Investors & Operators

Topics:Fundraising Lessons from a $1.6B FundA Carve-Out Playbook That ScalesWhy You Need a One-Page Strategy...and so much more. Top TakeawaysKeep strategy simple. Instead of 50-slide strategy decks, Chris insists on a one-pager with two to four clear priorities. Every team member, from associate to partner, should be able to recite them. Simplicity drives alignment and execution.3 actionable tips for hiring executives. First, focus on three traits: intelligence, hustle, and the ability to lead. Second, use third-party assessment tools to better evaluate candidates. Third, test humility in real life. At Pacific Avenue, that means taking candidates out to a meal and watching the small interactions. If someone can’t treat people well in everyday settings, they won’t be a good leader inside the company.Make it safe to fail, so you can win consistently. Pacific Avenue’s rule: surface mistakes quickly, fix them, and move on. In fundraising, it’s asking for genuine feedback when LPs push back and refining the pitch. In operations, it’s changing course when a carve-out plan isn’t working. As Chris puts it, “It’s okay to be wrong. It's not okay to stay wrong.”Look at the past to plan the future. When assessing carve-outs, Pacific Avenue starts by asking: What did this business look like before the corporate parent? Often, it was a strong, growing standalone that later got deprioritized. That history matters because if the business thrived once, there’s a strong case it can thrive again with the right strategy.About Chris SznewajsChris Sznewajs is the Managing Partner and Founder of Pacific Avenue Capital Partners. A veteran investor in complex carve-outs and special situations, he brings decades of experience in private equity and operational turnarounds. Before launching Pacific Avenue in 2018, he was a Principal at The Gores Group and began his career in Bain & Company’s restructuring practice. About Pacific Avenue Capital PartnersPacific Avenue Capital Partners is an LA-based private equity firm focused on middle-market carve-outs, corporate divestitures, and other complex situations. The firm works hand-in-hand with management teams to unlock value through operational improvements and growth strategies. With the rapid close of its $1.6B Fund II in under four months, Pacific Avenue now manages over $3.8B in AUM.

Topics:Hybrid Model: PE + Search FundA Strong Operator ProfileEquity & Structure in Operator Deals...and so much more.Top TakeawaysSuccession is one of the biggest overlooked opportunities in the lower middle market. Over 50% of small business owners in the U.S. are nearing retirement age, but many lack a clear succession plan. For investors and operators, that’s an opportunity. Firms like Novastone Partners are targeting founder-owned businesses with $15M–$40M in enterprise value, where the right leadership transition can unlock serious value.Founders trust operators who’ve walked in their shoes. Founders want someone they can trust to take over. That’s why industry veterans often have an advantage. Operators in their 40s or 50s, with 20+ years in the same industry, can have peer-to-peer conversations with sellers from day one. They’re seen as real successors, not just financial buyers.The search will test you more than the acquisition itself. The search phase is where most aspiring buyers drop off. It’s long, unstructured, and full of dead ends. Even great operators can struggle if they underestimate how different sourcing is from leading. Don’t go it alone. Look for models like Novastone’s that offer salary, hands-on deal support, and a team to help with sourcing, outreach, and diligence. About Maxwell TaylorMaxwell Taylor is Managing Director at Novastone Partners, where he leads operator selection, platform development, and deal execution. With a background in private equity and experience working with mid-career executives, Max helps bridge the gap between operators and business ownership. About Novastone PartnersNovastone Partners is an operator-led buyout firm focused on solving the succession crisis in the lower middle market. The firm backs experienced industry executives to acquire and grow founder-owned businesses with $15M–$40M in enterprise value. Since 2020, Novastone has backed over 70 operators and closed 24+ acquisitions.

Topics:Pre-LOI: How Independent Sponsors Win DealsLOI Execution: Structure, Risks, MistakesGood vs. Bad Post-LOI DiligenceWhat Attracts and Repels Capital...and so much more.Top TakeawaysRollover is your edge against strategics. Strategic buyers often can’t offer it. Independent sponsors can—that’s your edge. Typical range is 10–40%, and when structured well, the second bite can be worth more than the first. It aligns incentives, keeps sellers engaged, and shows you’re building with them instead of just buying them out.An LOI isn’t a victory if it’s not fundable. Signing an LOI with mispriced risk, unrealistic earnouts, or soft terms might feel like a win, but it’s not fundable. Capital partners will walk, and worse, re-cutting terms after signing can fracture trust with the seller. John’s advice: pressure-test your LOI with capital providers before it reaches the seller’s desk. Call out red flags early—or risk killing the deal later. Strong diligence starts with a clear timeline, experienced advisors, and structured checkpoints to raise red flags before they become roadblocks. John warns that bad diligence often means avoiding tough conversations about risk. If you're not surfacing problems early, you're setting yourself up for failure post-LOI.Stay exit-ready from day one post-close. Even if you’re planning to hold for five years, act like you’ll sell in two. That means clean financials, documented systems, and clear growth metrics. You never know when the perfect buyer will come knocking. The sponsors who are prepared are the ones who cash in early.Choose advisors who know the IS model, not just deals in general. John shares that many first-time independent sponsors make the mistake of hiring advisors who don’t understand the nuances of independent sponsor deals, like capital stack structuring or running a capital raise alongside diligence. Look for professionals who have worked on multiple independent sponsor transactions and understand the pressure points before and after the LOI.About John KoeppelJohn Koeppel is a Partner at Lippes Mathias, where he leads the firm’s Private Equity and Independent Sponsor practice. With 25+ years of experience, John has structured and closed 250+ deals ranging from $5M to $250M+. His work has earned recognition from Best Lawyers in America, Chambers USA, and Super Lawyers.About Lippes MathiasLippes Mathias is a full-service law firm that advises independent sponsors, family offices, and institutional investors throughout the full lifecycle of a transaction—from LOI to exit. Known for its deep transactional experience and business-first mindset, the firm is a trusted legal partner to dealmakers across the lower middle market and beyond.

Topics:Why Sellers Walk Away Last MinuteHow to Avoid Post-Sale RegretWhy Early Exit Planning Matters...and so much more.Top TakeawaysSelling a business is more than just a transaction. Most owners think they’re ready to sell—until they realize they’re walking away from more than just a company. Their business has been their routine, their problem to solve, their social circle, and their purpose. Without it, what gets them out of bed in the morning? That uncertainty breeds fear and hesitation, leading sellers to unconsciously derail deals with impossible demands. Denise emphasizes that the smoothest exits are both financially prepared and emotionally planned.M&A needs a human touch. For many owners, selling a business isn’t just a transaction. It’s letting go of something they built, nurtured, and sacrificed for. Yet, M&A language couldn’t be colder. Getting a “tombstone” to mark the sale can feel tone-deaf to someone selling their life’s work. Denise and Jordan agree: a little empathy, thoughtful communication, and recognizing the emotional weight of an exit can make the seller feel respected and understood.The key to a happy exit? Planning early. Most owners wait too long to think about selling—until burnout, personal changes, or an unexpected offer forces a rushed decision. The happiest exits happen when owners plan years in advance. Denise advises starting with two key steps: define what a successful exit looks like for you and identify what work provides beyond money. The sooner you know what you’ll need to replace, the smoother the transition will be.About Denise LoganDenise Logan knows what keeps business owners up at night. A former lawyer, mental health professional, and entrepreneur, she helps founders navigate the emotional side of selling their businesses. Her bestselling book “The Seller’s Journey” explores why owners struggle to let go and how advisors can help them transition smoothly.

Topics:How to Free Up Leadership BandwidthThe Power of Mission, Vision & ValuesPitfalls in Implementing The Management System...and so much more. Top TakeawaysWant more freedom? Get more structure and discipline. Many founders resist structure, fearing it will slow them down. In reality, a well-defined system brings clarity, accountability, and autonomy. As an SMB founder, Michael knows firsthand that clear roles and a problem-solving framework allow companies to move faster and focus on growth instead of firefighting. Vern describes The Management System as liberating. It removes dysfunction and unnecessary complexity, creating an environment where talented people can thrive.Middle management is the backbone of scalable companies. Great companies scale by empowering middle management, not by keeping decisions at the top. The Management System ensures that middle managers understand the bigger vision, their role in achieving it, and how their success is measured. And if someone resists this level of accountability and transparency, the system reveals it fast. Efficient teams track fewer metrics—and get more done. Vern suggests ditching 50-slide reports for clear, actionable tools. Tracking sheets keep teams focused on 10 or fewer key metrics—green means you’re on track, red means it’s time to act. Tools like the A3 condense problem-solving into a one-page plan outlining the issue, root cause, and next steps. With these tools, teams leave meetings not just informed, but aligned and ready to execute.Teamwork makes the dream work. Podcasts and books often highlight solo journeys to success, but Michael emphasizes that true success comes when a team unites for something bigger than themselves. What matters more than personal wins is a shared mission and a willingness to support each other through the highs and lows. When a group shares that purpose, success follows naturally.Recommended Reads from This Episode“Accelerating Growth” by Vern Davenport: Unpacks how a structured system can help companies scale by improving execution, accountability, and leadership alignment.“Getting the Right Things Done” by Pascal Dennis: Teaches how to apply lean management principles to eliminate inefficiencies.“The Founder’s Dilemma” by Noam Wasserman (Harvard Business Review article): Explores the trade-off between control and financial success that founders face as they scale.About Vern DavenportVern Davenport is a partner at QHP Capital, a growth equity firm focused on tech-enabled life sciences and pharma services. He created The Management System, a structured framework designed to scale businesses. With executive leadership experience at Misys Healthcare, Medfusion, M*Modal, and Allscripts, Vern specializes in business transformation and operational execution.About Michael CurryMichael Curry is the co-chairman and co-CEO of Lullwater & Co., an investment firm specializing in entrepreneurship through acquisition. A search funder turned investor, he is an experienced operator in the healthcare space. Michael scaled a healthcare services company through M&A and is now focused on building the next stage of his investment firm.Disclaimer:The opinions expressed herein are those of QHP Capital, L.P. (“QHP Capital”) and are subject to change without notice. Past performance is not indicative of future results. QHP Capital is a registered investment adviser with the U.S Securities and Exchange Commission. Registration does not imply a certain level of skill or training.

Topics:Why PE Should Hire VeteransNavigating the Challenges of Growing CompaniesHow Mentors Play a Role in Breaking into PE...and so much more.Top TakeawaysWhat do your company and a brontosaurus have in common? As businesses grow, founders often struggle with transitioning from generalist roles to more focused leadership. Professor Carter Cast’s HBR article describes the Dinosaur Diagnostic that uses the brontosaurus' long neck to illustrate the growth curve. This diagnostic helps you pinpoint when it’s time to hire functional experts and stick to just your leadership hat. Understanding when and how to make this shift is essential for setting a company up for scalable success.Acquisitions often stumble when integration begins. To avoid the "merger of equals" trap, establish clear leadership early, define KPIs, and integrate companies under one unified identity. Without proper management and measurable goals, acquisitions risk chaos, with overlapping teams and conflicting cultures. A dedicated integration team ensures smooth execution and helps keep everything on track.Tip for transitioning veterans: start early and build a strong network. Transitioning from military to civilian life takes planning, so start at least a year in advance. Also, a mentor can make the process smoother by providing guidance and industry insights. In mentoring sessions, be ready to connect your military skills to civilian roles and ask thoughtful questions that show your genuine interest in the industry. With the right support, veterans can thrive in finance, offering fresh perspectives and strong leadership.About Paul W. Swaney IIIPaul W. Swaney III is a seasoned industrials investor and founder of Swaney Group. His diverse background spans military service in the U.S. Navy, roles at McKinsey & Company, and Amazon. Paul is passionate about supporting veterans transitioning to civilian careers through initiatives like SkillBridge. He is also the host of the LeverUp podcast, a community dedicated to demystifying banking, consulting, and PE for young professionals.About Swaney GroupSwaney Group is a private equity firm with a focus on the industrial sector. The firm revitalizes struggling businesses and enhances successful ones through its proprietary Swaney Group Operating System (SGOS). SGOS optimizes management, tech systems, and culture to maximize value for both portfolio companies and investors.