🎥 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 SolutionsThis 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] thank Ultimus for their support of alts going mainstream.Show Notes00:00 Message from Ultimus, our Sponsor01:55 Welcome to the Alt Goes Mainstream Podcast03:42 Introducing Dipan Patel03:47 Discussing Distributions04:24 Selling A-Grade Businesses05:08 Flight to Quality in Investments06:49 Reflecting on Career Beginnings08:04 Lessons from Arthur Andersen and Lehman Brothers09:56 Challenges in Today's Investment World11:24 Underwriting in Unpredictable Times12:01 Basics of Private Equity17:36 Importance of Market Leadership18:21 Backing Strong Founders19:55 Permira's Co-Leadership Model20:23 Permira's Origin Story23:48 Investment Decision Process25:35 Underwriting Character in Executives27:15 Learning from Mistakes27:49 Underwriting Permira's Character28:02 Understanding Your Identity28:39 Building a Strong Culture29:02 Thriving in Chaos29:20 Anti-Fragility Concept29:43 Learning from Mistakes30:15 Capital Flows in Private Markets30:43 Delivering Returns to Investors30:57 Developing Investment Theses31:33 Exit Strategies32:10 Supply Creates Demand32:39 Educating Investors33:23 Access to Private Markets33:44 Managing Risk and Returns35:12 Navigating Industry Evolutions35:50 Staying Focused36:22 Balancing Growth and Differentiation38:23 Investing in Growth and Buyout39:50 Synergies in Investment Strategies41:18 Managing Risk in Investments44:07 Platform Shifts and AI44:30 Disruption vs. Destruction45:31 Investing in Incumbents vs. Disruptors46:47 Control in Private Equity48:15 Adapting to AI56:07 Future Investment IdeasEditing and post-production work for this episode was provided by The Podcast Consultant. Join over 13,000 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit altgoesmainstream.substack.com