Source Talks is a series where we discuss deal origination with PE and M&A pros, in collaboration with David M. Toll.
In this interview, David speaks with Rich Grant, Director of Business Development at Northlane Capital Partners, on leveraging data to prioritize business development efforts.
Rich, tell us about north capital partners and the kind of investing that you do there.
Northlane capital partners is a middle market, private equity firm focused on control investments in niche market leaders in the sectors of business services and healthcare services. Some of those sub sectors that we really like and we are actively pursuing for portfolio investments, a range from government software and it, healthcare, it pharma services professional training and education type businesses. We really liked the testing and measurement space as well. So these are sort of derivatives of business services and the healthcare service market that we really feel there’s a lot of opportunity to you know, really get behind some great management teams and build some beautiful businesses. We generally do deals 5 million EBITDA up to 30 million EBITDA. I recently joined Northland capital partners or NCP as we often referred to in February of 2021. My role is to help foster better creativity in market between generally investment bankers and other intermediaries across the market. As we continue to invest out of fund number two which is a $408 million fund.
What are some of the early best practices that you’ve hit on that are really serving you well in this role as a BD professional? What are your top three best practices that you’ve hit on, that are really serving you well?
Traditionally, Northlane has always had BD as a top priority, but that role often fell in some percentage level to the partners down through the associates. But as the competitive landscape increased they realized that they needed somebody that could live in this full time. Now to carve success early, what I have done and what I focused on it is best practices in market, both internally and externally around connectivity.
What role does technology play in your business development efforts there?
So by cross-referencing our active relationships with the deal flow information that we are seeing from both SPS and other tools in market, I was quickly able to realize a couple of bankers that have moved on from larger shops that we were familiar with and now reside in more of a boutique setting. And with that little bit of research, and again, that internal connectivity based on external data points that we collect I’ve gotten on their radar and we have seen an increase in deal flow to levels greater than 2019.