In a recent fireside chat hosted by Giovanni Amodeo, Simon Feiglin, managing partner at The Riverside Company, shared his extensive insights on identifying and nurturing successful businesses in Australia. The discussion, which spanned various aspects of private equity and investment strategies, was rich with information on how Riverside has carved a niche for itself in the Australian market.

Feiglin, who has been with Riverside for over 17 years, detailed his journey from the U.S. to Australia and how Riverside has evolved since its inception in 1988. The firm, which started with small deals due to limited funds, now manages approximately $13.5 billion in assets, focusing on small to mid-sized companies globally.

Feiglin emphasized Riverside’s strategy of partnering with companies that have up to $25 million in EBITDA, particularly those in the range of $5 million to $15 million. He highlighted the firm’s approach to investing heavily in these companies for growth, both domestically and internationally.

The conversation also touched on the challenges and strategies involved in establishing Riverside’s brand in Australia during the global financial crisis. Feiglin shared insights into the firm’s initial struggles and how leveraging their global experience helped in building credibility and trust in the new market.

Moreover, Feiglin discussed the importance of data and experience in making informed investment decisions. He mentioned Riverside’s use of proprietary databases to track investments and gather insights, which has been crucial in their decision-making processes.

The chat also covered the evolving nature of private equity, the increasing importance of co-investments, and the role of continuation funds in providing flexibility to both investors and firms.

Overall, the fireside chat with Feiglin provided a comprehensive look at Riverside’s strategies for finding and growing successful businesses in Australia, the importance of data and global experience, and the trends shaping the future of private equity.

Key timestamps:

00:09: Introduction
01:17: The Riverside Company and its Focus
03:08: Building the Brand in Australia
05:12: Branding and Market Perception
06:30: Identifying the Niche
07:39: Investment Thematics
09:48: Focus on B2B and Long-Term Thematics
10:16: Partnering with Business Owners
14:15: Codifying Experience and Sharing Information
17:36: Deal Origination Processes
20:34: Role, Evolution and Industry Changes
22:44: Relationship with Investors and LPs
28:00: Continuation Funds and Market Trends
30:57: Impact of Increased Capital in Private Equity
31:25: Appreciation of Private Equity Asset Class
31:55: Continued Influx of Capital into Private Equity
32:19: Potential Consolidation of General Partners
32:50: Conclusion