Many operators assume PE partners are always right and implement offhand suggestions as strategy. The best relationships involve a healthy give-and-take, where management uses data to validate or challenge the PE firm's ideas, preventing misguided decisions.
Achieve Partners invests in companies constrained by talent shortages (e.g., cybersecurity, healthcare IT). They then build apprenticeship programs, creating a pipeline of lower-cost, trained talent. This solves the company's growth bottleneck while increasing margins and creating a unique value proposition for founders.
Many service firms are top- and bottom-light, with a bloated, expensive middle ('diamond' shape). An apprenticeship model creates a wide base of junior talent, restoring the more profitable 'pyramid' structure. This increases margins and improves retention for senior staff who no longer do 'scut work'.
The idea that social good and high returns are mutually exclusive is a misconception. Solving major societal issues, like youth unemployment and skills gaps, can create massive economic value. This model generates alpha by tapping into the talent arbitrage of overlooked, driven individuals from underrepresented communities.
Companies create impossible job descriptions seeking perfect candidates ('purple squirrels') who have already done the exact job. A better strategy is to identify high-aptitude individuals ('brown squirrels') from undervalued talent pools and invest in training them to fill specific needs, bridging the gap between academia and industry.
Many PE firms hurt their DPI by holding onto assets too long, chasing an idealized exit price. Achieve Partners attributes its top 5% DPI performance to a disciplined strategy of selling businesses once underwriting targets are met, recognizing that the market is generally right about value.