Private Equity: Vom Family Office zu institutioneller Größe

0:00Unternehmer/Gast I buy equity from business owners. Buy equity from business owners. >> a private equity fund. Okay, cool. >> So, um we're doing about 25 million across the group. We want to get to, you know, over a billion EV. Do you have LPs or is it you? Uh in fact, it's family office money, yeah. So, it's Okay, so it's just you. Yeah, yeah. So, we can scale through institutional or family office LPs if we need to, but So, you have you don't syndicate anything, it's just all Uh we do deal by deal, we'll go to family office or institutions if we need to.

0:26>> Got it. Okay, got it. Um what's stopping me really is the scaled like institutional quality capability, but like you guys have. So, So, you like I can go into a portfolio of companies, do a roll up, scale it, take it public, sell it, etc. But, what we want to do is obviously build out a capability so that we have lots of assassins going out and doing it. Yeah. How did you do it? A lot of money and a lot of time.

0:51Alex I mean, to be like so the >> Like phase by phase what I'm talking if you go from where you guys started like through the phases of now getting to more of an institutional scale. So, I would say that do you feel like you can't generate alpha in bigger companies? No, no, we've done I've done big We've done like a few hundred million companies we've done. So, then I think that I think I mean, you're you're you're rather than reinventing the wheel, I think you're running into the issue that everyone runs into, which is like we did just for I mean, for your sake.

1:24Like we did um 24 deals in 24 months from I'd say 2021 to 2020 end of 23, somewhere in there. And so, um during that process, we quickly were like wow, um this is taking up a lot of bandwidth, um and a lot of these are just not worth it. And so, uh the you know, the star performers in the portfolio so much outperformed everyone else that I actually just gave people their equity back. I was like, you can keep the money and the equity. I just would rather not talk to you.

2:01Um Um some people took it well, some people didn't. Uh we've done a similar thing, too. >> Right, it's just like this is just not worth the time, right? And so, I think the the the point that I'm making here is that almost every private equity firm just ends up raising more and more money and doing the same number of deals that they have bandwidth for and just doing fewer bigger deals. And so, it's like that's why I asked like do you feel like you can still generate alpha with the bigger deals? If so, awesome. And I brought that up just because if you look at um Constellation. You familiar with them? Yeah, yeah. Yeah, it's like they're they know their alpha is just going after, you know, $3 million deals and doing 600 deals a year, and that's their that's their whole thesis. And so, they have to build a whole model around that. But, if you're like I can go bigger, then it's like maybe you do keep the few assassins and you slowly acquire people um through the process. And one of the one of the interesting tricks is like sometimes you do you find you know, you you look at a company that company sucks, but there's like a really [ __ ] good marketer in there. Or there's a really good sales leader or whatever.

2:57Alex And it's like hey, um maybe you should we just pull you into HoldCo, and then we can get so much more return on this person's skill set across the whole portfolio than just in in this one small deal. And so, in a lot of ways it's like there's usually, especially in the small businesses, um only like one or two people who are good. And then it's just like finding who those key drivers are, and then just the rest of it it's like almost more valuable to just pull out the diamonds, forget the business, and then put it into a better business vehicle. So, to answer the question of like how did we do this? It's just like we were always looking for talent. And I would say that as a company, like internally, we're in the talent business.

3:36Alex People like when people are like, what business like we're in the talent business 100%. and always willing to overpay. So, we pay 90th percentile, which is pretty high, um for all of our roles, cuz I just want the best. And we get so much more alpha return um by being willing to pay significantly above market. It's just like for everybody, I would strongly encourage you if let's say the market for a sales director is $200,000 a year, if you have a sales director that you think is an absolute savage and they want $400,000 [snorts] a year, you will make $4 million a year extra by getting the savage.

4:11Alex And so, thank you. That was a little like amen. Um uh So, so I think um from a from a from a you have your core team, you have these deals. I would start basically divesting time into the deals that are small. And then I'd see if I can pick off people from those portfolio companies, pull them into HoldCo. That's going to start bolstering up HoldCo. That might help you identify better opportunities that are bigger. If I can raise more capital, then I'll still do that. And then ongoing, I don't know who you have at your at holding company, but having a director of talent who's experienced with executive recruiting.

4:46So, like the core function that we ran as basically almost our primary value driver in the very beginning of acquisition.com was recruiting. We were just very good at it. And so, by the way, that's how you scale stuff. Uh and so, we had to get really good talent. And so, I am a big believer in having like almost the same size recruiting team as I do sales team. And so, that was also one of the big ways that we were able to basically fill in exact teams and leader teams within these portfolio companies we bring them in. It's like there's only two winners.

5:13Either we can pull the winners out or we can put three more winners in and now we have a full company. That out. Yeah, yeah, cool. So, go bigger and get better talent. Yeah, cool. So, if you've hit a revenue ceiling or your entire business relies on you to grow, then I'd love to invite you out to our headquarters here in Vegas to learn how we scale. It's a my team spends two days with you to identify the thing that's holding your business back. And so, if that sounds interesting, click book a call, and if you're a fit, we'd love to potentially see you out here in …