Private Equity Playbook:
1. Creating experts in identifying businesses that fit a specific model
1. Mission critical business
2. Mission critical enterprise software
3. High recurring revenues
4. High economic rent
5. ….But aren’t operating as efficiently as they can
2. And then a group of people who bring very specific subject matter expertise to making them operate more efficiently
3. And then reusing the executives who you train over and over again
It’s a very efficient design and very scalable.
It works for $30mn companies and $2bn coys.
So managing Vista is to mange the money that comes in without diminishing returns in efficiency and loss ratio. So the culture now has to fit that design paradigm so you look for people who understand the design paradigm and work well within it.
Build systems of defense to make sure not everyone can do what you do, when you spot an arbitrage. The arbitrage must be measured in decades not years