Private Equity Deals with Capital Allocators

Striking Oil – CrownRock by Lime Rock Capital (S3.EP.11) Jan 20, 2025

When you think of the greatest private equity deals of all time, names like Google, Facebook, Uber, Dell, and Hilton come to mind. After a recent episode of Private Equity Deals, you might also think about 3G’s acquisition of Burger King.

But I’d bet you wouldn’t think about an oil and gas play called CrownRock. Lime Rock Capital created CrownRock alongside a management team with $96.5 million of cash and assets in 2007. Seventeen years later, sold the business to Occidental Petroleum for $12.5 billion.

Lime Rock’s original investment made 79x its money, a net IRR of 18%, and $7.5 billion in gains, which ranks in the top ten fully exited private equity deals of all time. It also exited a continuation vehicle that generated 3x its cost over the last six years of the deal’s life.

My guests to discuss the firm and its grand slam CrownRock deal are Lime Rock Managing Directors John Reynolds, Jonathan Farber, and J McLane.

Our conversation covers Lime Rock’s investment approach and the example of CrownRock. We dive into the initial investment thesis around vertical drilling, the three extinction threats to the business, innovation of horizontal drilling, management excellence, exit options along the way, and the ‘forever hold’ mindset that allowed CrownRock to compound extraordinary amounts of capital.

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Asset Management Consolidation - Simon Krinsky, Hall Capital and Tim McCusker, NEPC (S3.EP.10) Dec 09, 2024

Consolidation in asset management is one of the industry's most important trends. When any industry enters a mature phase, consolidation brings the benefits of economies of scale, product depth, and broader services to meet client demands. We’ve seen a rising tide of merger activity in recent years, effecting both asset managers and allocators alike.

My guests on today’s show are leaders of two organizations that announced mergers in October – Simon Krinsky, a Managing Partner at Hall Capital and Tim McCusker, CIO at NEPC. Hall announced a merger with Pathstone, adding its $45 billion in assets to Pathstone’s $100 billion. NEPC announced a sale of a majority stake in its firm to Hightower Holdings, adding NEPC’s $1.8 trillion of assets under advisement to Hightower’s $130 billion of assets under management. Both Hall and NEPC have been longstanding independent organizations that are selling to a partner backed by private equity owners.

Simon and Tim walk through their rationale for the transactions, deal process from idea to signing, and opportunities and challenges going forward. The organizations share similarities in their long independent history, broad equity ownership, and investment capability, while also having significant differences in their new partners, incentive structure, and plan to service clients. Together, Simon and Tim offer an inside look at dealmaking in asset management.

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Classic Deal - Burger King by 3G Capital (S3.EP.09) May 06, 2024

3G Capital’s buyout of Burger King may be the most successful private equity deal you’ve never heard about. Over the last fourteen years, or the length of a typical private equity fund, 3G turned a $1 billion investment into $28 billion in value. The annual dividends from the investment accruing to 3G today are around 70% of its invested capital. The deal is one of the highest earning buyouts ever.

3G is an organization with a storied history. Founded by Jorge Paolo Lemann, Carlos Alberto Sicupira, and Marcel Herrmann Telles, the group created an owner-operator model of investing. They rose to prominence through building the largest beer company in the world, initially buying local brewer Brahma in 1989, expanding it and merging with a competitor to become AmBev in 1999, merging with Interbrew to become ImBev in 2004, and taking over Anheuser Busch in 2008 to become AB InBev.

Twenty years ago, Alex Behring, a young star on their team, moved to the US to form 3G Capital and take the approach abroad.

Burger King was the second largest hamburger fast food chain after McDonalds in 2010 when 3G took it private. What it accomplished since then has been extraordinary.

My guests to discuss 3G and the deal are Alex Behring and Daniel Schwartz. Co-Managing Partners of 3G Capital.

Our conversation covers the history of 3G, Alex's journey to form 3G Capital, and the 3G playbook. We then dive into the deal, covering the sourcing and deal dynamics, improving operations, growing the business, taking the company public unexpectedly, and reloading to buy Tim Horton’s, Popeye’s, and Firehouse Subs. Today’s Burger King is part of Restaurant Brands International (QSR), a public company with a $32 billion market cap and $50 billion enterprise value.

This classic deal will widen your aperture on what’s possible with a long-term, compounding holding period and operational excellence.

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DealCloud – Ben Harrison (DealCloud), (S3. Sponsored Insight) Dec 20, 2023

This Sponsored Insight features Ben Harrison, Founder and Co-President of DealCloud, our sponsor for Season 3 of Private Equity Deals.

Ben discusses how DealCloud’s vertical software supports alternative investment professionals through deal sourcing, relationship and pipeline management, and workflow efficiencies.

We are incredibly grateful of DealCloud for sponsoring Private Equity Deals, and we are eager to highlight their value to the alternative investment community.

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Ironclad Environmental Services – Chris and Rob Michalik (Kinderhook Industries), (S3.EP.08) Dec 13, 2023

On episode eight of season three of Private Equity Deals, Chris and Rob Michalik discuss Kinderhook Industries’ investment in Ironclad Environmental Services.

Chris and Rob are twin brothers and co-founders of Kinderhook, a twenty-year-old private equity firm that manages $5 billion specializing in middle-market businesses across healthcare services, environmental services, and automotive/light manufacturing.

Ironclad Environmental Services is a leading provider of logistics-based solutions focused on the containment of industrial waste. It has 50 branches and a fleet of 29,000 specialized rental assets that store, separate, and transport liquid and solid industrial waste.

Our conversation covers Kinderhook’s identification, due diligence, and negotiation of the deal. We discuss a significant early add-on acquisition, progress-to-date, and the future of Ironclad.

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Hometown Food Company – Henk Hartong III (Brynwood Partners), (S3.EP.07) Nov 29, 2023

Henk Hartong III is the Chairman and CEO of Brynwood Partners, a middle-market private equity firm that invests in U.S. consumer-oriented businesses, primarily in the food, beverage, and personal care sectors. Henk’s father established Brynwood in 1984, and the firm boasts an impressive forty-year track record of driving results through its hands-on operating expertise.

Hometown Food Company is a manufacturer and marketer of an iconic portfolio of American baking brands that includes Pillsbury, Funfetti, Hungry Jack, Martha White, White Lily, Jim Dandy, Arrowhead Mills, Sunspire, De Wafelbakkers, and Birch Benders.

Our conversation covers the creation of Hometown in 2018 through a carve-out from Smuckers, buildout of a new management team, systems, and supply chain, management of the business through the COVID pandemic, tuck-in acquisitions, and the resulting performance of the company.

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Silvus – Rich Caputo and Erik Fagan (The Jordan Company), (S3.EP.06) Nov 15, 2023

Rich Caputo is the Chairman and Chief Executive Partner and Erik Fagan the Co-Head of Diversified Industrials at The Jordan Company, a private equity firm founded in 1982 by Jay Jordan that manages $23 billion.

Silvus develops and manufactures mobile communications datalinks primarily used in law enforcement, unmanned systems, tactical, and other applications to facilitate data communication in harsh environments without needing fixed infrastructure.

Our conversation covers the sourcing, diligence, purchase of Silvus, work with the management team, special characteristics of culture, and lessons learned.

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TreviPay – Ignacio Jayanti (Corsair Capital), (S3.EP.05) Nov 01, 2023

Ignacio Jayanti is the CEO of Corsair, a $10 billion specialist in financial services and infrastructure investing that started as a private equity practice within JP Morgan three decades ago.

TreviPay is a global payments and invoicing network that enables businesses to transact in a reliable way with other businesses.

Our conversation covers Corsair’s target companies, sourcing of TreviPay inside World Fuel Services, diligence process, exclusivity period, valuation, and risk assessment. We then turn to post-close operations, including building and onboarding a team alongside the existing superstar CEO, managing the balance sheet, transitioning from the former parent, and the early performance and challenges of the deal.

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Univista – David Perez (Avance Investment Management), (S3.EP.04) Oct 18, 2023

David Perez is the Co-Founder and Managing Partner at Avance Investment Management, a middle-market private equity firm focusing on U.S. services and consumer businesses that he launched with a billion-dollar first time fund after spinning out of Palladium Equity Partners in 2020.

Univista Insurance is a South Florida-based insurance agency offering auto, home, life, health, and commercial policies primarily to the Hispanic community that was founded and run by Cuban immigrants in 2006.

Our conversation covers Univista’s history and business, sourcing of the deal, opportunities and risks, and deal process. We discuss valuation and financing, drivers of the business post-acquisition, and exit strategy down the road.

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Milk Specialties Global – Michael Fisch (American Securities), (S3.EP.03) Oct 04, 2023

Michael Fisch is the founder and CEO of American Securities, a private equity firm founded in 1994 that manages $27 billion focusing on U.S. middle market companies.

Milk Specialties is a producer of dairy products for the health and wellness, sports, and functional food industries. With roots dating back to 1944, the company focuses on Whey products and ingredients that end up in recognizable brands.

Our conversation covers American Securities approach to investing, Milk Specialties market niche, and the diligence and deal process. We turn to the gameplan for the business alongside existing management, growth drivers, and risk mitigation. We then go full circle discussing the sale process to exit the investment, covering the timing, auction, and case against continuation funds.

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Rockefeller Capital Management – Greg Fleming (Rockefeller Capital Management), (S3.EP.02) Sep 20, 2023

Greg Fleming is the CEO of Rockefeller Capital Management, a business he created alongside the Rockefeller family and Viking Global Investors with the purchase of Rockefeller & Co. in 2018. He was a guest describing his background and the early years of RCM on Capital Allocators, and that conversation is replayed in the feed.

Rockefeller Capital Management is a platform that encompasses private wealth management, strategic advisory, and asset management formed out of the former family office of the Rockefeller family that today advises on over $100 billion in assets.

Our conversation covers Greg’s vision for Rockefeller Capital, the deal to purchase Rockefeller & Co, tuck-in acquisitions of private wealth managers, development of strategic advisory, and refining of the asset management business. We discuss the tuck-in acquisition process, including sourcing, diligence, deal structure, and integration, and the technology and operations required to make it work. We close discussing the recent recapitalization of RCM by the Desmarais family and Greg’s aspirations for the next five years.

For full show notes, visit the episode webpage here.

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[REPLAY] Greg Fleming – Building and Running Rockefeller Capital Management (Capital Allocators, EP.125) Sep 20, 2023

Greg Fleming is the founding CEO of Rockefeller Capital Management, where he took the helm of a storied family office in 2018 to build and serve other families and institutions as well. Prior to taking on this challenge, Greg was the President of Morgan Stanley Wealth Management and Morgan Stanley Investment Management and before that spent seventeen years at Merrill Lynch, culminating in serving as President and Chief Operating Officer from 2007-2009.

Our conversation walks through some of Greg’s career path, including highlights from the financial crisis, and the Rockefeller Capital Management business and strategy. We hit on ESG investing, serving clients, and leadership. And I couldn’t help asking Greg about his relationship with Yankee great Derek Jeter.

For full show notes, visit the episode webpage here.

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TigerRisk – Chris Ackerman (Flexpoint Ford), (S3.EP.01) Sep 06, 2023

Chris Ackerman is a Managing Director at Flexpoint Ford, a Chicago-based private equity firm founded in 2005 that manages $7.5 billion targeting investments in the healthcare and financial services sectors.

TigerRisk is an independent reinsurance broker and capital advisory firm founded in 2008. The company was founder and employee-owned at the time of Flexpoint Ford’s investment and had grown to become the fourth-largest reinsurance broker in the world, sitting below the big three of Aon, Marsh McClennan’s Guy Carpenter, and Willis Re.

Our conversation covers the history of TigerRisk and its differentiation as a preferred alternative to the big three. We discuss Flexpoint’s sourcing of the deal, perceived investment opportunity and risk, and Covid disruption to the deal process. We turn to the business performance, culture as a competitive advantage, alignment of incentives, unexpected sale, and lessons learned.

For full show notes, visit the episode webpage here.

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Classic Deal: HCA – Chris Gordon, Bain Capital Aug 28, 2023

Next week, we’ll release the first episode of Season 3 of Private Equity Deals, this time focusing on deals in the middle market.

As an interlude between Season 2 and 3, this week’s show is a classic – it’s Bain Capital and KKR’s take private of Hospital Corporation of America (HCA) in 2006. The $33 billion club deal was the largest private equity transaction in history at the time and was significantly larger than any deal since KKR’s famous run at RJR Nabisco in the late 1980s. The HCA deal showed the private equity industry the scale of what was possible and set the stage for both mega buyouts and public to private deals ever since.

My guest is Chris Gordon, a Partner and Co-Head of Private Equity in North America for Bain Capital. Bain Capital today is one of the world’s largest private, multi-asset investing firms that oversees over $165 billion in assets. Seventeen years ago, Chris was a younger member of Bain Capital’s HCA deal team.

HCA is one of the nation’s leading healthcare services providers, with over 182 hospitals and 2,300 sites of care in 20 states and the United Kingdom. Its origins date back to 1968 when it was one of the first hospital companies in the United States.

Our conversation covers HCA’s history, the private equity environment in the mid-2000s, and the impetus for the HCA buyout. We discuss the complexity of navigating a large-scale transaction, conducting due diligence discretely, navigating the financial crisis, and what happened to the company. We turn to HCA’s return to the public markets through an IPO in 2011, Bain Capital’s eventual exit of the investment, and the implications of the deal on the firm and industry.

For full show notes, visit the episode webpage here.

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Breitling – Andreas Holzmueller and Luke Chapman (Partners Group), (S2.EP.08) Jun 14, 2023

Andreas Holzmueller and Luke Chapman represent Partners Group, an investment firm that canvasses buyouts, real estate, infrastructure, and private credit with $135 billion under management, $71 billion of which is in private equity.

Breitling is one of the leading Swiss watchmakers, founded in 1884 as a pioneer in aviation-focused technology, and which today, is positioned as a casual, inclusive, and sustainable luxury brand.

Our conversation covers Partners Group’s thematic approach, Breitling’s long history, and its characteristics as a luxury brand business. We discuss Partners’ initial purchase of a minority stake in the business, its path to buying a controlling stake, and plans to grow the business from here.

For full show notes, visit the episode webpage here.

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Mavis Tire Express Services – David Roux and Tom O’Rourke (BayPine), (S2.EP.07) May 31, 2023

David Roux and Tom O’Rourke lead BayPine, a private equity firm founded in 2019 that manages $3 billion across healthcare, consumer, industrials, and business services with a focus on growth through digital transformation.

Mavis is an independent tire dealer and aftermarket auto service provider with over 1,100 locations in the U.S. The chain dates back to 1949 and has experienced a growth explosion the last decade adding 1,000 service centers since 2015.

Our conversation covers BayPine’s strategy of digitally transforming core economy businesses, Mavis’ 74-year history, sourcing the investment, due diligence, differentiating BayPine’s bid, executing the digital strategy, and navigating macroeconomic headwinds.

For full show notes, visit the episode webpage here.

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Selective Search – Brent Beshore (Permanent Equity), (S2.EP.06) May 17, 2023

Brent Beshore is the founder and CEO of Permanent Equity, an investor in small, family-owned private businesses it buys with no intention to sell through investment vehicles with 30-year lives. He is well-followed on Twitter and a past guest on Capital Allocators, and that conversation is replayed in the feed.

Selective Search is the highest end matchmaking firm in the world. It helps its busy, successful clients find long-term committed relationships. As Brent describes, it conducts executive search for love.

Our conversation covers the matchmaking business, deal assessment and dynamics, enhancements during the four years of Permanent Equity’s ownership, and future plans.

For full show notes, visit the episode webpage here.

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[REPLAY] - Brent Beshore - Micro Buyout Adventur.es (Capital Allocators, EP.79) May 17, 2023

Brent Beshore is the founder and CEO of Adventur.es, an investment firm that buys small family-owned businesses with the intention of holding them indefinitely. After launching a few businesses out of college, Brent developed a distinct investment strategy and style. Earlier this year, he raised outside capital for the first time in a permanent capital vehicle, and I am a happy investor in the fund.

Brent regularly shares his insights on business and investing through his widely distributed letters on his website and commentary on Twitter. And just last week, he released his first book, The Messy Marketplace: Selling Your Business in a World of Imperfect Buyers. It’s a fantastic instructional guide that covers everything from emotional expectations to the fine print in documentation.

Our conversation covers Brent’s childhood interest in business, early mistakes, structural differences in his strategy from traditional private equity, search funds and fundless sponsors, sourcing deals, conducting due diligence, understanding valuation, negotiating, raising a first-time permanent capital vehicle, entering the ranks of professionals, and his new book.

Brent is unusually insightful about investing in general and deeply knowledgeable about the niche he occupies.

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Yahoo - David Sambur (Apollo Global Management), (S2, EP.05) Apr 19, 2023

David is a Partner and Co-Head of private equity at Apollo Global Management, a public alternative asset manager that invests across yield, hybrid, and equity strategies with 680 investment professionals overseeing $550 billion in assets.

Yahoo is a global media and tech company that connects people to their passions. Its origins date back to 1995 as one of the pioneers of the early internet era. It is well known for its web portal, mail, finance, and sports verticals, and houses a series of other businesses including the legacy of AOL.

Our conversation covers the modern Yahoo, its recent corporate history, and Apollo’s carveout of the business from Verizon. We discuss the deal dynamic, ownership plan across growth opportunities of core assets and divestment of non-core assets, new management team, tuck-in acquisitions on the come, and growth drivers going forward.

For full show notes, visit the episode webpage here.

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Yellowstone Club – Sam Byrne (CrossHarbor Capital Partners), (S2.EP.04) Apr 05, 2023

Sam Byrne is the Managing Partner and founder of CrossHarbor Capital Partners, a leading real estate firm with a multi-strategy platform across property type, geography, and capital structure that manages $7 billion and has put to work $28 billion across 350 transactions.

The Yellowstone Club is a private, exclusive ski club located in Big Sky, Montana, whose members reportedly include Bill Gates, Eric Schmidt, Justin Timberlake, and Tom Brady. CrossHabor bought the Club out of a messy bankruptcy in 2009.

Our conversation covers the history of the Yellowstone Club, process of purchasing the assets out of bankruptcy, and CrossHabor’s implementation of real estate, membership, and community development over the fourteen years since. We close with CrossHarbor’s pending exit of the investment, adjacent opportunities, and lessons learned.

For full show notes, visit the episode webpage here.

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TaylorMade – David Shapiro (KPS), (S2.EP.03) Mar 15, 2023

David Shapiro is a co-founder of KPS Capital, a three-decade old private equity firm that manages in excess of $14 billion with a focus on acquiring and improving manufacturing-based businesses. TaylorMade is one of the leading manufacturers of golf equipment, and a familiar brand to golfers and fans of the game. Our conversation covers the history of TaylorMade, desired spin-off of the business from Adidas, prolonged and broken deal process, and KPS’ winning the deal. We then turn to the steps KPS took to improve the business across its supply chain, product cycle, and marketing, and its decision to sell the business in 2021 after a complete turnaround.

Thanks to our Season 2 Sponsor - Canoe Intelligence. Learn more about Canoe and how it's technology is powering the future of alternative investments.

For full show notes, visit the episode webpage here.

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Blue Triton Brands – Scott Spielvogel (One Rock Capital), (S2.EP.02) Mar 01, 2023

Scott Spielvogel is a co-founder and Managing Partner of One Rock Capital, a private equity firm managing $5 billion that specializes in ugly, hairy, messy situations.

Blue Triton Brands is the business that formerly comprised Nestle Water North America, which collectively have the top market share in North American bottled water. Its brands include Poland Spring, Deer Park, Arrowhead, Pure Life, Origin, and a host of other specialty brands. One Rock carved out the business from Nestle in 2021.

Our conversation covers a history of bottled water, attractiveness and risks of the opportunity, and a deal process that started with the banker telling One Rock they were too small to participate. We turn to deal pricing, operational efficiencies upon ownership, reinvigorating brands, new initiatives, and early performance.

Thanks to our Season 2 Sponsor - Canoe Intelligence. Learn more about Canoe and how its technology is powering the future of alternative investments.

For full show notes, visit the episode webpage here.

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Fenway Sports Group – Ian Charles (Arctos) and Sam Kennedy (FSG), (S2.EP.01) Feb 15, 2023

Ian Charles and Sam Kennedy discuss Fenway Sports Group.

Ian Charles is the founder and Managing Partner of Arctos Sports Partners, a private equity platform dedicated to the professional sports industry and sports franchise owners. He was a previous guest on Capital Allocators alongside his co-founder Doc O’Connor, and that conversation is replayed in the feed.

Sam Kennedy is the longtime President and CEO of Arctos portfolio company, Fenway Sports Group.

FSG is a twenty-year old global sports, marketing, media, entertainment and real estate portfolio that has taken cherished and iconic sports clubs to new heights. The business includes ownership of the Boston Red Sox, Liverpool Football Club, and Pittsburgh Penguins, and a series of related real estate and media assets.

Our conversation covers the Fenway Sports Group holdings, business drivers, and attractiveness as an investment. We discuss Arctos’ sourcing, underwriting, and perceived risks of the deal, and then turn to Sam’s operating strategy, tuck-in acquisition of the Pittsburgh Penguins, importance of fielding winning teams, impact of private institutional capital, capital structure, on-field product, and future plans.

Long-time listeners likely know about my affinity for sports, so it is a great privilege to share this discussion of Arctos’ investment in FSG with you, and a special bonus to have Sam walking through how it works.

Thanks to our Season 2 Sponsor - Canoe Intelligence. Learn more about Canoe and how it's technology is powering the future of alternative investments.

For full show notes, visit the episode webpage here.

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[REPLAY] Ian Charles & Doc O’Connor – Investing in Sports Teams at Arctos Sports Partners (Capital Allocators, EP.225) Feb 15, 2023

Ian Charles and Doc O’Connor are the Co-Founders and Managing Partners of Arctos Sports Partners, a private equity firm dedicated to buying minority stakes in professional sports franchises. From its founding just two years ago, Arctos quickly has become the market leader in the space, raising a $2.1 billion first-time fund and a SPAC alongside Executive-in-Residence Theo Epstein, and buying stakes in MLB teams including the Boston Red Sox, the Golden State Warriors and Sacramento Kings in the NBA, and a compliment of other sports assets.

Our conversation covers their backgrounds and the formation of Arctos, the investment opportunity in sports franchises, and the underlying business and ownership structure. We then turn to the unique characteristics look of the asset, investment process, and growth strategy.

Full disclosure, I am a personal investor in Arctos’ fund and am a fan of their strategy and team, pun intended. I hope you’ll enjoy this conversation with Doc O’Connor and Ian Charles as much as I did.

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CD&R, Ravi Sachdev and Ron Williams – Scaled Growth Equity at agilon health (S1.EP.08) Dec 21, 2022

Ravi Sachdev is a Partner and Ron Williams is an Operating Advisor at Clayton Dubilier & Rice, a global private equity firm with $57 billion in assets under management that was founded in 1978. agilon health is a company CD&R created from the purchase of two businesses in 2016 and grew using aspects of buyout, venture capital, and growth equity investment strategies. The business assists primary care physicians transition from a traditional “fee for service” model to an outcomes “value-based” model, where incentives are aligned across patients, payers, and providers.

Our conversation covers the founding of agilon, its economics, and CD&R’s entry in the business. We turn to agilon’s start as a novel business concept alongside established traditional capabilities, driving operational change, expanding the model, and preparing the company to go public. We close by discussing the potential to leverage this model across other opportunities in the space.

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Advent International, Tricia Glynn - A Beautiful Carveout at Orveon (S1.EP.07) Dec 07, 2022

Tricia Glynn is a Managing Director at Advent International, the global private equity firm that oversees nearly $100 billion in assets. Orveon Global is a collective of beauty brands specializing in the future of the face. Advent carved out three brands from Shiseido Americas to form Orveon in 2021.

Our conversation covers the beauty business and the complex dynamics of a carveout transaction, including sourcing, due diligence, and preparing to hit the ground running with a new executive team and a transition plan for the newly independent business. We then turn to Advent's plan to reinvigorate the brands, improve operations, and add value through M&A. We close with challenges in the current environment, lessons learned from the deal, and a roadmap for the years ahead.

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Bain Capital, David Humphrey and Devin O’Reilly – Partnering, Merging, and Growing at Zelis (S1, EP.6) Nov 23, 2022

Dave is the Co-Head of Bain Capital’s North America Private Equity business and a Managing Director in the TMT vertical. Devin is the Head of the firm’s North America Healthcare vertical. Bain Capital manages $180 billion, about half of which is in private equity. Its CEO, John Connaughton, was a past guest on Capital Allocators and that conversation is replayed in the feed.

Zelis is a healthcare and financial technology company that addresses the most abrasive aspects of the healthcare system. It offers solutions for payers, providers, and consumers to reduce friction in the process of pricing, explaining, and paying for healthcare claims.

Our conversation covers Bain Capital’s consulting roots, the healthcare technology opportunity, collaboration with co-investors and management teams, and winning the deal. We discuss their ownership of Zelis, including merging two businesses, capital structure, tuck-in acquisitions, management, and potential exit strategies.

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[REPLAY] - Private Equity Masters 2: John Connaughton – Bain Capital (Capital Allocators, EP.201) Nov 23, 2022

John Connaughton is a Co-Managing Partner at Bain Capital, a leading global private investment firm that oversees approximately $130 billion in assets. Founded in 1984 as the pioneer of a consulting-based approach to private equity investing, Bain Capital today invests across private equity, credit, public equity, venture capital and real estate. Our conversation covers the early years of private equity at Bain Capital, its growth in products and assets, investment process, competitive environment, culture, and succession planning. We close with JC’s insights for allocators and his outlook on private equity.

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EQT, Arvindh Kumar - Transformation and Carve Outs at Innovyze (S1, EP.5) Nov 09, 2022

Arvindh Kumar is a Partner and Global Co-Head of Technology at EQT, a public company overseeing nearly $100 billion in assets across infrastructure, real estate, and all stages of private equity.

Innovyze is a mid-market vertical software company that provides smart water infrastructure to utilities and engineering firms. EQT carved out two subscale, non-core businesses from public companies to form Innovyze in 2016.

Our conversation covers the Innovyze business and the water infrastructure market. We discuss the sourcing, diligence, and deal dynamics of the complex merger. We then turn to integrating the two businesses, including a management team change, systems integration, product rationalization, and sales reorganization. We close with EQT's process for selling the business to Autodesk and decision to refocus from the middle market to its flagship strategy despite its success in the space.

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Berkshire Partners, Kevin Callaghan and Larry Hamelsky – Culture and Compounding at Parts Town (S1, EP.04) Oct 26, 2022

Kevin Callaghan and Larry Hamelsky are Managing Directors and long-time team members at Berkshire Partners, a 35-year old private equity firm managing over $20 billion in middle market deals and public equity. Kevin is a member of the Industrials and Consumer teams and Larry is a member of the Industrials and Communications teams at Berkshire.

Parts Town is a distributor of OEM repair and maintenance parts for the foodservice industry. The tech-enabled company provides 150,000 different after-market replacement parts to manufacturers of commercial kitchen appliances. Berkshire bought the business from Summit Partners in 2016 and transitioned ownership to a different Berkshire fund, continuation fund, and outside sponsor in 2021.

We discuss the business, finding and landing the deal, working with management, conducting tuck-in acquisitions, and recapping the business for another chapter of growth.

Stone Point, Jarryd Levine – Value in Industry Specialization at Bullhorn (PE Deals EP. 3) Oct 12, 2022

Jarryd Levine is a Managing Director at Stone Point Capital, a financial services specialist that has invested $21 billion across 135 businesses in the space. Jarryd helps lead the firm’s investments in Business Services and Human Capital Management.

Bullhorn is a leading global software provider for the staffing, recruiting, and contingent labor industry, servicing over 10,000 staffing agencies worldwide. Stone Point acquired Bullhorn in September 2020, as the fifth private equity owner of the business.

We discuss Bullhorn’s history, Stone Point’s rationale for human capital as a sub-sector focus, its multi-year, proactive search for the best business in the space, transaction dynamics during Covid, playbook as an industry expert, potential risks to the investment, exit strategy, and lessons learned.

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[REPLAY] Private Equity Masters 8 – Chuck Davis – Stone Point Capital (Capital Allocators, EP.207) Oct 12, 2022

Our Private Equity Masters mini-series concludes with Chuck Davis, the CEO and Chairman of the Investment Committee at Stone Point Capital. Stone Point has invested $21 billion across 135 businesses, all in the financial services industry. Prior to joining Stone Point’s predecessor entity at Marsh McLellan twenty-three years ago, he was a partner at Goldman Sachs, where he spent the prior twenty-three years, culminating in serving as Head of Investment Banking Services Worldwide.

Our conversation covers Chuck’s time at Goldman Sachs, his transition to private equity, and the formation of Stone Point Capital. We then turn to the firm’s multi-year, outbound, targeted search for the best executives in financial services, work with portfolio companies, activity in the asset management sector, and management of Stone Point.

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Thoma Bravo, Scott Crabill – Public-to-Private at RealPage (PE Deals EP. 2) Sep 28, 2022

Scott Crabill is a Managing Partner at Thoma Bravo, the software and technology specialist with $120 billion in asset under management. He joined Thoma Bravo twenty years ago to help develop its software investment strategy.

RealPage is a technology platform that enables real estate owners and property managers to efficiently operate residential assets. In 2021, Thoma Bravo took the company private from the public markets for $10.2 billion, which at the time was the largest transaction in the firm’s history.

Our conversation covers the history of RealPage, its ownership structure, competitive positioning, and differentiators as a business. We discuss Thoma Bravo’s sourcing, deal dynamics, and first year of ownership that included a management transition, operational improvements, tuck-in acquisitions, and a change in capital structure. We close discussing Thoma Bravo’s exit strategy down the road.

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[REPLAY] - Private Equity Masters 7: Orlando Bravo – Thoma Bravo (Capital Allocators, EP.206) Sep 28, 2022

Orlando Bravo is a Founder and Managing Partner of Thoma Bravo, a private equity firm focused on software and technology companies with over $78 billion in assets under management. Among his many accolades, Forbes named Orlando “Wall Street’s best dealmaker” in 2019.

Our conversation covers Orlando’s background, early investment lessons, and approach around management, analytics, and collaborative culture. We then turn to the Thoma Bravo’s investment philosophy, team structure, work with portfolio companies, exit strategy, and future. We close with Orlando’s thoughts on SPACs, valuations, and philanthropy.

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KKR, Pete Stavros – Employee Ownership at C.H.I. Overhead Doors (PE Deals EP. 1) Sep 14, 2022

Pete Stavros from KKR dives into C.H.I. Overhead Doors.

Pete is the Co-Head of Americas Private Equity at KKR, the legendary firm founded in 1976 that today is a public company managing around $500 billion in assets. Pete previously led KKR’s Industrials team, where he pioneered an employee engagement and ownership model.

C.H.I. Overhead Doors manufactures garage doors and is a recent KKR portfolio company exit. We discuss how KKR became the fourth private equity owner of the business, its gameplan to improve operations and employee engagement, and details of the exit. The runaway success of the deal provides us with a textbook case for the benefits of employee ownership, and we close our conversation discussing Ownership Works, a nonprofit consortium of business stakeholders initiated by Pete that is on a mission to increase prosperity through shared ownership at work.

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Welcome to Private Equity Deals with Capital Allocators Aug 15, 2022

Hello, I’m Ted Seides, the host of the Capital Allocators podcast, and it’s my pleasure to bring you Private Equity Deals.

This show dives into deals in the private markets through conversations with private equity managers. Much like Capital Allocators, we’ll share conversations that previously occurred behind closed doors between private equity managers and their investors. In each episode, we discuss an individual deal to learn about the companies, deal dynamics, and ownership that make private equity a force in institutional portfolios and the global economy.

You can keep up to date and join our mailing list at capitalallocators.com

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