Tide Rock

All my PE buddies talk about how they tell investors they are using AI to differentiate.?All our investors ask how we are using AI to differentiate. Almost every time, the answer is related to cost cutting.?Yawn…?There are definitely opportunities to cut costs with AI (in some types of companies), but it’s not as much as people think (or want it to be). ? We're not (at least not yet) at a stage where you can just cut jobs and automate everything.?And when (if) we get there, everyone will be able to do it too.?So, you “may” be able to do it first, but everyone will catch up, and then, what's different? ? At Tide Rock, we think about using AI differently.?We use it to bet on people, not replace them—to help people be better at what they do; to expand their capabilities.?AI is a tool, not a replacement—it helps great teams move faster, make smarter decisions, and identify better opportunities. But without the right leadership and execution, no technology is going to build a lasting business. ? Our approach is different. We don’t invest in companies looking to cut their way to growth. We invest in strong teams, real strategy, and businesses built to last.?We have been investing in AI for years now, but we use it to add value and grow our companies.? ? San Diego Business Journal covered our contrarian take on AI — check it out here: https://lnkd.in/gNJsNuWV

FR Conversions is pleased to announce the appointment of Anoop Prakash as CEO. An experienced leader in growth and transformation, Anoop will drive key initiatives at FR, including expanding our dealer network, strengthening commercial fleet offerings and extending market reach. Read more: https://lnkd.in/gUwHTKMb #EngineeredtoServe #FRConversions #Leadership

WINDSHEAR!! The FAA defines windshear as a sudden change in wind speed and/or direction over a short distance—often unexpected, often associated with strong temperature inversions or density gradients. ? Right now, the business landscape feels exactly like that—I can’t remember a time when headwinds and tailwinds have been more volatile and sudden. ? Many investors try to time landings at the biggest airports, hoping for perfect wind direction and speed at the critical moments. But windshear makes that risky flying—a tailwind can suddenly shift into a headwind, and a smooth descent can turn into a rough landing. ? At Tide Rock, we take a different approach. For 11 years, we’ve been landing at smaller airports where windshear is less prevalent—investing in economically resilient, essential businesses that aren’t as exposed to sudden market turbulence. Our value creation isn’t driven by external conditions but by our proven playbook and growth team—helping our companies scale regardless of which way the wind blows. ? In fact, if we feel a strong tailwind in one of our companies, we take a closer look—because windshear is most dangerous when you least expect it. When that happens, we’ll look to divert the plane or safely land it.? ? The lesson? Don’t bet on perfect winds. Stay disciplined, fly smart, and execute relentlessly.?That’s at least how Tide Rock flies… #unleveredbuyout

Damnit – we aren’t perfect!??But look at the difference in our results even when we're not… ? The S&P just reported that 2024 hit a record high for PE/VC-backed bankruptcies, with 110 companies filing—this is a 15% increase from last year and is 60% greater than non-PE/VC. It’s a sobering stat, but not all that surprising given interest rates haven't gone down and the lending environment is tougher. Banks and private credit funds are definitely more aggressive these days when it comes to enforcing remedies on potential defaults or covenant breaches. ? For funds operating with high leverage, it’s brutal! Debt payments pile up, restrictive covenants leave little room to maneuver, and when portcos struggle with profitability, the runway runs out fast. ? That’s why I’m so grateful for Tide Rock’s model, especially right now.?We recently had our first few “workouts” where a few of our historically well performing companies had some setbacks and started losing EBITDA.?No bueno!?In any traditional levered model, we probably would have been toast.?Allocated capital entrusted to us by our investors… gone.?But we don’t have debt, and we have a great team focused on nothing but operational excellence.?So, we quickly made changes, rebuilt basecamp, and now, all of our companies are growing and profitable again.?The underperforming companies? We expect them to be among our highest performers this year.? ? By avoiding amortized debt in our transactions, we have the flexibility to focus on operational improvements, even during tough times. We’re not tied down by sky-high debt servicing costs, restrictive bank terms, or the constant threat of bankruptcy.?We are really good at what we do, but we are not perfect, and this unique, unlevered buyout model gives us the flexibility to withstand and recover from unexpected headwinds.? ? #consistency #unleveredbuyout #buyout

We've completed the acquisition of Brite Solutions to expand our national reach and enhance our expertise in the industry. This strategic move allows us to offer improved service capabilities to customers across a broader geographic area while deepening our knowledge and skills in the sector. Our CEO, Ken Davis, emphasized the strategic benefits of this partnership, saying “We’re incredibly excited to welcome Brite Solutions into the Triad family. Their vast experience in logistics and warehousing services complements our existing portfolio and opens the door to cross-selling opportunities for services like concrete polishing and floor maintenance. This acquisition is a testament to our commitment to delivering exceptional solutions to our clients while expanding our reach and capabilities.” Read more: https://lnkd.in/gc59_n4V