BMC Logo 2024

Leveraging PitchBook and BlackmoreConnects for Landing LMM and MM PE Roles

Written By: Gerald O’Dwyer IIThe PE Guru — Blackmore Partners, Inc | December 5th, 2024

This comprehensive manual outlines how executives can strategically use PitchBook, BlackmoreConnects conferences, workshops, and masterminds to gain a competitive edge in pursuing lower middle market (LMM) and middle market (MM) roles with PE-owned companies. This includes board roles, advisory positions, and executive-level roles. The guide provides actionable strategies, detailed cost comparisons, and exhaustive reasoning for maximizing these tools to secure meaningful opportunities in private equity.

Section 1: The Role of PitchBook in Landing PE Roles

What is PitchBook?

PitchBook is a leading private equity and venture capital research tool providing detailed insights into:

  1. PE firm portfolios.
  2. Key decision-makers.
  3. Deal activity and historical performance.
  4. Industry and market trends.
  5. Valuations and acquisition multiples.

50 Reasons to Use PitchBook for LMM and MM PE Roles

  1. Identify target PE firms in your desired industries.
  2. Access data on PE firms’ investment theses.
  3. Analyze historical deal trends by PE firms to assess fit.
  4. Find portfolio companies in your area of expertise.
  5. Research key decision-makers (e.g., managing partners, principals).
  6. Uncover recent acquisitions to gauge active dealmakers.
  7. Evaluate fund performance for targeted firms.
  8. Study average acquisition multiples in your sector.
  9. Gain insights into exit strategies and timelines.
  10. Find board and advisory role opportunities in portfolio companies.
  11. Assess industry consolidation trends.
  12. Pinpoint firms with a history of hiring external executives.
  13. Map out geographical investment trends.
  14. Identify new funds actively raising capital.
  15. Track historical hiring patterns in portfolio companies.
  16. Spot cross-border M&A activity.
  17. Discover fragmented markets ripe for roll-ups.
  18. Examine financing structures and deal sizes.
  19. Understand competitive dynamics in targeted industries.
  20. Monitor economic cycles affecting PE investments.
  21. Gain insights into valuation drivers for your niche.
  22. Study due diligence reports for actionable intelligence.
  23. Assess cultural alignment with PE firms through prior deals.
  24. Identify mid-market firms scaling towards MM strategies.
  25. Explore bolt-on acquisition strategies for portfolio companies.
  26. Cross-reference company executives to hiring trends.
  27. Build a thesis aligning your expertise with PE strategies.
  28. Study debt and equity structures for financial modeling.
  29. Research capital allocation strategies.
  30. Leverage financial ratios for company analysis.
  31. Study competitor portfolios for potential synergies.
  32. Target growth industries with increased PE investment.
  33. Track PE firms’ ESG initiatives for cultural alignment.
  34. Study performance metrics for industry benchmarks.
  35. Find underperforming portfolio companies needing restructuring.
  36. Build a list of PE firms managing funds in your industry.
  37. Track funds nearing exits for succession opportunities.
  38. Pinpoint potential industry disruptors.
  39. Analyze technology adoption rates in specific sectors.
  40. Track cost structures and margins in portfolio companies.
  41. Understand innovation and R&D trends.
  42. Research PE firms’ strategic partners.
  43. Identify regional economic incentives affecting deals.
  44. Analyze sector-specific regulatory environments.
  45. Study operational KPIs across industries.
  46. Examine post-merger integration practices.
  47. Explore competitive PE firms’ investment horizons.
  48. Map out company decision-making structures.
  49. Find upcoming conferences with PE decision-makers.
  50. Build targeted email campaigns to engage decision-makers.

Costs of Not Using PitchBook

Without PitchBook, executives risk:

  • Wasting time on broad, untargeted outreach.
  • Missing key decision-makers critical to hiring.
  • Overlooking niche opportunities or relevant industries.
  • Inaccurate market assessments during interviews or due diligence.
  • Inability to develop a compelling, data-driven investment thesis.

PitchBook Cost: $28,000/year (or less with group access).
Cost of Not Using PitchBook: Missed roles, opportunities, and potential earnings ranging from $500K-$1M per role.

Section 2: BlackmoreConnects as the Ultimate Competitive Edge

Conferences

  • Networking: Direct engagement with 10-15 PE firms per conference.
  • Panels: Insightful discussions from decision-makers.
  • Connections: Build rapport with over 30-50 executives and 60-150 PE firms annually.

Workshops

  • Focused on strategies to align with PE hiring trends.
  • Role-playing interviews for board, advisory, and C-suite roles.
  • Mastering the language of PE through investment theses and KPIs.

Masterminds

  • Peer learning and feedback.
  • Sharpening executive brand and pitch.
  • Guidance from industry veterans and BlackmoreConnects facilitators.

Section 3: Using PitchBook + BlackmoreConnects Together

Strategies

  1. Target PE Firms:
    • Use PitchBook to identify firms aligned with your expertise.
    • Approach these firms directly during BlackmoreConnects conferences.
  2. Develop Investment Theses:
    • Base your thesis on data from PitchBook.
    • Present it during workshops and mastermind sessions for feedback.
  3. Prepare for Conversations:
    • Use PitchBook to learn about a firm’s portfolio and align your expertise with their needs.
    • Leverage workshops to rehearse discussions.
  4. Due Diligence:
    • Analyze PE firm trends, acquisitions, and multiples using PitchBook.
    • Engage with BlackmoreConnects peers to refine insights.
  5. Follow-Up Outreach:
    • Use targeted introductions from BlackmoreConnects.
    • Reinforce connections with tailored follow-up emails referencing PitchBook data.

Section 4: Alternatives and Comparisons

Method

Cost

Pros

Cons

PitchBook

$28,000/year

Comprehensive data, PE focus

High cost

Cyndx

$18,000/year

AI-driven deal sourcing

Limited to sourcing

DIY Research

Free-$5,000/year

Low cost

Time-intensive, incomplete data

Other Conferences

$1,000-$5,000/event

Networking

No guaranteed PE focus

BlackmoreConnects

$1,000-$6,000/event

Targeted PE networking, measurable ROI

Requires personal engagement

Section 5: Building Relationships with PE Decision-Makers

Who Are the Decision-Makers?

  1. Managing Partners
  2. Principals
  3. Operating Partners
  4. Portfolio Company CEOs and CFOs

How to Reach Them:

  1. Attend BlackmoreConnects conferences to engage directly.
  2. Use PitchBook to find their contact information.
  3. Personalize outreach using insights from PitchBook.
  4. Build relationships over time through consistent engagement.

Section 6: Case Studies and Success Stories

Case Study 1: Landing a Board Role

  • Executive Background: Experienced in manufacturing.
  • Approach: Used PitchBook to identify PE firms in the automotive sector. Attended a BlackmoreConnects conference, pitched a value-add board position, and landed a role in 90 days.
  • Outcome: $120,000 annual compensation + equity.

Case Study 2: Advisory Role via BlackmoreConnects

  • Executive Background: Former tech CEO.
  • Approach: Attended workshops to develop a compelling pitch, used PitchBook for due diligence, and targeted 3 PE firms through a conference.
  • Outcome: $200,000 annual compensation + bonus opportunities.

Section 7: Action Plan

  1. Subscribe to PitchBook: Allocate budget and get trained on usage.
  2. Join BlackmoreConnects: Commit to at least 3 full conferences.
  3. Develop a Thesis: Leverage PitchBook and workshops to align expertise with PE needs.
  4. Engage Actively: Network, follow up, and maintain relationships with PE firms.
  5. Refine Strategy: Use masterminds to adapt and grow.

Conclusion

Combining PitchBook with BlackmoreConnects creates a powerful synergy for landing competitive roles in LMM and MM private equity. The data-driven insights of PitchBook, paired with the targeted networking opportunities and learning platforms of BlackmoreConnects, equip executives to stand out and succeed in the PE landscape. The costs of not investing in these tools far outweigh the potential career gains and earnings they unlock.