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Private Equity Operations (1/2; number two will follow next week…)   We’re deeply convinced that you cannot invest in companies without operational support. That means hiring someone and sending him in for support in portfolio companies – not for controlling or sniffing around. If you don’t do that as an investor you can be lucky in good times but you won’t improve the companies that you are investing in (do you really think that your job is done at closing?) and when things go wrong you cannot react and realize too late. Also you cannot have Portfolio Operations sitting in the cosy GP offices all day. I’d like to have those guys labeling storage places instead of playing with Excel all day.   That’s the difficulty at the lower end of the market: You need to send in and pay for a manager even if the starting company is a small-cap to begin with. I once read an investor presentation of a German “Mittelstand” fund that claimed to be very close to its portfolio companies reading very carefully its quarterly report and doing a strategy session with the management every year. Well, good luck with that!   Now at Family Trust we’re lucky having hired our own Portfolio Operations Team – now consisting of six external team members separate from our investment team and the GP. You can’t individually attribute value creation but I’m sure it makes the difference between good and stellar returns.   # Private Equity Operations # turning small-caps into mid-market champions   PS: As for the picture… yes, we had a company event with everyone, people love to brag about that on Linkedin. I just couldn’t think of a fitting Portfolio Operations picture. Family Trust Investor FTI GmbH Jörg Dockendorf Markus Bauer Konstantin Gatti Jan Pfeiffer Adrian Favro Kevin Schmidt

My notes from studying Jon Gray, President & COO of Blackstone (~$1 Trillion AUM) turned into 1 sentence lessons: 1. Avoid financing long duration assets with short term debt 2. Make investment decisions based on large scale themes (i.e: e-commerce, life science, big data, etc.) 3. Your first job should have a culture of meritocracy and a culture of teaching 4. In real estate, be aware of many cranes and lots of leverage 5. If you want to be GREAT, only work on something you truly enjoy 6. Luck is a core competency - live a life that creates favorable results 7. Find where the tech and creative types are going, there are often tailwinds in those locations 8. Don't lose sight of what is temporary and what is permanent (I.e: travel during c*vid) 9. Avoid business that cannot pass inflationary pressure onto the customer 10. Life is unforgiving - find the right life partner

No one was more amazed at the magic of growth-oriented #privateequity careers in the 2010-2021 period than us. Ivy league MBAs were in incredibly high demand, pushing mid-level compensation programs to all time highs in private asset firms of all types. Financial engineering and opaque fees won the day with acceptable returns flowing to asset owners. But the bubble is unfolding, and the real skills of making a struggling company more profitable are now coming into view. We expect a new wave of executive demand in the operations improvement arena to drive several years of robust executive recruiting partnerships to fill this gap. We hope you are on the right side of this curve. https://lnkd.in/eafxVK7D

As we work across the world of Private Equity, there were a few things that struck me when people made the move.. Is Private Equity for you? https://lnkd.in/efuPmhCP

As you embark on your journey toward becoming an investor, let’s explore some of the different types of investors 1. Novice Investors: most retail investors are novices who buy shares the Ultimate ,Sophisticated & Qualified Investors sell to them . 2.Qualified Investors: are the people whobare employed to sell shares and other securities to the public .They went to school to learn banking & investing .Most bankers , asset managers , fund managers and pension & insurance fund managers (aka institutional investors).They are in thoes jobs for the salaries even though they work with investments. 3.Sophisticated Investors: are the private equity investors like venture Capitalists, angel investors and investment bankers . 3.Ultimate Investors: These are the people who start from their garages and backyards building innovations that solves everyday problems .They know how to scale their businesses ,entice Sophisticated Investors to buy into their innovative business solutions with the promise that the Sophisticated & sometimes Qualified Investors will reap rewards at Initial Public Offer (IPO )and post IPO

What investments into the consumer sector used to look like: - Private Equity funds inject capital into profitable businesses to fuel the next stage of growth and (often times) provide some liquidity to founding team. What investments into the consumer sector will look like going forward: - Private Equity funds inject capital into profitable businesses to fuel the next stage of growth and (often times) provide some liquidity to founding team. The old is new again.

When is the right time to fire within your Portfolio company? Alex Rawlings is Raw Selection's Founder and Managing Partner and has had many conversations with portfolio companies wanting to make a change! Listen to his advice that he has learned from other companies' mistakes - https://lnkd.in/epTBrduc #privateequity #rawselection #portfoliocompanies #firing #hiring

About Investments Members Careers Menu Search Equities Expertise and agility to invest across the full equity spectrum. sunrise overlooking a vinyard $72B in investments 200+ Direct and fund investments 140+ investments professionals We search the world for the most attractive opportunities across public and private equity markets. We're looking to make bigger, bolder commitments to companies with strong business models, a clear purpose and the ability to generate superior returns over time. Close up of hand holding dentist mirror Flexible capital that can go anywhere With a broad global mandate spanning public and private markets, our flexible capital allows us to pursue control buyouts, take direct cornerstone positions or co-invest with strategic partners over the short or long term. Our flexible investment horizon means we can invest additional capital for future growth without being limited by pre-set exit timelines.

How to start a career in Private Equity ?