OP #250: My Operating Partner Toolkit, Bain's 2024 PE Report

Author

Darren Herman
March 12, 2024

Letter #250 - bam! 💥

Thank you for subscribing and dedicating some of your time and attention to our weekly discussions. Here's a fun fact: the count of #250 might seem modest, but it actually underscores a significant journey. The Operating Partner initially began as a blog in the mid-2000s with thousands of posts. In 2016, I decided to transition from the blog format to a newsletter. So the 250 number discounts the total volume of content.

🥩 In editions #248 and #249 of the Operating Partner newsletter, I excitedly shared our plans to host an Operating Partner Dinner series in collaboration with our friends at Fogo de Chao in select cities. I'm thrilled to announce that we're turning those plans into reality, with our inaugural dinner set for March 28 in Boston. The enthusiasm was overwhelming, as the event reached full capacity in less than 3 minutes, attracting an incredible group of OP subscribers for what promises to be a memorable evening.

Next on our agenda is Dallas, tentatively scheduled for April. I'll keep you posted on the details as soon as they're finalized.

For those who weren't able to secure a spot for Boston, there's still a chance to join us at future dinners. Sign-up links will be made available for upcoming events, including those in New York and a yet-to-be-determined location on the West Coast, following our Dallas dinner. Stay tuned for more updates!

💄 Launch of Varsity Beauty, a new beauty line for the athletes by the athletes. Here’s a 2m30s behind the scenes video of the making of Varsity Beauty. I am biased as Varsity Brands is a Bain Capital portfolio company and I’ve been involved with them since Day 1, but I’m extremely proud of the launch team.

📊 Not sure if you’ve seen this but media mix models (and marketing mix models) have been transforming recently.  Gone are the days of 6 month MMMs… welcome to the everyday MMM.  I’ve seen some really interesting innovation in this space by folks like Recast, Keends, Pecan, and others. The news this past week is that Google released an open source MMM: Empowering Your Team To Build Best-In-Class MMMs. I wonder how titans like Analytic Partners will respond.

💡 Michael Miraflor (Hannah Grey VC) writes a great post titled, Rules for Networking Up. I have to give Miraflor kudos for this one. It’s good. A must read for anyone who is networking up, i.e. YOU (and me). Speaking of great content…the CG (consumer quotient) by Forerunner.  Loved this most recent newsletter all about how many Americans believe the economy is rigged and a look into the only-child boom.

🏀 Duke’s Roach to Auction Senior Day Sneakers for Charity via Daps.  Love seeing the athlete-to-fan model continue. Keep your eyes on the Realest platform as well.

💸 Earlier this week, Bain & Co released their 2024 Private Equity Report. For those unfamiliar, this is a tentpole annual report and usually gives a good perspective of what is happening in the space. Slower distributions have made LPs cash flow negative, limiting their ability to invest more in private equity. Relevant to the OP, here’s a good piece on how PE is leveraging AI for value creation activities.

🎨 Speaking of reports, earlier this week, AdAge released it’s 2024 A-List. Congrats to all of the OP subscribers who won awards this year.

Thank you for reading. I look forward to our next 250 letters together.

Darren

The Essential Toolkit for the Modern Operating Partner

After several attempts and revisions, I'm excited to share insights into a question many of you have posed: How do I stay organized? Over the years, my methods have evolved, but one preference remains consistent - the allure of analog tools. However, acknowledging the recent innovation of AI and generative AI technologies, I anticipate I’ll be changing up this stack soon.

I want to hear from you… what is your stack?

Let me introduce you to three indispensable tools in my Operating Partner toolbox:

Ink+Volt's Dashboard Spiral Deskpad: This deskpad is an integral part of my daily routine and accompanies me on travels. It's unparalleled in organizing my week at a glance, with dedicated sections for prioritizing tasks. The tactile experience of using this pad – its quality and luxurious feel – enhances my planning process. Before each week begins, I dedicate time to populate the deskpad, a practice that not only organizes my schedule but also clarifies my thoughts for the week ahead.

Google Docs: In the realm of digital tools, Google Docs stands out as a cornerstone for me. Its ecosystem, including Sheets, Forms, and occasionally Slides, offers comprehensive solutions for my professional activities, my involvement in Silicon Alley Sports, Tremont School, and even the content creation for The Operating Partner newsletter. The seamless integration between Forms and Sheets is particularly beneficial for organizing and analyzing information effortlessly.

Moleskine Notebook (Hard Cover, Sapphire Blue): Despite the digital age, this notebook remains my trusted companion for all note-taking needs. Its presence on my shelf, growing in volumes over the years, is a testament to its enduring value. Although I've experimented with digital note-taking platforms, such as Google Docs and Notion, I invariably return to my Moleskine within a week or two, preferring its tangible record-keeping method.

As we stand on the cusp of a new era with AI tools that promise to revolutionize knowledge management and organization, I'm intrigued by the potential to integrate my notes and contacts digitally. The idea of creating a personal knowledge bot is fascinating.

I envision a future where a solution seamlessly bridges the gap between analog and digital, catering to those of us who cherish the physical act of writing while leveraging the immense capabilities of artificial intelligence. This balance would offer the best of both worlds – the tangible satisfaction of traditional methods enhanced by the efficiency and intelligence of modern technology.

I know many of you are hyper organized… I’d love to know what your stack/routine is… And for many of my super early blog readers, like mid 2000s, I’m still looking for the personal CRM….

I've done extensive reading this week and I hope you'll enjoy the following links that I've curated. If you come across an article that you believe would be a great addition to future OP letters, don't hesitate to share it with me. However, please note that I retain the discretion to decide on the content that goes into each OP letter.

Something Like Fire (City Journal)

The Algebra of Wealth (Scott Galloway)

Reddit’s S-1 (SEC.gov)

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Thank you again for reading!