Lecture Notes: Michelle's Journey into Private Equity

Introduction

• Michelle shared her career history
• Started in Corporate America at Intel in finance
• Transitioned to general management, product, and sales over 26 years
• After a corporate reorganization, moved to consulting and then startups

Reason for Transition to Private Equity

• Startups are unpredictable (e.g., COVID-19, SVB crisis)
• Challenges with personal cash investment, funding cycle, and unreliable talent
• Desire to use skills in a more stable, established company

Getting into Private Equity

• Initial attempts to apply for PE jobs unsuccessful
• Applicant systems screened out non-PE experience
• Discovered Blackmore Partners

Blackmore Partners Model

• CEO-centric approach
• Focus on individual passions, strengths, and skills
• Develop deal thesis and match with funding partners
• Long-term commitment for gaining valuable skills

Blackmore Structures and Events

• Educating executives, recruiting, and virtual events
• Regular virtual conferences facilitating introductions between PE firms and executives
• Value in networking and learning from diverse executive backgrounds

Mindset for Success in Private Equity

• Strong desire, faith, and persistence
• Commitment to the process and willingness to invest in oneself
• Building skills and handling risks and rejections
• Regular outreach and networking

Michelle’s Actions and Strategies

• Joined ACG (Association for Corporate Growth)
• Attended DealMax national conference
• Built a network of PE firms, investment banks, law firms, advisors, and more
• Developed multiple deal theses and iterating on feedback

Developing a Deal Thesis

• A creative exercise to open doors and gain feedback
• Important to have several focused deal theses related to areas of expertise
• Continuous learning and adaptation

Funnel of Opportunities

• Need for a large network and continuous outreach
• PE firms have limited staff and significant deal flow
• Building a robust network of 200+ relevant firms

CEO Role and Growth Strategies

• Started as CEO of a lower middle market company
• Focus on strategic growth and organic development
• Role of sales and marketing in scaling the business
• Need for metrics and methodical quarter-by-quarter growth

Investor-Operator Mindset

• Emphasizing future exit value and achieving targeted growth
• Focus on reoccurrence and sustainability of revenue
• Preparing and planning diligently for the private equity landscape

Importance of Self-Investment

• Investing in one’s own development and skills
• Leveraging tools like Pitchbook through Blackmore's premium services
• Belief in one's strengths and consistent self-improvement

Conclusion

• Blackmore’s industry-agnostic and supportive model differentiates it
• Continuous learning, networking, and mindset for success
• Building an adaptable and forward-focused career in private equity