 0-2 deals/year, reviewing 300-500 opportunities
  2. Close Ratios: Very low, necessitating high volume deal reviews
  3. Overall Industry Norms: Diverse criteria across 1,800 private equity firms

Strategy Development by Blackmore

  1. Educational Initiative: Focus on training executives to generate deals
  2. New Line of Business: Focused on identifying and presenting deal opportunities, leading to high payouts
  3. Executive/Intermediary Role: Blackmore became a critical intermediary and educator in the private equity space
  4. Expanded Network: Initially 200+ firms, now 1,500 firms globally

Key Processes and Programs

  1. Deal Identification: Gerald’s network, company database, brokers, and acquisition advisors
  2. Support Systems: Professional guided processes to minimize executive’s time and maximize opportunities
  3. Commitment: 10-20 hours weekly commitment over 12-24 months to build relationships and present deals

Programs and Prospects

  1. Backable Exec Program: Aimed at senior executives ready for CEO roles with $100M+ experiences
  2. Advisory Role: For executives looking for board positions or other roles via deal introductions

Market and Economic Context

  1. Market Timing: Current favorable conditions due to tax structures and economic factors
  2. Target Companies: Revenue/EBITDA thresholds, baby boomer-owned businesses, undervalued opportunities

Deal Structuring and Financials

  1. Equity Stakes: Configuring executive equity stakes, providing lucrative payouts
  2. Model Examples: Detailed examples showcasing potential financial outcomes for executives in deals

Value Creation in Private Equity

  1. Historical Phases: From financial engineering to operational improvements and hybrid models
  2. Tactics: Focusing on recruiting top talent, operational improvements, and aggressive growth strategies

Conclusion

  1. Key Takeaway: Deals are the gateway to private equity success for executives
  2. Action Steps: Interested executives to contact Gerald for detailed slides and further steps
  3. Future Commitment: Gerald available for follow-ups after the 16th due to travel commitments in Asia
  • Contact Information: Provided at the end of the webinar upon request