Breaking Into Private Equity as a Lower Middle Market Executive: How to Position Yourself for a $3–$6M Payday

Written By: Gerald O’Dwyer II The PE Guru — Blackmore Partners, Inc | December 13th, 2024

As Michael Jordan said:
“Some people want it to happen, some wish it would happen, others make it happen.”
It’s time to make it happen. Invest in yourself, practice on the court, and take the steps needed to stand out in the competitive world of private equity.

Breaking Into Private Equity as a Lower Middle Market Executive: How to Position Yourself for a $3–$6M Payday

For executives in the lower middle market (LMM), transitioning into running a private equity (PE)-owned portfolio company with equity isn’t just a career move—it’s a life-changing opportunity. Equity at exit, often worth $3–$6M or more, is the ultimate payoff for executives who know how to position themselves as value creators and stand out in a competitive field.

But getting into PE isn’t about applying for a job—it’s about becoming someone PE firms want to bet on. This article explores all the ways to stand out, why being “on the court” matters, and the steep costs of not investing in your learning and personal brand as economic conditions shift.

Why Equity Roles in PE Are a Game-Changer

Private equity roles are distinct from corporate jobs:

Wealth Creation: Equity gives you a direct stake in the company’s success, with payouts tied to achieving aggressive growth and valuation goals.
Strategic Leadership: These roles demand visionary leadership aligned with a PE firm’s investment thesis and exit timeline.
Fast-Paced Impact: PE is high-pressure, high-reward, and requires an ability to deliver results quickly.

Executives who excel in PE don’t just run businesses—they create value for investors, ensuring lucrative exits.

How to Stand Out to PE Firms

To get on a PE firm’s radar, you need to stand out by acting, thinking, and presenting yourself as one of them. Here’s how:

1. Develop a Deal Sourcing Mindset

PE firms value executives who can bring opportunities to the table, such as acquisitions or strategic partnerships.
How to Do It:
- Build relationships with brokers and investment bankers.
- Leverage tools like PitchBook and Cyndx to identify potential targets.
- Demonstrate an ability to align deals with PE investment theses.

2. Speak Their Language

PE professionals prioritize metrics like EBITDA, IRR, synergies, and multiples.
How to Do It:
- Replace corporate jargon with terms PE firms care about.
- Use concrete metrics when describing achievements: “Improved EBITDA by 25% through operational efficiencies.”

3. Craft a Deal Thesis

A deal thesis demonstrates your strategic thinking and understanding of value creation.
How to Do It:
- Identify an industry or niche with consolidation opportunities.
- Create a one-page thesis outlining how you’d grow and scale a business in that space.

4. Convert Your Resume into a PE Version

A traditional W2 executive resume won’t resonate with PE firms.
How to Do It:
- Highlight P&L responsibility, EBITDA growth, cost-saving initiatives, and exit preparation.
- Quantify results: “Drove a 3x return on invested capital through market expansion and margin improvements.”

5. Build a Network of PE Relationships

Relationships are the lifeblood of PE. Being visible to PE decision-makers can open doors.
How to Do It:
- Attend ACG Conferences and BlackmoreConnects events.
- Proactively connect with operating partners, managing directors, and portfolio company leaders.

6. Act Like an Investor

PE firms don’t just want operators; they want investor-operators.
How to Do It:
- Demonstrate a focus on enterprise value, not just operational excellence.
- Share examples of strategic decisions you’ve made that enhanced valuation.

7. Develop PE-Specific Skills

Understanding the private equity lifecycle is crucial.
How to Do It:
- Learn about acquisition, integration, value creation, and exit phases.
- Highlight experience in M&A, post-acquisition integration, or financial optimization.

8. Be a Problem-Solver

PE firms face challenges like managing tight timelines, aligning teams, and mitigating risks.
How to Do It:
- Share examples of how you’ve solved complex problems under pressure.
- Emphasize resilience and adaptability.

Why Being on the Court Matters

Success in PE isn’t just about preparing behind the scenes—it’s about showing up, being seen, and practicing in the real-world arena. This is where ACG Conferences and BlackmoreConnects come in.

1. The Power of Real Engagement

Conferences put you face-to-face with PE firms, giving you the opportunity to refine your pitch and learn from every interaction.
Being visible in the PE ecosystem builds credibility and trust.

2. The Cost of Missing Opportunities

Missing even one connection can cost you the role—and the payday—of a lifetime.
If your goal is a $3–$6M equity payout, failing to invest in networking could mean losing out on millions.

3. Practice Makes Perfect

Just like athletes refine their skills on the court, executives must practice interacting with PE firms.
Every conference, meeting, or introduction is an opportunity to refine how you present yourself and build confidence.

Psychological Barriers to Investing in Yourself

As adults, we often fall into patterns that make investing in personal growth challenging:

Comfort Zone: Staying in familiar territory feels safe but prevents growth.
Fear of Failure: Worrying about not being “good enough” to break into PE can hold you back.
Procrastination: Waiting for the “right time” only delays progress.

Why You Need to Overcome These Barriers

In a downturn, competition for PE roles intensifies. Those who invest in themselves and their personal brand stand out as proactive, strategic, and ready to lead.

The Economic Cost of Not Investing

In uncertain economic times, failing to act can be more expensive than the cost of conferences or training. Here’s why:

Missed Opportunities: As companies tighten hiring, fewer roles will be available—and only the best-prepared candidates will land them.
Dilution of Talent Pools: Many executives will compete for fewer positions, making differentiation critical.
Loss of Earning Potential: Missing an equity role means forfeiting potential payouts of $3–$6M or more.

Start Your Journey Today

Breaking into PE is a 12–24 month process that requires consistent effort and investment in your brand. Here’s how to get started:

Commit to Learning: Attend ACG Conferences and BlackmoreConnects events to immerse yourself in the PE ecosystem.
Refine Your Narrative: Rework your resume, develop a deal thesis, and practice speaking PE’s language.
Build Relationships: Prioritize networking with PE professionals and decision-makers.
Take Action: Adopt an investor-operator mindset and position yourself as someone who can drive value creation and deliver results.

Conclusion

Breaking into private equity isn’t just about landing a role—it’s about transforming how you think, act, and present yourself. By investing in your learning, personal brand, and network, you position yourself to not only secure a PE leadership role but also achieve the kind of equity payday that transforms careers and lives.

As Michael Jordan said:
“Some people want it to happen, some wish it would happen, others make it happen.”