Welcome back to The Private Equity Podcast, by Raw Selection! Today’s guest is Jon Sonnenschein, Private Equity Operating Partner and former SaaS and software CEO. Jon shares insights on driving cultural change in portfolio companies, blending his experience as a CEO and Operating Partner.

Breakdown:

[00:00] Jon Sonnenschein discusses his experience as a Private Equity Operating Partner and former SaaS CEO, focusing on cultural transformation in portfolio companies.

[00:30] From Chicago to Silicon Valley, with 20 years in startups, followed by joining private equity and leading growth at Earth Solutions.

[00:59] The "star player bias" in talent acquisition and the importance of aligning cultural dynamics.

[01:28] Addressing the balance between legacy culture and private equity-driven professionalization.

[03:21] Transitioning from founder-led to private equity-backed and retaining core cultural elements while driving professionalization and growth.

[05:18] Jon shares how he elevated long-term employees for cultural continuity while introducing professional FP&A expertise.

[06:15] Jon explains his approach to understanding a company’s culture by interviewing employees at all levels.

[07:44] The role of listening and valuing employee perspectives in identifying growth opportunities.

[09:11] Validating feedback through patterns, experiments, and data-driven approaches.

[10:57] Testing new markets through structured, accountable experiments to assess viability.

[11:56] Jon’s methods for influencing cultural change without alienating long-term employees.

[13:20] Professionalizing the product organization and using customer feedback to guide decisions.

[15:17] Transparency, one-on-ones, and open forums to drive cultural change and employee engagement.

[18:11] Creating psychological safety and fostering innovation through direct communication.

[19:38] Jon reflects on insights from being an operating partner and how they inform his executive approach.

[21:06] The importance of collaboration between operating partners, deal teams, and CEOs.

[22:28] Recommended readings include Thinking Fast and Slow by Daniel Kahneman and The Hard Thing About Hard Things by Ben Horowitz.

[24:48] Jon emphasizes the importance of tackling culture head-on and shares key takeaways for private equity professionals.

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Jon on LinkedIn here.

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com

Welcome back to The Private Equity Podcast, by Raw Selection! Today, we’re joined by Christen Paras, Partner of the Transaction Team at MiddleGround Capital, to explore innovative exit strategies and how MiddleGround is redefining Private Equity practices.

Breakdown:

[00:03] Christen Paras returns to discuss MiddleGround’s unique exit strategy approach.

[00:30] Partner at MiddleGround Capital, based in New York City, leading the transaction team.

[00:59] Private Equity firms often lack adaptability—Christen emphasizes innovation and agility.

[01:26] MiddleGround’s infrastructure, a KPI-driven, collaborative culture for scalable, efficient decision-making.

[03:14] Weekly and quarterly meetings ensure team bandwidth and tackle key challenges.

[04:32] A dedicated team builds repeatable processes for optimal outcomes.

[05:29] Integrating transaction and operations expertise for seamless exits.

[06:55] Ensuring readiness and alignment throughout portfolio lifecycles.

[07:50] Aligning value creation with buyer expectations to maximize appeal.

[10:14] Identifying detractors and enhancing portfolio company readiness.

[13:25] Prioritizing actions that align with exit goals and maximize value.

[15:37] Process mapping and standardization for exit preparation.

[17:03] Metrics-driven timing and customized strategies for individual companies.

[21:16] How exit teams enhance focus and drive superior results.

[24:30] Co-investor and lender insights refine exit strategies.

[25:27] Industry updates, reports, and relationship-driven knowledge.

[26:53] Christen reflects on MiddleGround’s approach and her career journey.

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Christen on LinkedIn here.

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com

Welcome back to the Private Equity Podcast by Raw Selection! Joining me today is Brad Armstrong, Partner at Lovell Minnick, a Private Equity firm celebrating its 25th anniversary. Brad shares insights into value creation, forecasting for 2025, the importance of sticking to your core strengths, and how simplicity done right can drive Private Equity success.

Breakdown:

[00:00] Sticking to fundamentals, value creation, and staying disciplined in private equity.

[00:30] Brad's career journey, Lovell Minnick’s 25-year strategy, and their focus on financial services, business services, and fintech.

[01:54] The biggest mistake in private equity: failing to decouple capital raising from capital deployment. Why sticking to your strengths and staying disciplined is key.

[04:40] “Right to win”: Identifying where you have an edge and staying competitive in a mature private equity market.

[06:05] How Brad entered private equity, blending operating, investment banking, and PE experience.

[08:58] Trends in financial services and fintech: digital transformation, technology enablement, and specialized outsourcing driven by regulation.

[11:46] How Lovell Minnick stays consistent: an “all-weather” strategy, controllable outcomes, and avoiding macroeconomic dependency.

[14:09] Lovell Minnick’s approach to value creation: custom plans, operating partners, and functional specialists supporting portfolio growth.

[16:29] Playbooks and best practices: how Lovell Minnick documents and shares successes across portfolio companies.

[17:54] Portfolio collaboration: peer-to-peer teaching, executive summits, and solving challenges together, from cybersecurity to sales infrastructure.

[22:08] Forecast for 2025: Brad’s take on market clarity, improving fundraising, and a constructive deal-making environment.

[25:53] Brad’s influences: books like Six Types of Working Genius, Scary Smart (AI), and Outlive by Peter Attia.

[27:46] Closing thoughts and gratitude to the audience for record-breaking downloads.

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Brad on LinkedIn here.

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com