What can I learn from Luis Solana’s experience?

Written By: Gerald O’Dwyer II The PE Guru — Blackmore Partners, Inc | December 27th, 2024

Private Equity Transition: Q&A for Executives

Section 1: Understanding the Basics

Q1: Why do I need an investment thesis to engage with private equity firms?

A: Private equity (PE) firms prioritize actionable opportunities over personal resumes. A well-defined thesis demonstrates that you understand the market, have a clear strategy, and can add value. It’s the first step in capturing their interest.

Q2: What is an investment thesis, and what does it include?

A: An investment thesis is a concise summary of your strategic plan for creating value in a specific industry or market. It includes:
- A clear sector focus.
- Quantifiable goals (e.g., revenue growth, EBITDA improvement).
- A unique value proposition based on your expertise.

Q3: Can I succeed in private equity without prior PE experience?

A: Yes. Many executives transition into PE by leveraging their industry expertise, operational experience, and strategic vision. Platforms like BlackmoreConnects provide the tools and networks to bridge the gap.

Section 2: Building and Refining the Investment Thesis

Q4: How do I start creating my investment thesis?

A: Begin by identifying a sector where you have deep expertise or a unique perspective. Research industry trends, target companies, and opportunities for value creation. Refine your thesis with specific metrics, such as revenue goals and margin improvements.

Q5: How long does it take to develop a compelling thesis?

A: It’s an iterative process. You may revise your thesis dozens of times based on feedback from peers, workshops, and PE firms. Aim for a crisp, 30-40 second pitch.

Q6: What mistakes should I avoid when presenting my thesis?

A:
- Focusing on yourself first: Start with the thesis, not your credentials.
- Being vague: Use specific numbers and goals.
- Ignoring PE firm priorities: Tailor your pitch to their interests.

Section 3: Networking with PE Firms

Q7: How do I connect with private equity firms?

A: Attend networking events, conferences, and mastermind groups like those organized by BlackmoreConnects. Build relationships by showcasing a strong thesis and engaging in meaningful conversations.

Q8: What should I expect during a “speed dating” session with PE firms?

A: You’ll have 10-15 minutes to pitch your thesis to PE representatives. Focus on your thesis, key metrics, and why your plan is compelling. Be prepared to answer questions and receive feedback.

Q9: How many PE firms should I aim to connect with?

A: Aim for a broad funnel—engage with 100-200 firms to find the right fit. It may take multiple conferences and follow-ups to identify interested partners.

Section 4: Overcoming Challenges

Q10: What if I don’t have a specific acquisition target yet?

A: Start with a sector focus and strategic goals. As you build your network and receive feedback, refine your thesis to include specific targets.

Q11: How do I manage the high volume of information and resources?

A: Prioritize what aligns with your goals. Platforms like BlackmoreConnects provide curated tools and guidance, but you’ll need to filter information based on your thesis and timeline.

Q12: What if I don’t get immediate interest from PE firms?

A: Persistence is key. Use their feedback to refine your thesis, expand your network, and continue building relationships. It’s a marathon, not a sprint.

Section 5: Commitment and Next Steps

Q13: How much time and effort does transitioning into PE require?

A: Success in PE demands significant commitment. Expect to invest months in developing your thesis, attending conferences, and engaging with firms.

Q14: What tools and resources should I leverage?

A: Use platforms like BlackmoreConnects for networking, PitchBook or Cyndx for market research, and workshops for refining your approach. Access to these tools can accelerate your progress.

Q15: How do I know if private equity is the right path for me?

A: Consider your willingness to commit time and effort, adapt to a new industry, and build long-term relationships. If you’re unsure, attend workshops or consult mentors to test the waters.

Section 6: Inspiration from Luis Solana’s Journey

Q16: What can I learn from Luis Solana’s experience?

A:
- Key Takeaways:
  - Focus on the thesis, not your resume.
  - Use feedback to refine your approach.
  - Network persistently to find the right fit.

Q17: What was Luis’s thesis, and why did it succeed?

A: Luis targeted the U.S.-Mexico 3PL sector in the auto industry, leveraging his supply chain expertise and nearshoring trends. His clear strategy and metrics resonated with PE firms.

This Q&A offers a practical guide for executives considering private equity, using real-world insights from Luis’s journey to demystify the process and set expectations. Let me know if you’d like to expand or focus on specific areas!