Jamie Roberts | A Masterclass in Securing Private Equity Investment

Success in the world of private equity is often a matter of preparation meeting the right personality. In this episode of the Beyond the Boardroom podcast, our host Aleksandra sits down with Jamie Roberts, the Managing Partner and Chairman of the Investment Committee for YFM Equity Partners. With over a decade of experience deciding who is worth backing, he is able to provide a rare, transparent look at the mechanics of investment, from the initial meeting to the long-term relationship.

The 1% Rule: What Investors Are Really Looking For

At YFM, the team reviews approximately 1,500 opportunities every year, yet they only invest in about 1% of them. This selective nature is not due to a lack of desire to invest; rather, it is a disciplined approach to managing other people's money. In fact, he explains that 99% of the time, his role involves finding reasons to politely decline an opportunity.

The businesses that make it into the 1% are those that align with specific criteria. While the product and the market are important, Jamie emphasizes that the decision is always, always, always about the people. A great person can navigate a difficult market or a flawed product, but a great product cannot save a team that lacks the ability to execute.

Success Criteria for the Ambitious Founder

To stand out in a sea of 1,500 applicants, founders must demonstrate more than just a good idea. Jamie looks for several key indicators during the evaluation process:

1) Transparency and Preparation: A major "tick" for Jamie is when a founder shares information well in advance of a meeting. It shows pride in their work and allows the investor to enter the room informed and ready for a meaningful, deep-level conversation rather than just a surface-level pitch.

2) The Burning Desire: Successful founders often possess a burning desire and a passion that makes them light up when telling their story. Investors alike Jamie actually enjoy it when a founder gets so excited they drift off their prepared script into a "segue," as it shows their brain and mouth are truly engaged with their vision.

3) Willingness to Learn: One of the most investible traits a founder can have is the humility to admit they do not know everything. Private Equity firms like YFM Equity Partners value founders who seek out mentors and coaches, recognising that they may outgrow certain advisors as their journey progresses.

4) Stability Outside of Work: Contrary to the "tech bro" culture of 150-hour work weeks, Jamie believes that people with active lives outside of work—families, hobbies, and vacations—are significantly more stable and, therefore, better leaders.

Red Flags That Kill the Deal

While investors try to avoid snap judgments based on conscious or unconscious bias, certain behaviors act as immediate red flags. The most significant of these is lying or deliberately misrepresenting facts.

Jamie explains that if a founder claims to have 50 customers but the due diligence process reveals only 15, the trust is broken. He views an investment as a marriage—a long-term relationship that typically lasts five to seven years. If there is dishonesty before the "marriage" is even finalised, it is a clear indicator of how the founder will behave during the inevitable bumps in the road.

Maintaining the Relationship: The Investment Marriage

Once an investment is made, the focus shifts to strategic direction and execution. Jamie is clear that YFM are not "operators"—they do not run the business for the founder. Instead, they provide the capital and the network to help the business scale, such as hiring a sales director or finding advisors to help a company expand into the US.

The key to maintaining a healthy relationship with a private equity partner is open and transparent communication. Jamie notes that founders who are open about their challenges and even their desire to eventually exit or find successors are the ones who successfully navigate the journey.

The full episode provides even more information on how to successfully impress potential investors so if you're looking for advice or are just curious, it is a must watch. Alternatively, discover more about Jamie Roberts' background and what gives him a unique edge as a managing partner, or read about how private equity firms like YFM truly work (unlike what you see on reality TV).

➡️ Read our latest feature in London World, which dives into the recent Beyond the Boardroom podcast episode with Lewis Raymond Taylor, also known as the 'Psychopath Life Coach.'

Published By Aleksandra Media