From Investor to Operator: Hard Truths from 35 Years in Private Equity with Matthew Kearney

🎙️ The Private Equity Podcast – Essentials for Investors with Matthew Kearney

This episode is packed with pragmatic advice and “growth hacks for operators” – get your pen ready.

⏱️ Episode Highlights & Timestamps:

00:03 – Introduction
Meet Matthew Kearney: 35 years in private equity, from 3i to operating partner and PE-backed CEO.

01:07 – From 3i to New York CEO
Matthew’s early career, moving from UK PE investments into operational leadership in media and technology.

02:31 – Common PE Mistakes
Why thinking “buying right” is outdated and why zombie portfolios exist. The importance of adding value post-investment.

04:56 – Speed Matters
Why hitting the ground running with a viable plan is critical – and where many PE firms still fail.

05:23 – The Need for Differentiation
You can’t differentiate on capital anymore. Matthew explains the need for pre-planned specialization and strategy.

07:21 – The Case for Specialism
Why generic approaches fail in auction processes. Success lies in preparedness and knowing your niche.

09:27 – Private Equity’s Evolution
From generalists to specialists, and from deal teams to fully professionalized operations functions.

11:24 – Pick Your Spots
The strategic importance of check size, deal type, and industry vertical – especially for smaller funds.

12:47 – Talent Strategy
When to insource, when to outsource. The balance between internal teams and external experts.

13:42 – Reducing Direct Reports
Why Matthew cut down his direct reports from double digits to five – and how he structured high-performance teams.

18:38 – NASA-Level Team Building
Using High-Performance Team models (inspired by NASA) to fast-track team effectiveness and reduce storming time.

20:06 – Grata Partnership Promo

20:35 – Lessons from Three Exits
Matthew shares what made his billion-dollar exits successful, from growth-first mentality to choosing the right M&A advisor.

23:27 – Beware of Price Promises
Red flag: advisors promising high valuations without understanding your business. Chemistry and early engagement are key.

24:31 – Staying the Course Through Uncertainty
Avoiding plan deviation in volatile markets. Why good governance, transparency, and dialogue are essential.

26:46 – The Decision to Pause a Sale
How Matthew and his board paused a 2021 sale due to geopolitical headwinds, only to exit successfully in 2025.

28:07 – Balancing Shareholder vs. Management Perspectives
Navigating differing time horizons and objectives post-sale delay. The role of a good Chair in alignment.

29:59 – What Matthew Reads
Matthew’s go-to content: Wall Street Journal, Financial Times, The Economist (begrudgingly!), BBC, and even Daily Mail for well-researched stories.

31:55 – How to Connect with Matthew
📧 Email: [e-mail]
🔤 Name spelling: Matthew (with two T’s) Kearney (K-E-A-R-N-E-Y)

Raw Selection partners with Private Equity firms and their portfolio companies to secure exceptional executive talent. We focus on de-risking executive recruitment through meticulous search and selection processes, ensuring top-tier performance and long-term success.

🔗 Connect with Alex Rawlings on LinkedIn: https://www.linkedin.com/in/alexrawlings/
🌐 Visit Raw Selection: www.raw-selection.com