Welcome back to the Alt Goes Mainstream podcast.
Today’s episode is with one of the executives who has helped to build one of the industry’s leading alternative asset managers.
We sat down in Permira’s London office with Co-CEO Dipan Patel to discuss the firm’s evolution and how the business has grown to over €80B in AUM.
Dipan brings a deep background in private equity investing to bear as he and his Co-CEO Brian Ruder now lead the firm through its next phase of growth.
Dipan joined Permira from Gores Group and is Co-Managing Partner and Co-CEO of the firm. He serves on Permira Holdings Limited Board and Permira’s Investment Committee and Executive Committee. He’s focused on technology and services investing, working on deals such as Renaissance Learning, Informatica, Axiom, AllTrails, Ancestry, LegalZoom, and more.
Dipan and I had a thought-provoking conversation about what it takes to build and run a scaled alternative asset manager and how to differentiate a firm and a culture. We discussed:
The founding story of Permira and the evolution of the firm since spinning out of Schroder Ventures in 1996.
How the firm’s beginnings have shaped the culture that has been built and how that culture has permeated how they make investment decisions, work with companies, founders, and LPs.
How would an LP underwrite Permira’s culture?
How the firm’s European heritage helps as an investor.
The opportunity set in Europe.
The investment culture at Permira and how its structure and set up helps investment processes and decision-making.
Why software buyouts have become a larger part of the buyout investing landscape.
How AI is impacting software investing and how AI is impacting services businesses.
Why the firm has expanded into credit.
The thought process behind launching a wealth solutions business, Permira Wealth, and how it reflects the culture of the firm.
Thanks Dipan for coming on the show to share the evolution of Permira and your expertise and wisdom in private markets.
Clip #1: Why strong founders can be transformational for companies.
Clip #2: How does the right culture lead to better decision-making?
Clip #3: “An obsession with growth in our portfolio companies.”
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at gharris@ultimusfundsolutions.com.
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Message from Ultimus, our Sponsor
01:55 Welcome to the Alt Goes Mainstream Podcast
03:42 Introducing Dipan Patel
03:47 Discussing Distributions
04:24 Selling A-Grade Businesses
05:08 Flight to Quality in Investments
06:49 Reflecting on Career Beginnings
08:04 Lessons from Arthur Andersen and Lehman Brothers
09:56 Challenges in Today's Investment World
11:24 Underwriting in Unpredictable Times
12:01 Basics of Private Equity
17:36 Importance of Market Leadership
18:21 Backing Strong Founders
19:55 Permira's Co-Leadership Model
20:23 Permira's Origin Story
23:48 Investment Decision Process
25:35 Underwriting Character in Executives
27:15 Learning from Mistakes
27:49 Underwriting Permira's Character
28:02 Understanding Your Identity
28:39 Building a Strong Culture
29:02 Thriving in Chaos
29:20 Anti-Fragility Concept
29:43 Learning from Mistakes
30:15 Capital Flows in Private Markets
30:43 Delivering Returns to Investors
30:57 Developing Investment Theses
31:33 Exit Strategies
32:10 Supply Creates Demand
32:39 Educating Investors
33:23 Access to Private Markets
33:44 Managing Risk and Returns
35:12 Navigating Industry Evolutions
35:50 Staying Focused
36:22 Balancing Growth and Differentiation
38:23 Investing in Growth and Buyout
39:50 Synergies in Investment Strategies
41:18 Managing Risk in Investments
44:07 Platform Shifts and AI
44:30 Disruption vs. Destruction
45:31 Investing in Incumbents vs. Disruptors
46:47 Control in Private Equity
48:15 Adapting to AI
56:07 Future Investment Ideas
Editing and post-production work for this episode was provided by The Podcast Consultant.
