Private equity firms need to find good deals, which are
- Usually not deals investment bankers/brokers try to sell
- Mostly from proprietary deal flow
- Mostly obtained through connections
Private equity firms need to connect with
- Lawyers and accountants whose clients want to sell
- Executives/owners of those companies want to sell
- Other private equity firms looking for syndication
A case study – a $750M deal of Chobani
- TPG was in talks with Chobani before the market found out in 2014
- The deal was obtained through the mutual connection of TPG’s co-founder and Chobani’s CEO