Sequoya Borgman has quietly built one of the most interesting retail-funded private equity machines in America. Since launching Borgman Capital in 2017, he’s acquired 20 companies across 8 platforms and raised deal-by-deal from 500+ individual investors instead of institutions.

In this episode, we break down how he sources mostly off-market deals in second-tier cities, structures conservative, over-capitalized balance sheets, manages messy founder transitions, and keeps hundreds of retail LPs aligned while staying oversubscribed on almost every deal.

TIMESTAMPS
0:00 Biggest risk in PE founder transitions and bad leadership fit
0:44 Why the “retail private equity” model
4:37 Working with PE as a CPA and deciding to start Borgman Capital in 2017
6:10 How uncertainty really hits lower middle-market companies
8:04 Biggest early mistakes: Hiring the wrong leaders and underestimating founders
11:35 Responsibility to employees, banks and LPs
13:10 Sponsor: CapitalPad - Backing business buyers and accessing proprietary small-business deals
14:12 First acquisition story
16:24 Why Borgman chose hundreds of retail LPs instead of a fund
20:45 Oversubscribed deals, memos, webinars and passthehat.com
29:09 Sponsor: Spacebar Studios
30:23 State of private equity today: Fewer deals closing, lower leverage and patient sellers
32:34 Why Borgman fishes in second-tier cities
36:17 Deal flow: 1,500 deals a year, 2-minute financial test and what they actually buy
40:49 Adding 500k-1M of extra equity to protect against surprises
54:44 Risks of raising from regular investors
58:59 When to sell

Sponsors:
https://capitalpad.com/ - A deal-by-deal private equity investing platform
https://www.spacebarstudios.co/inquire

Follow Mikk/PrivateEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuy

This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

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