Carrie Schochet’s Post

A common pitfall occurs in private equity due diligence and hiring executives for portfolio companies. That's the tendency to fall in love. When you fall in love with a deal or a candidate, you are liable to miss problems or potential problems. You may not ask the right questions or make wrong assumptions. That's because you have a distorted lens. A distorted lens is one of the biggest enemies to achieving great outcomes. Candidates can have a distorted lens, too. They fall in love with the company and the job during an interview process and fail to do sufficient due diligence on the company and the role. The tendency to distort is very human. I know I do it. I've learned, though, that I need to take a step back and slow down to see the reality of a situation clearly. Another reason we can develop a distorted view is that we're in a hurry. We move quickly and use shortcuts to achieve the desired speed. This is a problem, in particular when we haven't planned adequately. For example, if you're a private equity firm that regularly hires CFOs, do you develop relationships over time with desired talent, or do you take a tactical approach and try to find candidates quickly when needed? A final reason you can fall prey to a distorted lens is hubris. You're smart, you're good at what you do, and you think you're great at hiring. Again, this can happen if you're doing deals. You think you have great instincts and use them as shortcuts to making decisions without conducting a thorough and structured evaluation. Maybe you can't admit when you're wrong, so you never learn from making mistakes. Hiring is hard, and so is doing deals. Both require an objective, structured approach where we ask ourselves, what am I not seeing here? How are my assumptions flawed? Are my emotions getting in the way of a more objective analysis? Am I moving too fast and missing important considerations? It comes down to a combination of self-awareness and a structured, objective, data-driven process that reduces the chances of distortion. Avoiding a distorted lens also requires getting multiple views on a situation and taking out any politics that keeps others from being open, honest, and potentially disagreeing. So, go ahead and fall in love with deals and candidates, but do so slowly and with clear, open eyes.

If a company won’t hire because you don’t have the experience, how can you get the experience if you can’t get a job in the first place? Create a faux company. No, it’s not what you think. Don’t file fraudulent paperwork and open fake bank accounts. Make up fake data. Imagine you’re running a startup. Consider what you’d do if you a contestant on Shark Tank. This is the advice I gave to a MBA graduate who wasn’t getting favorable results from her interviews. She had to think about what the future of the future business looks like, coming up with assumptions about: Sales Products Customers Margins Hiring And more. Experiences and critical thinking can grow through our own imaginations. This young woman did and then landed into a long-term rotation at a Fortune 500 financial leadership development program. She still works for the company many years later. —————————— The appropriate interview question isn’t: “how did you solve this problem you faced in your past?” The question should be: “how would you solve this problem if it arose in the future?” We mustn’t hire finance people solely based upon track records. And while past performance can be an indication of future behavior, we can’t solve future problems with the same level of awareness that created them. We hire people based upon their critical thinking, reasoning skills and ability to meet the challenges where they are. Create case studies of our own can fill a void when experience doesn’t come through other means.

PE BACKED EXPEREINCE 😕 I met with a client yesterday, and we ended up talking about the state of the market and the type of outreach he has had from recruiters. Due to his background, he gets a lot of opportunities thrown his way, where they are all looking for someone who has worked in a ‘PE Backed Business.’ If you don’t have that, then you don’t even get a look in. This made us both question: how important actually is that experience for a role? Don’t get me wrong, I’ve had this from a client before when taking a brief, and it was non-negotiable. But what differentiates experience in a PE-backed business from other high-growth businesses? PE-backed comes with an aura of a fast-paced environment, with a demanding board looking for a return on investment, where you will wear multiple hats. But why is that any different from a bootstrapped or public-listed business that sets its sights on hyper-growth? Do they not come with a lot of the same hurdles? From a finance function standpoint, I do admit there might be some differences, such as cash burn and the financial runway may be a lot shorter. But in essence, it’s all very similar, is it not? What’s your thought? How essential is it, and why would it be non-negotiable for you as a hiring manager? #saasrecruitment #techrecruitment #pebackedrecruitment #seniorfinancerecruitment

Just wanted to put a little PSA into the ether; in short, do your research before you embark on your job search - it's a bit tough out there. Might sound counter-intuitive coming from a recruiter BUT my reasoning (in no particular order) below; 💚 Is the grass greener? Try not to make rash decisions, especially in a tough market. It's not all sunshine and roses at the moment - but this is when the tough get going and show their courage colours! 👿 Nothing quite like the devil you know, you'll have built great internal relationships - delivered exceptional results - led by example. That "currency" is worth a lot in a market where businesses are looking to tighten purse-strings! 🔥 Are you in the middle of a restructure / redundancy round? NEVER fun, but if you're able to keep laser focused on the light at the end of the tunnel there can be some excellent opportunities that come from that process. Think phoenix rising from the ashes vibes! 🔄 Hiring is more about replacement vs growth in this market - there are certainly opportunities out there, but they're more competitive to secure. 💰 It's budget and new financial year season - a lot of new FY budgets are being set throughout March / April, so it might be worthwhile sitting tight until you know how those cards are going to land.

Equity, do your employees know what it means?   When making a job offer, there's often a bit of confusion around equity and it's meaning. A Founders & Companies view it: "You should consider yourself lucky, you'll be rich" 💰 Yet a candidate is often unsure as to what the allocation really means. 🤷♀️ 🤷♂️ My first response to any equity offer: help me explain this, what was your last valuation, what's your exit plan, the list goes on. My clients with the highest offer to acceptance rates? Have a few slides ready to go which explains their expected growth, inline with milestones (ARR, Valuation) and explain what that would mean for the equity offered.   They also include a Big Hairy Audacious Goal BHAG! 🚀 #Equity #AcceptanceRates #Curated

I spoke with a Head of Investment Operations last week who never understood why a candidate had taken a counteroffer to stay with their current firm. I asked her if she had thought about why the candidate should have moved if the money was the same and the role was similar. She could answer the question, but it took a while. The hiring team hadn’t sold the role in the interview. If you are recruiting for a role within investment operations, try considering a few things: •           Why would someone doing a similar role in the industry want this role? •           What separates the firm compared to your competitors? •           Aside from money, what do you offer that’s unique? •           Has the candidate left feeling like you’ve explained why this is a great opportunity? As recruiters, the above is a big component of our role, but make sure you sell yourself, the opportunity, and the company when meeting candidates. I am happy to advise anyone in this space. Nathan.macfie@merakitalent.com 02071015361

Imagine this: A financial advisor faces a choice. On one side is the path of prioritizing investment strategies; on the other, the road is less traveled, focusing on truly understanding and meeting the client's needs. The first option might promise immediate rewards, but the second builds lasting relationships and trust. This scenario isn't just a hypothetical—it reflects our values as a recruiting agency.  You're not just another case to us. Your firm's success and smooth operation are our top priorities. We're here to listen, adapt, and help you propel your firm forward. Because at the end of the day, it's not just about the talent we find—it's about the relationships we build and the solutions we provide that truly make a difference. If you're on the fence about partnering with a recruiting firm because of any preconceived notions, I'd love the opportunity to chat. You might be surprised at how much we can offer and the impact we can make together. #recruiting #financialadvisor

When I ask the question what is the culture like, I usually get a poor answer. It is rare to find a founder of the company who is still the CEO and kicking ass. Most get replaced for whatever reason. But when I ask them as I did recently, the answer was incredibly detailed. I have to admit its something that I have struggled to talk about regarding Raw Selection. I know it I just cannot communicate it I think I have cracked it and will be sharing our culture with you. In the hope. 1. You knock on the door of Sophie Diffley to explore a career here 2. You knock on the door of Jack Burns to undergo a critical portfolio C-Suite search 3. You knock on the door of Haleema Hussain to undergo a critical private equity professional search 4. Feel free to reach out to me to get a copy of ours to create your own alex.rawlings@raw-selection.com #privateequity #executivesearch #wearehiring

🎯 BENEFITS OF JOINING AN EXISTING FIRM: If you're looking to leverage the scale of a partner firm 🏛 or searching for a successor, you may want to consider joining an existing firm. Doing so may allow you to build off of an existing firm's infrastructure, processes, brand recognition, and more. The below 👇 checklist is a guide that will allow an advisor to determine if they have found the right firm and if they are a good fit. CULTURE: ✔ The firm's values align with yours ✔ I agree with the firm's pricing structure ✔ I share a similar vision with the firm's partners TECHNOLOGY: ✔ The firm has the technology necessary to stay efficient ✔ The firm uses technology to provide a better client experience ✔ The firm is willing to explore and invest in new technology INCOME: ✔ The non-monetary benefits the firm offers are attractive to me ✔ The firm's pricing structure will be beneficial to my income ✔ If I'm becoming a partner, I'm comfortable with the requirements GROWTH: ✔ The firm has a clear strategy for helping me find new clients ✔ There is a well-planned path for career growth ✔ The firm is willing to invest in educational opportunities OTHER CONSIDERATIONS: ✔ The firm will provide the support I need to transition ✔ The firm uses a reputable custodian I can trust ✔ The firm will provide me with staff and/or support I need to properly serve my clients Working with a firm like Momentum Wealth Partners we can help plug you into our ecosystem that can help chart your path forward for success. DM or email me at peter@momentumwealthpartners.com to learn more. #wealthmanagement #financialadvisors #morganstanley #wellsfargo #merrilllynch #ubs

Treat your career like an investor: “You can love the founder, and you can love the market, but just not love the valuation.” - Mark Suster Make sure you love all 3 before you join a company - especially these days! There are so many solid companies, with solid founders/teams, that are overvalued, which in turn makes them poor investments! This includes the investment of your time which is what you are doing when you choose to join a company full time. That is not meant to be rude or offensive to the founder, CEO, or your manager, it’s just the reality of business in 2024. You as the employee are extremely concentrated with your career investment, you need to be smart with that investment! If you need help finding a great company, with a strong team, and a solid valuation, please reach out, I’m happy to help point you in the right direction!