Meet a Portfolio Value Creation Associate

Meet a Portfolio Value Creation Associate

Alma Mater: Brigham Young University

Hometown: Tokyo, Japan

How does your role in portfolio value creation differ from an investing role?

It's primarily the stage of the process we focus on. The investing role focuses on sourcing companies, then doing the diligence (and ultimately, deciding whether SGE should invest). Portfolio value creation is primarily post-investment - meaning we accelerate growth after the partnership has been forged. Post-investment, we help onboard companies, get to know them, then partner with them to accelerate growth on a variety of strategic topics (like, go-to-market, talent & org, Key Performance Indicators, and customer success).

Any advice for someone deciding between investing and portfolio value creation?

On the investing side, you've got to enjoy and be good at things like cold-calling and developing relationships with founders from scratch. You then get to evaluate companies, and work with others on the team to make decisions on capital investments. On the value creation side, there's an element of relationship building done post-investment. If you like to participate actively in a company's trajectory, then the value creation side may be better for you.

What companies have you gotten to work with? Any interesting projects you want to share?

I've worked closely with a variety of companies, but most heavily with Poppulo, an internal communications software, and Phorest, a salon scheduling and marketing tool. My favorite projects have been helping put together a multi-year strategy and execution plan, best practices around customer success, and strengthening go-to-market through account-based marketing - all of which were for different companies. I enjoy working in an agile environment that allows me to go between our portfolio companies and use my consulting background to gain direct exposure to high-growth tech companies.

You came from consulting before joining SGE. How do you think that prepared you for your role?

A combination of things made me ready for a position on SGE's Portfolio Value Creation team: participating in an entrepreneurial project during my undergrad, working in management consulting, and getting general exposure to the venture capital/private equity industry. Management consulting teaches you to think in an organized, methodical way. You learn to think from a client's perspective to optimize value-add. I learned to strengthen my ability to get up to speed on a business and their issues in order to effectively sift through data and noise, nail pain points, and arrive at recommendations.

Aside from skillset, as much as I loved consulting, I think it also made me want to understand what happened post-consultative services and see the company through its growth.

What advice can you give to someone looking to get into the Private Equity world?

Network and don't get discouraged. Read VC/PE newsletters. Read about tech, get experience in tech (specifically startups) - if that's the type of VC/PE you're looking to get into. Demonstrate passion in something (like entrepreneurship, consulting, tech, or investing). People notice when students reach out and want to learn about their PE firm. If you don't receive a response, follow up, then keep going. People are super busy; don't let that discourage you.

How does the team work together and collaborate?

SGE practices what they preach in terms of ownership and transparency. My feedback is listened to and incorporated. That being said, you need to have a "why" behind your opinion-and be willing to incorporate others' opinions, collaborate, and iterate. The flat org structure really forces everyone-regardless of role-to take ownership of their projects, think critically, and formulate opinions that are defensible. It's a great approach to foster growth and optimal team output.