Welcome back to The Private Equity Podcast, by Raw Selection. Host, Alex Rawlings speaks with John Dahlgren, VP of Talent at SBJ Capital, about the growing role of internal talent in private equity, portfolio hiring strategies, and using talent partnerships to generate deal flow. John shares insights on hiring trends, common mistakes, and how SBJ Capital optimizes talent operations for long-term success.

Breakdown:

[00:00] Introduction to the episode and guest John Dahlgren. Overview of hiring trends in PE firms and portfolio companies.

[00:29] Rising demand for operating partner talent and how firms can develop a structured hiring approach.

[00:59] John’s journey from executive search to private equity, his role at SBJ Capital, and their investment focus.

[02:22] PE firms sometimes push beyond their core mandate. The importance of patience and focusing on strengths.

[04:48] Why internal talent functions are critical. Managing over 45 searches across 12 portfolio companies in a year.

[06:46] How SBJ Capital partners with investment professionals to refine hiring criteria and streamline recruitment.

[09:11] Building trust with portfolio executives to ensure hiring aligns with their company’s needs.

[11:15] The importance of hiring PE-experienced executives with adaptability and strategic leadership skills.

[13:36] Acting faster on hiring mistakes and recognizing early signs of a mis-hire.

[14:46] The cultural impact of hiring at the fund level and promoting from within.

[17:16] Using industry experts to source deals via the Origination Partner Program.

[19:38] The program has sourced 50-100 deals in 18 months, contributing to SBJ Capital’s deal pipeline.

[21:11] Working with former CEOs and advisors to generate proprietary deal flow.

[23:08] Recommended reads and podcasts: The Catalyst by Jonah Berger, ParkerGale’s PE Funcast, and SmartLess.

[25:29] How to connect with John via LinkedIn or email.

[27:20] Final thoughts on diversifying deal sourcing and ensuring strong talent strategies.

[27:50] Closing remarks and call to action to subscribe.

Thank you for tuning in!

Connect with John here.

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.

Welcome to The Private Equity Podcast, by Raw Selection, hosted by Alex Rawlings. In today's episode, Jordan Burton shares his expertise on hiring, training, and evaluating executives. They discuss common mistakes private equity firms make when hiring portfolio executives, how to improve interview techniques, and the critical role of structured assessment. Jordan also covers the importance of preparing for interviews, aligning stakeholders, and ensuring a thorough evaluation process.

Breakdown:

[00:00] Introduction to the episode and guest Jordan Burton. Overview of hiring and interviewing in private equity.

[00:28] The importance of preparation before an interview. Defining the role clearly and aligning expectations among stakeholders.

[01:26] The biggest hiring mistakes in private equity. Why many firms fail to achieve more than a 30% success rate in portfolio hiring.

[02:52] Understanding your role in the hiring process. Avoiding generic questions and ensuring structured, targeted assessments.

[04:20] How to create an effective scorecard. The value of assessing current leadership strengths and defining key success traits.

[06:15] The impact of investor dynamics on hiring success. Recognizing patterns in successful executives and adapting selection criteria accordingly.

[07:42] Why “been there, done that” is a flawed hiring approach. Focusing on upward trajectory and capability over past roles.

[09:05] The importance of structured note-taking during interviews. Ensuring consistency in feedback and preventing redundant questioning.

[11:00] How curiosity and active listening improve interviews. Creating a strong rapport to uncover valuable insights.

[12:30] Balancing assessment with selling the opportunity. Tailoring your pitch based on the candidate’s motivations and priorities.

[14:54] What truly differentiates a PE firm in hiring. How to stand out beyond compensation and equity offers.

[17:21] The role of portfolio executives in recruiting. Leveraging their experience to attract and evaluate top talent.

[19:49] Why most private equity investors are never trained in interviewing. Steps firms can take to develop better hiring processes.

[21:41] How to ask better interview questions. Moving beyond hypothetical questions to uncover real insights.

[24:02] Identifying red flags in executive candidates. Evaluating openness, honesty, and past performance patterns.

[27:25] The importance of conducting rigorous reference checks. Selecting the right references and verifying past performance.

[30:20] Post-interview best practices. Consolidating feedback and structuring hiring decisions effectively.

[35:50] The final hiring decision. Aligning stakeholders and ensuring a structured decision-making process.

Thank you for tuning in!

You can connect with Jordan Burton on LinkedIn by visiting his profile here.

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com

Welcome back to the Raw Selection Private Equity Podcast. Today’s guest is Ron Ramanujan, Technology Transformation Operating Partner, discussing value creation, tech transformation, AI, and cybersecurity within Private Equity.

Breakdown:

{00:30} Ron shares his background, highlighting his extensive experience in enterprise technology, data infrastructure, machine learning, and his time at BCG.

{01:28} Discussing common mistakes in private equity, Ron emphasizes that financial engineering alone is no longer sufficient. He highlights the need for early action post-acquisition, leveraging technology, and focusing on value creation from day one.

{02:55} The importance of assessing pricing models, margins, and customer experience early in the investment cycle. Ron explains how digital transformation is now a non-negotiable factor for success in private equity.

{04:51} Value creation in private equity is often overused as a term. Ron discusses the shift from traditional financial optimization to technology-driven strategies that generate real business impact.

{06:16} The role of technology in private equity investments. Ron emphasizes evaluating a target company's tech infrastructure during due diligence and ensuring early integration of digital strategies to maximize growth potential.

{08:08} Lessons learned from prior acquisitions—Ron talks about prioritizing high-value use cases, setting clear milestones, and the importance of aligning operational and technological strategies.

{09:58} The need for a structured, repeatable framework for tech integration in portfolio companies. Ron explains how operational and tech transformation must go hand in hand to drive efficiencies.

{12:22} AI’s impact on private equity—how AI-driven solutions can reduce customer churn, optimize costs, and create competitive moats for portfolio companies.

{14:08} AI trends and applications—Ron explains how generative AI is transforming businesses, highlighting its impact on productivity, customer service, and operational automation.

{16:30} The importance of AI governance and risk management. Ron discusses creating structured frameworks, setting guardrails, and ensuring responsible AI adoption without stifling innovation.

{18:25} Experimentation in AI is key—private equity firms must embrace a culture of testing, failing, and iterating to remain competitive in a rapidly evolving market.

{19:50} Playbooks for AI in private equity—Ron suggests frameworks that firms should establish at a portfolio level, including AI-driven financial reporting, operational efficiencies, and customer analytics.

{23:35} Cybersecurity in private equity—Ron warns that cybersecurity is often overlooked, yet it poses a significant existential risk to businesses. PE firms must incorporate cybersecurity assessments into due diligence.

{25:59} Emerging cybersecurity threats—Ron discusses advanced cyber threats, including internal dwellers and nation-state actors, emphasizing the need for proactive security measures.

{27:51} Balancing cybersecurity investments—Ron explains how firms can protect their assets without over-engineering security solutions, ensuring efficiency and risk mitigation.

{28:21} Ron’s reading recommendations—he shares his interest in AI, human neuroscience, and the book Why Machines Learn, which explores the evolution of AI through mathematics.

{31:09} Alex thanks Ron for his insights into AI, cybersecurity, and value creation in private equity.

Thank you for tuning in!

Connect with Ron here.

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podca