Sep 21, 2021

Our Unexpected & Pioneering Approach To Help PE Firms Make Better Investments

Over the past 18 years, Lancor has built an exceptional reputation as a global executive search firm that places innovative private equity leaders within top Private Equity firms and their portfolio companies. 

We are so much more than a traditional executive search firm, however. 

Our Lancor Advisory Business (“LAB”) is a pioneering arm that allows us to partner with our clients to discover proprietary investment opportunities through unique executive-led, deal angles.  We also offer exceptional insights into tuck-in acquisitions – all before our clients invest or buy the business.  We add value for our clients both in terms of leadership and through invaluable advice around their asset acquisition pipeline and ultimate investment thesis. 

How do we do all that?  We leverage our network of industry leaders and experts and connect them to our Private Equity and Venture Capital clients. First, we source a team from the hundreds of thousands of executives that we have gotten to know on the 100+ searches we do every year. Next, we collaborate with these executives to deliver specific insights on actionable assets that provide an operational-focused investment thesis.  This helps sponsors determine if the asset will be a good investment or if it is something they should pass on quickly. Therefore, Private Equity firms also avoid costly broken deal fees as they can move on to another opportunity quickly, and not simply come to the same conclusion after hiring expensive consultants.  They also are able to build industry-specific rapport with executives to help then navigate to the next opportunity. 

If the advice is to invest, we ask our executives to provide insight into how the business needs to be run, and help determine who the executives are that could take it to the next level if needed.  These executives are rewarded for their time and then have the opportunity to get equity, join the Board or even join the C-Suite if interested.  Recently, New Mountain engaged Lancor to facilitate introductions to aid in the diligence of water and infrastructure assets. New Mountain utilized Lancor’s executive introductions to gain valuable insight and develop a bespoke investment thesis. The firm ultimately acquired the business and Lancor co-invested.  This shared risk and reward relationship builds trust and deepens our collective appreciation of value creation.

If the advice is to pass, our experts can save a PE firm millions of dollars on broken deal fees. For example, a global private equity firm was building interest in various FinTech sectors. They engaged Lancor to review several assets and support their research with asset-specific, executive insight. Lancor made the introduction to the current CEO of the asset and several former executives. We worked with the deal team to break down business segments and assess the areas of complexity and potential value creation.  Through these conversations, the PE firm gained conviction that the target was not well-positioned and passed, saving millions of dollars.  We then pivoted to other opportunities and eventually found the one that fit.

This partnership between the LAB’s executives and the Private Equity firms is what makes us stand out and more importantly how we provide incredible, unmatched value for our clients.  Leveraging our executive’s history and insight is how we find some of the most exciting deals, the deals that are a little off the radar, the deals where our clients can make an impact, and the ones where we all can collaborate and create differentiated alpha!