Jeremy Levin

I’m a strong believer in the idea that leading is largely about building empathy. The job isn’t just helping others understand the mission - it’s helping them complete the mission and building alignment through personal context. To take it a step further, you can’t be empathetic if you aren’t curious. Curiosity drives us to ask deeper questions - those questions build empathy and, then, we become more aligned.

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Why is leadership diligence pre-deal not a norm given the importance of key talent in delivering the thesis? With the acquirer and target wooing each other at this stage, conventional "assessment" is too heavy, feels risky for the acquirer, and is a tense subject for the target's leadership team. But done sensitively, this can provide critical additional pixels on human capital risks in transition; and talent, teams and org. risks to the emerging thesis. AND this can be done quickly, with limited or even no access to the target's leadership team. Ultimately this can help the deal team to underwrite risks better, and if the acquirer chooses to go ahead with deal, provides a starting point to proactively and precisely mitigate human capital risks in the first 100 & 300 days. Sandy Ogg Sumeet Salwan Shefali Salwan Chris Gagnon Alex Kopitsas Pradeep Nambiar Sudhir Variyar Renuka Ramnath Richard Cleverly James Carolin Sanjay Kukreja Sunil Mishra

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I love this! Thank you to Rachel Brown from Beauty Independent to kick-off this exchange with Andrew Ross' provocative thesis and have us all react to it. I truly enjoyed reading everyone's thoughts on the topic of the shortening lifecycle of beauty brands. Here is a snippet of mine: "Because beauty brand lifespans are shortening, it is important that we are able to differentiate brands with staying power from brands that will end up being a flash in the pan. There are much more of the latter than the former in the market right now, and if a brand is not well-positioned, it will be challenging for that brand to survive over the long-term. That’s why we focus on understanding each brand’s differentiators and long-term relevance." See more here: https://lnkd.in/esVbwnu2 and you will discover what Kevin Murphy, Odile Roujol, Rich Gersten, Tina Henry Bou-Saba, Oliver Nordlinger, Claire Chang, Manica Blain, Sonya Brown, George Birman had to say. #beautyindustry #beautyinvesting Stride Consumer Partners

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🔍 Want to land a role in private equity or create your own deal? Our playbook for executives offers a comprehensive roadmap to enter the PE field, emphasizing networking, strategic positioning, and leveraging resources effectively. Read more here: https://buff.ly/4flClVy 💼 Learn more about Blackmore Partners: https://buff.ly/42iNmB3 📅 Have questions? Schedule a meeting with our Director Chris Melton here: https://buff.ly/4cpKqHv #PrivateEquity #CareerGrowth #ExecutiveRoles #BlackmorePartners #PECareers

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🔹 KKR Acquires Instructure Holdings for $4.8B KKR, with Dragoneer's support, is set to acquire Instructure Holdings (NYSE: INST) in an all-cash deal worth $4.8 billion, or $23.60 per share. This acquisition also includes Thoma Bravo’s stake. 🔍 Why This Matters: Instructure's journey through the public and private markets continues to captivate. Thoma Bravo took Instructure private in 2020, only to relist it a year later. This latest move adds another intriguing chapter to its story. 📈 Key Details: - Premium Price: The acquisition price reflects a 16% premium over Instructure's May 17 stock price, following initial sale reports. 💡 key takeaway… "A take-private of the company is the second involving an education software provider in quick succession. Bain Capital agreed in June to buy PowerSchool Holdings Inc. in a $5.6 billion deal." — Ryan Gould #PrivateEquity #PrivateEquityFirms #EdTech

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- With distributions harder to come by this year, more firms have been thinking about GP-led secondaries processes as an alternative path to exit. -Far from being a short-term fix, however, some believe these transactions could be seen as a “new normal” for exiting private equity assets. - A number of LPs are assuming that there will be little to no IPOs - Today you have more deals being done on the GP-led side than on the IPO side. - There could be €50 billion to €60 billion worth of GP-led transactions executed this year. - Supply is coming from GPs looking for alternative exit routes, demand is also coming from new LPs entering the sector.

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Another remarkable emerging manager middle-market private equity fundraise as San Francisco-based Knox Lane raises their Fund II with $1 billion in total commitments, exceeding the target of $850 million, and the oversubscribed fund receiving significant support from existing and new investors in a 46% increase in fund size over Knox Lane's first fund, which was $610 million. The firm now manages approximately $3 billion. I also find it notable that the fundraise was supported by William Blair's private capital advisory team - many of whom have come over from the once market-leading Credit Suisse platform. This is noteworthy as several other recent successful emerging middle-market private equity fundraises have been alongside boutique middle-market fundraising specialists such as Lazard, Aviditi Advisors, M2O, Inc. Spartan Advisors and others. An increasing number of international limited partners in Asia and the Middle East are asking me about the best placement agents to access US middle-market private equity fund managers. The names above are certainly worth connecting. While the announcement has been recent, most of the Knox Lane fundraise was completed late 2023/early 2024 while left open for a few tail-end follow-on investors, and several market participants noted this was quite a rapid fundraising process for Knox Lane. Knox Lane has completed eight platform #investments and approximately 40 add-on #acquisitions. Definitely a private markets fund manager to track. Congratulations to all! #alternativeassets #privatemarkets #fundraising #emergingmanagers #fundmanagers #capitalmarkets #limitedpartners #institutionalinvestors #privateequity #middlemarket https://lnkd.in/gQb8NttE

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#orion #Sweetwater_Royalties Orion Resource Partners, a global investment firm specialising in metals and materials, has sold an 8% minority interest in Sweetwater Royalties, a private industrial minerals royalty company, to a Canadian pension fund for $100m. The transaction implies an approximately $1.9bn enterprise value for 100% of Sweetwater Royalties, with Orion retaining a 67% majority ownership share in the asset, having sold a 25% stake to Ontario Teachers’ Pension Plan in March 2023 for approximately $220m. https://lnkd.in/gkKMP3Tr

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PE & More Exits I see significant potential in this area - it's important for PE firms to drive tangible value creation and capital-efficient, high-ROI operational improvements that enhance Equity Value and pave the way for successful exits. The #1 example of such value creation: Profitable Revenue Growth (which affects disproportionate EBITDA growth) ------------------ #business #pe #privateequity #ceo #cro #growth

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Patience and vision - the two key ingredients for successful long-term investment. As a Managing Partner at Black Slate Capital & Advisory, I've seen firsthand how growth capital can transform underperforming assets into billion-dollar success stories. It's not just about the money; it's about having the foresight to see the potential and the patience to let it unfold. In the private investment world, we often talk about the importance of a great vision. But what does that really mean? To me, it's about seeing beyond the immediate returns and focusing on the bigger picture. It's about investing in companies that have the potential to make a real impact, whether that's through innovative technology or by addressing a pressing social need. Of course, this approach requires patience. Rome wasn't built in a day, and neither is a successful investment portfolio. It takes time to nurture and grow a company, to overcome challenges and to realize its full potential. But for those who are willing to wait, the rewards can be substantial. So, to my fellow investors and entrepreneurs, I say this: don't be afraid to think big and play the long game. The most successful investments are often those that are given the time and space to flourish. Let's connect and share our visions for the future – who knows what we can achieve together? #Investment #GrowthCapital #LongTerm

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🤔 Sounds like Pearl IO paid these guys...We didn't, but it doesn't hurt that they highlight how and why we exist and how we approach supporting PE partners succeed. Check out this recent Alvarez & Marsal webcast. Quick summary / takeaways: Generative AI is reshaping PE by accelerating deal execution, enhancing problem identification speed, and deepening analysis. Neat to see dialogue within PE continue regarding opportunities to enhance methods and outcomes. #PE #PrivateEquity #AI #Innovation #DataAnalytics #duediligence #diligence #portfoliomonitoring #valuecreation https://lnkd.in/dD3wznWS

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PE - Gross & Operating Margins <> Unique & Compelling Value Proposition, from Pat Grady on the "Invest Like the Best" podcast Pat Grady, Growth Equity Investor: "Unique and compelling value proposition is a comment on margin structure. If you have a unique value proposition, that should show up in Gross Margin because if your product is truly unique, you should be a price setter, not a price taker. And if you are a price setter, you should be able to set a price that's going to provide you with nice gross margins. So unique value prop gets you to a good gross margin. Compelling value prop is a comment on Operating Margin. If your product is truly so compelling, you shouldn't have to bludgeon people to death with sales and marketing to get them to try it and to get them to pay you for it. So if it is truly compelling, that should show up in the efficiency of your go-to-market organization or maybe there's a number like new ARR divided by sales and marketing where there's a number like LTV to CAC or there's a number like payback period. There should be some number or maybe 99% of your new customers come in organically." Source: Pat Grady & Patrick O'Shaughnessy, CFA https://lnkd.in/e38cjdyG #growth #investing #pe #privateequity #sequoia

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Generative AI has taken center stage for its ability to analyze data and craft human-like outputs that can be used for a range of purposes. One of the places generative AI can make the biggest impact on a business is by utilizing the tool in a sales or marketing function to drive efficiency. Read the article below to discover how companies can improve their sales and marketing function with generative AI, and learn A&M’s Private Equity Performance Improvement group’s framework for implementing the tool in your portfolio company. #PrivateEquity #AI #AlvarezandMarsal

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His career started when someone said to him, “well, have you thought about venture capital? We don’t think that you’d be any good at it.” The rest is history. Today’s Alt Goes Mainstream episode features one of the legends of the venture capital industry. Peter Barris joined New Enterprise Associates (NEA) in 1992 after a storied operating career as President and COO at Legent Corporation and an executive at GE Information Services. He served as Managing General Partner and Chairman of NEA from 1999 to March 2024. Under Peter's leadership, NEA saw tremendous success, growing into one of the world's largest venture capital firms and raising the largest-ever venture capital fund a number of times. Today, NEA's AUM stands over $25B. Peter was responsible for investing in a number of foundational and industry-transforming technology companies, including Salesforce, UUNET, Groupon, WebMD, Workday, CareerBuilder, Tempus AI, and more. We had a fascinating discussion about the early days of venture capital and how the industry has evolved. We covered: * The inside story of how almost every other Partner said no but Peter's investment turned out to be a 75x return. * What's the “best characteristic and the death characteristic” of an entrepreneur? * In today's hypercompetitive market do VCs have enough time to make good decisions? * Why the world of venture capital is about influence. * What does it mean to earn an entrepreneur’s trust as a VC? * Why VCs with operating backgrounds can bring unique value to startups. * How NEA came up with the term "Venture Growth Equity." * How can a VC tell that a founder is good at experimentation and that they have the good judgment? * Why specialization and domain expertise are prerequisites in today’s venture industry. Thanks to Ultimus Fund Solutions for sponsoring this episode of the Alt Goes Mainstream podcast. Thanks Peter for coming on the show. It was an honor and a pleasure to hear your views on the evolution of an industry and for you to share your wisdom and experiences. https://lnkd.in/eEJGEFWe

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https://lnkd.in/gZeefZhX Private equity funds gathered $176.7 billion in the first quarter of 2024, a drop of roughly 10 percent from the $195.5 billion recorded in the same period last year, according to preliminary findings from PEI data. Interest rate uncertainty continues to weigh on buyout and exit activity, while record dry powder for the asset class remains stacked for 2024, the data found.

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Boards of Directors – How Relevant To The Business Is The Board? In 2014, activist investor Starboard Value successfully replaced all 12 directors on the board of Darden Restaurants. The following shows the Darden incumbent board at the time of Starboard's proxy fight, Starboard’s value creation plan initiatives, the Starboard director nominees and the before and after performance (revenue, EBITDA, EBITDA margin and stock price). Note especially the direct relevance of each Starboard nominee to the industry or some aspect of the value creation plan. How often do you see this level of relevance on public company boards?

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