In this episode of The Private Equity Podcast, Alex Rawlings is joined by Cory Steffek, Partner in the Private Equity Division of Ara Partners, to explore value creation in industrial decarbonisation and growth infrastructure.

Cory shares his unconventional journey from PhD chemist and climate-tech venture capital investor into private equity, and explains why successful industrial decarbonisation businesses need to be built around strong economics rather than subsidies, ESG mandates or “green premiums.”

The conversation covers why investors repeatedly overestimate technology and underestimate the cost and complexity of building physical infrastructure, how Ara Partners evaluates techno-economics and differentiates genuine industrial solutions from clever technology, and where the real value creation opportunities lie in waste-to-value businesses.

Cory discusses examples from Ara Partners’ portfolio, including Divert, Continuum, Utility Global and Sedron, and explains how operational execution, infrastructure development, supply chains and long-term offtake agreements can turn innovative technologies into durable, cash-flowing assets.

He also shares the framework that has had the biggest influence on his career: Stage Gate and Front-End Loading (FEL), and why disciplined project development is critical when scaling first-of-a-kind industrial assets.

Timestamps

00:00 – Introduction to Cory Steffek and Ara Partners
02:00 – From PhD chemist to private equity
04:00 – The biggest mistake in industrial decarbonisation investing
06:00 – Why green premiums don't create sustainable businesses
08:00 – What survives without subsidies, carbon credits or ESG mandates?
10:00 – Waste-to-value as an industrial investment opportunity
12:00 – Divert, Continuum and Utility Global: portfolio examples
15:00 – How Ara Partners approaches due diligence
17:30 – The challenge of estimating costs for new physical assets
20:00 – Why flawless execution matters in infrastructure
22:00 – The $500m investment in Sedron
24:00 – Where value creation really comes from
26:00 – Building and scaling physical infrastructure
28:00 – Sedron's waste-to-value model
30:00 – Organic fertiliser and the commercial opportunity
32:00 – Selling a new product into established markets
34:00 – Building the commercial team and securing offtake
36:00 – The importance of long-term supply and offtake agreements
38:00 – The Stage Gate and Front-End Loading framework
40:00 – Why “move fast and break things” doesn't work with infrastructure
42:00 – Final advice and how to connect with Cory Steffek

Raw Selection partners with Private Equity firms and their portfolio companies to secure exceptional executive talent. We focus on de-risking executive recruitment through meticulous search and selection processes, ensuring top-tier performance and long-term success.

🔗 Connect with Alex Rawlings on LinkedIn https://www.linkedin.com/in/alexrawlings/
🌐 Visit Raw Selection www.raw-selection.com

The Investment and Value Creation Strategy Behind Ara Partners

The Private Equity Podcast, by Raw Selection

The Investment and Value Creation Strategy Behind Ara Partners