Info on CD&R Tech Team
College senior here interested in tech PE and MFs and want to learn about the tech arm of CD&R as I begin to think of post IB PE plans and OC.
I hear the CD&R tech team is fairly new but looks like they have done some cool deals with Epicor, Cloudera and Presidio and the PwC carveout. Looks like they have done a mix of B2B software and IT services.
Would love to hear general perspectives about the CD&R tech group but would really also appreciate insights about the following -
1. What is the tech group's investment philosophy? I hear CD&R overall has historically been more value oriented, old economy focused. Does this tech team follow the same philosophy or do they think differently about deals? Additionally, do they have any particular thesis on specific sub verticals or sectors within tech that they will focus on?
2. Does CD&R's tech team mostly have an operational focus or financial engineering focus or something in the middle that blends both?
3. CD&R's website shows many operational partners with stellar backgrounds and it seems like the tech investment team also has partners who were C suite executives for major tech companies. Curious to learn how this might influence the experience, particularly from an associate perspective?
4. Is the program strictly 2 and out for associates?
5. Associate recruiting process - how associates does the tech group take each year? Do they participate in on cycle? What percent of the class do they recruit from on cycle vs off cycle? Are there any particular backgrounds they prefer or consistently had in previous classes?
Based on the most helpful WSO content, here’s what you need to know about CD&R's tech team and related insights:
Investment Philosophy: CD&R has traditionally been value-oriented and focused on old economy sectors. However, their tech team appears to be carving out a niche in B2B software and IT services, as evidenced by deals like Epicor, Cloudera, Presidio, and the PwC carveout. While they likely maintain a disciplined, value-driven approach, the tech team may adapt this philosophy to align with the dynamics of the tech sector. Specific theses on sub-verticals or sectors within tech are not explicitly detailed, but their deal history suggests a focus on enterprise software and IT services.
Operational vs. Financial Engineering Focus: CD&R is known for its operational expertise, and this likely extends to the tech team. The presence of operational partners with strong C-suite backgrounds in tech suggests a significant emphasis on operational improvements rather than purely financial engineering. This blend of operational and financial strategies could provide associates with a well-rounded experience.
Influence of Operational Partners: The involvement of high-caliber operational partners, especially those with C-suite experience in tech, likely enhances the learning experience for associates. Associates may gain exposure to strategic decision-making and operational value creation, which could be particularly beneficial for those interested in understanding the intricacies of tech businesses.
Associate Program Duration: CD&R's associate program is typically structured as a "2 and out" model, which is standard for many private equity firms. However, exceptions may exist based on performance and firm needs.
Recruiting Process: CD&R participates in on-cycle recruiting for associates, and the tech team likely follows this process. The number of associates hired annually for the tech group is not specified, but they may recruit a mix of candidates from on-cycle and off-cycle processes. Preferred backgrounds often include investment banking (especially from top groups), consulting, or other roles with strong analytical and deal experience. Given the tech focus, candidates with exposure to tech deals or a demonstrated interest in the sector may have an edge.
For further insights, you might explore WSO threads or reach out to professionals in the industry for firsthand perspectives.
Sources: The Other Road: Corporate Development Associate Fielding Questions, H&F vs CD&R, Is tech all that or nothing more than a buzz word?, Q&A: Strategic Finance / Corp Dev at late-state technology company (series C+ / $2bn+ valuation), Anyone do both FP&A and Corp Strat or Dev?
Bump
Anyone?
Don't have any insight but not sure if Pwc / Vialto deal is one to emphasize since they just did a soft out of court Rx although you could focus on the new money. CD&R at least used to pride themselves on never taking zeros...
Haha fair enough, poor phrasing on my end cause I was typing absent mindedly. I meant to emphasize the Epicor and Cloudera deals and meant to say that I was also following the news headlines around the other deals including the acquisition of Presidio this year and the debt restructuring with Vialto
Commenting from what I've heard, not first hand experience so take it with a grain of salt.
- Very operational focused, like the rest of CD&R.
- Program is not 2 and out. Obviously a high bar for being promoted, but not two and out.
- Think the numerous operating partners with great background is more a feature of MF PE rather than pure value add from CD&R's side
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