At a big 4. Thinking of starting a new firm focused on PE value creation. Anyone contemplating or thought through a similar move?

I’m not sure if B4 is really the powerhouse when it comes to PE value creation. Even our strategies side don’t seem to be the go to anymore.

I’m a former 2 time series A startup cofounder and advising an AI startup now so I have personal experience in this space.

Hi P1, my thought is a new and nascent PE firm will likely play in the early stage / startup arena, with creative revenue models, and high touch service. Not really competing with B4, but leveraging the experiences and brand.

Yes

LET'S DO IT!!
I know of a couple other who have been dabbling with some creative ideas in this space. Will love to chat if you would like.

I’m at a PE backed AI consulting firm, big4 is so out of league in this, (I’m ex Deloitte). PE is also lost in services, so it evens out..

Yolo

We can’t even justify the cost of our services, let alone create value. Good luck to you, you will do great without being weighed down

I feel like every PE firm does this already? What are you bringing to the table that they can’t? Sounds like a small fish/ big pond play

Is the thought that PE firms are leveraging a bunch of gray hairs to horse whisper into the ears of start up execs, and that a firm that could compile the gray hairs plus bring execution would deliver value and results more quickly?

Yes

I think we need to drive execution and be free to take more gainshare models. Approach has to be deeply tailored to issues and industry in question, with added ability to backstop management and derisk execution. I'd put up personal capital in situations where I'd get involved.

Not imagining large pyramids. But I think it'd have to be complementary skillset of experienced folks who can drive results. Make money on value delivered.

Every big4, MBB and Boutique I know in the PE space do gainshare models.

Serious questions as I have thought about this, but never figured it made sense. What’s the advantage of being in your own small firm? You have to handle all the admin, pay any staff during any slowdowns, try to recruit good people to a place without a brand, and if you offer multiple services / expertise, you need to make sure all your partners can execute top notch. If you have a book of PE business, it seems to me that it is easier to grow / service it from inside a firm. If you don’t, it will be much tougher to build w/o a platform. I have a book of PE business, but using it relies on having strong people in various specialties / industries to support the funds.

What geo are you in? I do a lot of Value creation in PE focus ops / SC. Principal at OW in Europe