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 down 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:
- The founding story of Permira and the evolution of the firm since spinning out of Schroder Ventures in 1996.
- How the firm’s beginnings have shaped the culture that has been built and how that culture has permeated how they make investment decisions, work with companies, founders, and LPs.
- How would an LP underwrite Permira’s culture?
- How the firm’s European heritage helps as an investor.
- The opportunity set in Europe.
- The investment culture at Permira and how its structure and set up helps investment processes and decision-making.
- Why software buyouts have become a larger part of the buyout investing landscape.
- How AI is impacting software investing and how AI is impacting services businesses.
- Why the firm has expanded into credit.
- The thought process behind launching a wealth solutions business, Permira Wealth, and how it reflects the culture of the firm.
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.
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
What is Alt Goes Mainstream: The Latest on Alternative Investments, WealthTech, & Private Markets?
Alt Goes Mainstream podcast is the place to turn to for interviews with some of the brightest and most experienced minds in the world at the intersection private markets and wealth management. AGM dives into investment strategies like private equity (PE), private credit, venture capital (VC), secondaries, GP stakes, infrastructure, real estate, wealth management, and comprehensively covers tools and frameworks for approaching private markets, such as asset allocation, evergreen funds, model portfolios, and more. For anyone looking to invest into private markets (from experienced wealth managers to family offices to the individual investor looking for a more diversified investment portfolio), you’ll hear inside stories from executives and founders at some of the world’s largest financial institutions, alternative asset managers firms, and wealth management firms. More than a personal finance podcast, Alt Goes Mainstream dives deep into trends, investment strategies, firm building lessons, and innovative technologies that are enabling investors to access private markets.