🎥 Permira's Dipan Patel - how to scale an €80B AUM alternative asset manager

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.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

Clip #1: Why strong founders can be transformational for companies.

Clip #2: How does the right culture lead to better decision-making?

Clip #3: “An obsession with growth in our portfolio companies.”

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.

Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].

We thank Ultimus for their support of alts going mainstream.

Show Notes

00:00 Message from Ultimus, our Sponsor

01:55 Welcome to the Alt Goes Mainstream Podcast

03:42 Introducing Dipan Patel

03:47 Discussing Distributions

04:24 Selling A-Grade Businesses

05:08 Flight to Quality in Investments

06:49 Reflecting on Career Beginnings

08:04 Lessons from Arthur Andersen and Lehman Brothers

09:56 Challenges in Today's Investment World

11:24 Underwriting in Unpredictable Times

12:01 Basics of Private Equity

17:36 Importance of Market Leadership

18:21 Backing Strong Founders

19:55 Permira's Co-Leadership Model

20:23 Permira's Origin Story

23:48 Investment Decision Process

25:35 Underwriting Character in Executives

27:15 Learning from Mistakes

27:49 Underwriting Permira's Character

28:02 Understanding Your Identity

28:39 Building a Strong Culture

29:02 Thriving in Chaos

29:20 Anti-Fragility Concept

29:43 Learning from Mistakes

30:15 Capital Flows in Private Markets

30:43 Delivering Returns to Investors

30:57 Developing Investment Theses

31:33 Exit Strategies

32:10 Supply Creates Demand

32:39 Educating Investors

33:23 Access to Private Markets

33:44 Managing Risk and Returns

35:12 Navigating Industry Evolutions

35:50 Staying Focused

36:22 Balancing Growth and Differentiation

38:23 Investing in Growth and Buyout

39:50 Synergies in Investment Strategies

41:18 Managing Risk in Investments

44:07 Platform Shifts and AI

44:30 Disruption vs. Destruction

45:31 Investing in Incumbents vs. Disruptors

46:47 Control in Private Equity

48:15 Adapting to AI

56:07 Future Investment Ideas

Editing and post-production work for this episode was provided by The Podcast Consultant.

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