Lane Rankin, Founder of Illuminate Education, joins us to share his incredible journey from educator to EdTech entrepreneur. Along the way, he reveals the secrets to engaging founders, the importance of genuine human connection in private equity, and his vision for a more supportive future for the industry.

If you’ve ever found yourself becoming frustrated with the impersonal, transactional nature of private equity outreach, this episode is definitely for you as Lane exposes the flaws in traditional approaches and champions a new era of relationship-driven dealmaking.

Join us today and discover how prioritizing shared values, vulnerability, and authentic curiosity can unlock unprecedented levels of trust and lead to mutually beneficial partnerships.

Key Insight [0:46:46]: "I really am focused on how do I continue to be a good elder...being someone that's helpful to people that are trying to do good things in the world." Learn how to shift your mindset from pure profit to purpose-driven investing as Lane shares his criteria for selecting ideal business partners.

Potential Pitfall [0:04:31]: "My first impression, honestly, was just hardcore money people...pretty cutthroat. Didn’t really care about the founders, didn’t really care about the products, just really cared about how much money can we make and how fast can we make it." Lane addresses the common fear of founders losing control and purpose when partnering with private equity, offering insights into how to identify firms that prioritize long-term value creation.

Strategic Approach [0:32:03]: "Four meetings. Four LOIs. That's it right there." Lane reveals how targeted outreach, based on deep research and genuine connection, can dramatically improve your success rate in deal sourcing. Discover how to identify your ideal partners and craft compelling outreach that resonates with their values and aspirations.

Practical Tip [0:54:01]: "If you were to look at my contacts right now...I know everybody's...birthday anniversaries, kids names...Because when I get back on the phone with that person, I'm going to be like, ‘Hey, last time you mentioned...’" Lane emphasizes the power of remembering personal details to foster deeper connections. Learn how this simple yet powerful tactic can differentiate you from the competition and build lasting relationships.

CHAPTERS:

00:00 - Guest Introduction: Lane Rankin

01:18 - Early Private Equity Exposure

05:14 - Evaluating Private Equity Partners

10:32 - Evolution of Private Equity Outreach

19:46 - Partnering with Insight Partners

25:02 - Human Connection in Deal Sourcing

33:02 - Data-Driven Sourcing Precision

40:20 - Authenticity in Business Relationships

0:45:46 - What the future holds for Lane

0:48:37 - Lane’s ideal business partner

0:50:36 - Building relationships with high quality CEOs

Links:

Dan Herr: https://www.linkedin.com/in/danielherr/

Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/

Coastal Partners: https://www.coastalpartners.co/

Lane Rankin: https://www.linkedin.com/in/lanerankin/

Illuminate Education: https://www.illuminateed.com/

In this episode of Deal Sourcery, Matt and Dan explore one of the biggest challenges faced by private equity firms: creating a predictable, repeatable, and scalable deal sourcing strategy. Together, they dive deep into the cyclical nature of deal flow and discuss actionable solutions for firms to establish more consistent deal pipelines. The conversation emphasizes the role of business development in driving predictable deal sourcing, the importance of setting measurable targets, and how firms can hold their teams accountable for performance.

Matt and Dan also cover the importance of aligning sourcing efforts with firm-wide goals and how to measure the right metrics—focusing on outputs over inputs. They offer practical advice on managing deal pipelines with granular stages to improve capital deployment, and discuss how stronger relationships with investment bankers can lead to better deal coverage and deal flow success. Tune in for this in-depth look at business development strategies, goal-setting, and accountability, and learn how private equity firms can elevate their deal sourcing performance to achieve long-term success.

Episode Highlights:

00:00 Intro

00:53 Challenges in Consistent Deal Sourcing for Private Equity

02:43 Importance of Dedicated Business Development Roles

03:19 Setting and Measuring Goals in Private Equity Firms

05:23 Linking Goals and Accountability in Deal Sourcing

07:43 Defining Key Metrics

10:52 Managing Top Prospects Through the Funnel

13:18 Measuring Quality Over Quantity in Outreach

14:38 Outputs That Drive Sourcing Performance

16:02 Determining Outputs Based on Investment Strategy

18:46 Focusing on Volume and Velocity for Add-ons

20:28 Effective Banker Coverage for Deal Sourcing

22:47 Benchmarking Deal Visibility with Industry Data

23:39 Setting Accountability in Sourcing Teams

25:07 Evolution of Private Equity Banker Relations

26:55 Future of Investment Banking with Tech Integration

30:54 Goal Setting and Accountability in Sourcing Teams

35:40 Setting Individual vs Team Goals for Sourcing

39:28 Tailoring Goals to Seniority and Experience

40:34 Keeping Teams Accountable for Sourcing Goals

49:44 Avoiding Meeting Pitfalls in Sourcing

51:25 Shifting Meeting Focus for Effective Accountability

53:23 Encouraging Best Practice Sharing and Problem Solving

53:52 Using Leadership Influence to Support Junior Team Members

Key Takeaways:

"Private equity firms struggle with unpredictable deal flow. They want consistent, repeatable sourcing."

"Set targets and measure against them. Accountability is key for predictable deal flow."

"Most firms don't apply sales best practices internally. It's time to hold sourcing accountable."

"Focus on outputs, not just inputs. Measure results, not just activities."

"Pipeline stages need granularity. More stages mean better tracking and accountability."

"Align firm and sourcing goals. Measure what matters to your strategy."

"Banker relationships are crucial. They now choose buyers, not the other way around."

"Meetings should drive accountability, course correction, and support. Not just readouts."

"Annual goal setting, quarterly corrections, monthly updates - keep progress visible."

"Use meetings for problem-solving, not just reporting. Focus on moving top prospects."

Links:

Dan Herr: https://www.linkedin.com/in/danielherr/

Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/

Bill Nunan, seasoned private equity expert with extensive experience working across multiple verticals and current CEO of Lexipol, joins the podcast today to share his deep knowledge of the private equity world. Along the way, he offers a clear explanation of what it means to be a private equity operator, the evolution of best practices, and how these changes have shaped today’s business landscape. Bill emphasizes the importance of strategic planning, particularly in the context of add-on acquisitions, and the value of building strong relationships with founders.

Our guest also discusses how to manage daily priorities, focusing on achieving destination economics while balancing the challenges that come with mergers and acquisitions. He shares actionable advice on the collaborative nature of private equity, explaining how operators and sponsors can work together to create long-term value through strategic partnerships. The conversation as shared here today highlights the importance of developing a platform story to guide business strategy and concludes with key insights on building effective teams and managing deal sourcing relationships. For anyone navigating the fast-paced world of private equity, this episode delivers essential strategies for success from a proven industry leader.

Episode Highlights:

00:00 Intro

04:38 Transitioning from Public to Private Equity

05:45 Evolution of Best Practices in Private Equity

06:50 Role of a Private Equity Operator Explained

09:52 Daily Responsibilities of a Private Equity Operator

11:42 Focusing on Destination Economics for Growth

14:46 Importance of Strategic Planning for Add-On Acquisitions

18:24 Collaborative Approach Between Sponsors and Operators

22:28 Key Concerns of Founders During Add-On Acquisitions

24:55 Framework for Managing Deal Sourcing Relationships

29:11 Managing Simultaneous Deal Pursuits

32:42 CEO’s Role in Add-On Acquisition Strategy

36:51 Building a Platform Story for Business Strategy

39:41 Defining a Strong Platform Story for Market Positioning

41:18 Lexipol's Global Mission in Public Safety Management

43:22 Advice for Deal Sourcing and Building Relationships

44:59 Changes in Deal Sourcing Over Time

46:12 Best Practices for Effective Deal Sourcing Outreach

49:28 Private Equity as a Pervasive Business Model

52:41 Building and Leading Powerful Teams as a CEO

53:42 Traits of Effective Private Equity Partners

55:41 The Importance of Collaboration Between Operators and Sponsors

Key Takeaways:

"A private equity operator is hired to deliver destination economics. Growth in EBITDA is the mission. Challenges don't change that."

"The secret to success is building a powerful leadership team. Develop opportunities for the organization."

"Prioritize actions that drive the biggest impact."

"A good platform story creates uniqueness and differentiation. It defines a space you can own."

"Private equity is pervasive. Study it, become an expert. It's different from founder-led or public companies."

"Building powerful teams is my greatest strength. Invest time in developing leaders and making them successful."

"Strong relationships with founders buffer tough moments in deals. They help align post-transaction expectations."

"The rigor of an M&A plan is crucial. Define your targets and dismiss what doesn't fit your strategy."

Links:

Dan Herr: https://www.linkedin.com/in/danielherr/

Matt Rooney: https://www.coastalpartners.co/

Bill Nunan: