Creativity Eclipsing the JAMMBOs
Amidst a buyout PE environment packed with a sea of copy-paste plain vanilla MM groups who sing to LPs (who are no longer listening) that their medium/light sector focus(es) and 'deep bench' of operating advisors (uninvolved old fart retirees) make them very differentiated, there is a circle of smaller/newer crews rewriting the playbook and actually offering something divergent and creative.
As a first example, a friend recently educated me on North Park Group in Chicago, consisting of a smaller group of operators who come from careers in industry (zero PE backgrounds), have raised an evergreen vehicle to buy-and-scale smaller businesses indefinitely with little-to-no leverage at close, the goal to dividend 15-20% COC perpetually, and debt recap optionality down the road following achieved EBITDA scale. The real unique piece (as there are plenty of other evergreen funds) is a member/partner of the firm is plugged in as CEO post-acquisition at each portfolio company to run the business day-to-day, essentially removing the standard PE "money manager" middle-man sitting between LPs and business operations.
As a second example, I recently met someone who is investing in a new fund's vehicle solely focused on search fund deal secondary stakes + follow-on equity. First time I've ever heard of this specific focus, but the market/demand for this is completely logical following the heightened search funder wave.
While the young immature sharks on this forum typically only care about who's fund size trajectory is gaining momentum, I'm significantly more interested in which smaller/emerging groups are offering a strategy that's actually uniquely creative - Are there any names that come to mind?
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