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 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:
Thanks Dipan for coming on the show to share the evolution of Permira and your expertise and wisdom in private markets.
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 Introduction to our Sponsor, Ultimus
01:55 Welcome Back to the Alt Goes Mainstream Podcast
02:03 Introduction to Permira and our guest, Dipan Patel
03:47 Discussion on Distributions and Market Conditions
04:19 Selling A-Grade Businesses in Current Market
05:03 Flight to Quality in Times of Stress
06:07 Reflecting on Career and Lessons Learned
06:29 Early Career Experiences at Arthur Andersen and Lehman Brothers
07:29 Impact of Early Career on Leadership Style
09:04 Challenges in Today's Investment Environment
10:15 Underwriting in Unpredictable Times
10:45 Locating Good Companies for Investment
14:31 Importance of Market Leadership
14:59 Partnering with Founders and Executive Teams
16:22 Permira’s Co-Leadership Model
19:49 Investment Decision Process at Permira
21:02 Underwriting Character in Executives
22:54 Permira's Organizational Character and Culture
23:29 Understanding Organizational Culture
23:54 Thriving in Chaos: The Concept of Anti-Fragility
24:51 Capital Flows in Private Markets
25:26 Developing Investment Theses
25:54 Strategic Exit Channels
26:24 Supply Creates Its Own Demand
27:24 The Necessity of Access to Private Markets
28:10 Managing Stress Moments in Private Markets
28:50 Navigating Industry Evolutions
29:20 Focusing on Core Strengths
30:09 Balancing Growth and Differentiation
31:21 Investing in Growth and Buyout Businesses
32:26 Synergies Between Growth and Mature Businesses
33:38 Risk Spectrum in Investments
34:27 Understanding Runway and Market Position
35:42 Disruption vs. Destruction in AI
36:49 Investing in Platform Shifts
37:58 Control and Duration in Private Equity
39:08 The Role of AI in Incumbent Success
40:25 Cultural Adaptability to AI
42:21 Specialism vs. Generalism in Investing
43:56 Professional Services and AI
45:27 Future Investment Ideas
46:34 Mission Critical Investing
47:28 Conclusion and Final Thoughts
Editing and post-production work for this episode was provided by The Podcast Consultant.