E288: Inside a PE Fund Ranked #1 in IRR, DPI, and TVPI

The podcast explores how Renovus Capital, a private equity firm, achieved success in fundraising and delivering returns. Jesse D. Serventi discusses Renovus's strategy of focusing on the lower middle market, buying founder-owned businesses with sub-$10 million EBITDA, and emphasizing purchase price. The firm's talent-focused approach, including a large team and a dedicated director of people, contributes significantly to their success. Renovus's portfolio construction involves starting with smaller investments and building positions over time, allowing for flexibility and learning. This strategy, combined with a long-term orientation, enables Renovus to improve business quality and EBITDA multiples, ultimately benefiting both the firm and the founders they partner with.

Outlines

Part 1: Fundraising Success, Market Strategy

Part 2: Team Building, Talent Density

Part 3: LP Relations, Capital Management

Part 4: Investment Philosophy, Long-Term Value

Part 5: Conviction, Firm Evolution

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How I Invest with David Weisburd

Part 1: Fundraising Success, Market Strategy

Renovus's Successful Fundraising: Timing, Strategy, and Team Dynamics

The "Secret Sauce" Behind Renovus's Alpha Capture: HEC Dow Jones Report

Playing the "Easy Mode": Renovus's Strategy and Team Advantages

Part 2: Team Building, Talent Density

Talent and Firm Evolution: The Exponential Growth Drivers at Renovus

Brand Impact and Transparency: Easing Capital Raising for Renovus

From Players to Coaches: Building a Talent-Driven Firm at Renovus

Talent Density and Entrepreneurial Spirit: Hiring for Innovation

Screening for Attributes: Renovus's Unique Hiring Approach

Part 3: LP Relations, Capital Management

Evolving LP Mix: From SBA Reliance to Diversified Institutional Base

Strategic LP Selection: Prioritizing Long-Term Stability and Growth

Portfolio Construction: Building Positions Over Time and Recycling Capital

Part 4: Investment Philosophy, Long-Term Value

Learning to Hold: Growing EBITDA and Improving Business Quality

Long-Term Thinking: Avoiding Short-Term Optimization in Private Equity

Founder Partnerships: Transaction Worthiness and Rollover Stakes

Part 5: Conviction, Firm Evolution

Investigate and Invest: Building a Position Over Time for Insider Knowledge

The Value of Ownership: Learning and Gaining Conviction Over Time

From Great Fund to Great Firm: The Evolution of Renovus

E288: Inside a PE Fund Ranked #1 in IRR, DPI, and TVPI

How I Invest with David Weisburd

Part 1: Fundraising Success, Market Strategy

00:00Renovus's Successful Fundraising: Timing, Strategy, and Team Dynamics

Renovus's Successful Fundraising: Timing, Strategy, and Team Dynamics

00:52The "Secret Sauce" Behind Renovus's Alpha Capture: HEC Dow Jones Report

The "Secret Sauce" Behind Renovus's Alpha Capture: HEC Dow Jones Report

02:52Playing the "Easy Mode": Renovus's Strategy and Team Advantages

Playing the "Easy Mode": Renovus's Strategy and Team Advantages

Part 2: Team Building, Talent Density

04:49Talent and Firm Evolution: The Exponential Growth Drivers at Renovus

Talent and Firm Evolution: The Exponential Growth Drivers at Renovus

06:43Brand Impact and Transparency: Easing Capital Raising for Renovus

Brand Impact and Transparency: Easing Capital Raising for Renovus

08:38From Players to Coaches: Building a Talent-Driven Firm at Renovus

From Players to Coaches: Building a Talent-Driven Firm at Renovus

11:35Talent Density and Entrepreneurial Spirit: Hiring for Innovation

Talent Density and Entrepreneurial Spirit: Hiring for Innovation

12:50Screening for Attributes: Renovus's Unique Hiring Approach

Screening for Attributes: Renovus's Unique Hiring Approach

Part 3: LP Relations, Capital Management

15:41Evolving LP Mix: From SBA Reliance to Diversified Institutional Base

Evolving LP Mix: From SBA Reliance to Diversified Institutional Base

17:39Strategic LP Selection: Prioritizing Long-Term Stability and Growth

Strategic LP Selection: Prioritizing Long-Term Stability and Growth

19:00Portfolio Construction: Building Positions Over Time and Recycling Capital

Portfolio Construction: Building Positions Over Time and Recycling Capital

Part 4: Investment Philosophy, Long-Term Value

20:58Learning to Hold: Growing EBITDA and Improving Business Quality

Learning to Hold: Growing EBITDA and Improving Business Quality

22:26Long-Term Thinking: Avoiding Short-Term Optimization in Private Equity

Long-Term Thinking: Avoiding Short-Term Optimization in Private Equity

23:44Founder Partnerships: Transaction Worthiness and Rollover Stakes

Founder Partnerships: Transaction Worthiness and Rollover Stakes

Part 5: Conviction, Firm Evolution

25:37Investigate and Invest: Building a Position Over Time for Insider Knowledge

Investigate and Invest: Building a Position Over Time for Insider Knowledge

27:11The Value of Ownership: Learning and Gaining Conviction Over Time

The Value of Ownership: Learning and Gaining Conviction Over Time

30:28From Great Fund to Great Firm: The Evolution of Renovus

From Great Fund to Great Firm: The Evolution of Renovus