In this fireside chat, Maggie Arvedlund, CEO and Managing Partner of Turning Rock Partners, shares her insights on identifying niche opportunities in private capital investing. With over 20 years of experience in the industry, Maggie provides valuable perspectives on the evolution of private credit, deal sourcing, and the role of technology in the sector.

Timeline:
8 years ago: Turning Rock Partners was founded, focusing on asset-backed, cash-flowing corporates going through transition.
Today: The company has over $1.3 billion in capital under management and reviews around 700-800 opportunities per year.

Key Takeaways:

Niche Identification: Maggie highlights the importance of identifying niche opportunities in private capital investing, particularly in sectors with asset-heavy balance sheets.

Private Credit Evolution: The market demand for private credit solutions has tripled in the last 8 years, driven by secular bank retrenchment and the need for sophisticated partners.

Founder-Partner Focus: Turning Rock Partners’ main differentiation is its focus on partnering with founders, offering flexible solutions and adding value along the way.

Deal Sourcing: The company’s proprietary database and senior advisors play a crucial role in sourcing deals, with a focus on technology, company operators, and staple-based industries.

ESG and DSR: Maggie emphasizes the importance of Environmental, Social, and Governance (ESG) and Diversity, Equity, and Social Responsibility considerations in their investment decisions.

Interest Rate Impact: Higher interest rates may lead to a more conservative approach, with a focus on liquidity reserves, fundamental credit work, and opportunistic acquisitions.

Industry Evolution: The private equity industry may need to adapt to changes in interest rates, fundraising, and technology, with a focus on transparency, commitment to investors, and tech enablement.

Key timestamps:

00:11: Introduction to ION Influencers’ Fireside Chats
01:41: Starting Turning Rock Partners
04:09: Addressable Market and Financing Approach
05:56: Assessing Companies and Investment Criteria
10:09: Exit Routes and Use of Proceeds
11:20: Transitional Financing and Workflow
12:07: Assessing Macro Trends and Future Predictions
17:01: The Role of Technology in Alternative Investment
19:06: Qualities of Professionals at Turning Rock Capital
21:22: Post Close Monitoring and Annual Meetings
21:54: Long-Term Partnerships with Leadership Teams
22:14: Diversity and Inclusion Approach
23:18: Diversity and Inclusion in Portfolio Companies
23:51: Conclusion