Case Study: Successful Veterans in Private Equity

For Part 4 of our series "Breaking into Private Equity: A Veteran's Guide", I had the pleasure to sit down with Paul Swaney, our founding partner, and Managing Director, to discuss three different stories of veterans who have successfully transitioned into private equity, highlighting the ways in which their military experience has been an asset to their careers.

1.?From your time in PE what skills or experiences do you believe were most beneficial in a veteran's career? Do you have any examples of veterans that stood out?

2.?Sometimes failure can force change in a good way. During your PE career have you seen a veteran fail a project/step along the way? How did they handle that and how did their military background help them recover and be successful?

3.?Could you share a memorable experience or project a veteran lead during your time in PE and why their military background was beneficial?

1.?Paul thank you for your time today, I’m very much looking forward to this discussion. From your time in PE, what skills or experiences do you believe were most beneficial in a veteran's career? Do you have any examples of veterans that stood out?

Drawing from my experience in PE, I've observed that certain traits, particularly those honed in military service, significantly contribute to a veteran's career success in the civilian world. Here are a few key traits and examples:

1. Intellectual Curiosity: Veterans often have a voracious appetite for learning and understanding new concepts. This quality is crucial in PE, where understanding diverse businesses and industries is key.

2. Bias for Action Over Analytics: In the military, especially in combat scenarios, decisions often must be made with incomplete information. This 'bias for action' is immensely valuable in PE, where waiting for perfect data can mean missed opportunities.

3. Problem Solving in Ambiguity: Veterans, especially those from Special Operations or complex roles like Naval Nuclear Training are adept at making decisions in ambiguous situations. This skill translates well to the PE environment, where scenarios are rarely black and white.

A prime example of this comes from a SEAL officer I worked with. His military training had instilled in him these very traits. We initially placed him in a Chief of Staff role, leveraging his broad strategic skill set. His adaptability and quick learning enabled a swift transition to an Operations VP role where he excelled in managing complex processes. Now, he efficiently runs a Profit and Loss (P&L) division, showcasing a remarkable 'hockey stick' career trajectory. This progression underscores how military training, particularly in high-stakes, high-pressure environments, develops versatile leaders suited for the dynamic challenges of PE.

This blend of intellectual curiosity, a bias for action, and the ability to solve problems in uncertain conditions are key traits that veterans bring to the table. These skills, particularly evident in veterans from Special Operations and intensive training programs, make them uniquely suited for successful transitions into high-growth career paths in the private equity sector.

2. Great, those three traits are certainly developed within the military, and I can see the connection to the world of PE. Now, sometimes failure can force change in a good way. During your PE career have you seen a veteran fail a project/step along the way? How did they handle that and how did their military background help them recover??

In the world of PE, high stakes and intense pressure are the norms, failures are not just setbacks, but also potent learning opportunities. Reflecting on my PE career, there's a particularly instructive case involving a veteran whose initial failure became a springboard for remarkable success.

An ex-infantry officer, whom I had taken under my wing, faced a significant challenge in his transition to a PE consulting role. Accustomed to a rigidly hierarchical military structure, he initially applied the same approach in the civilian corporate environment. This methodology led to a setback. He received a negative review for overly relying on middle managers, akin to the trust he placed in Non-Commissioned Officers (NCOs) in the military. This hierarchical approach, while effective in military units, didn't translate well in the more nuanced and collaborative world of PE.

However, what was impressive about this veteran was his response to this failure. Instead of being deterred, he took it as a critical learning moment. He began to deeply engage with the concept of organizational culture, particularly the importance of driving it from the frontline. This shift in perspective was profound, as it combined his military leadership skills with a newfound appreciation for the intricacies of corporate dynamics.

The transformation was remarkable. He didn't just recover from the initial setback, but thrived, eventually rising to become the COO of a mid-cap industrials company. His journey is a testament to the resilience and adaptability that military veterans often bring to the corporate world. His military background, which initially seemed a hindrance, provided him with the fortitude and leadership qualities necessary to overcome failure and achieve success.

This example underscores a broader lesson: the same traits that might lead to initial challenges for veterans in the civilian sector with reflection and adaptation become sources of strength. Veterans' experiences in dealing with complex, high-pressure environments equip them with an extraordinary capacity to learn from setbacks and emerge stronger, thus making them invaluable assets in the dynamic world of PE.

3. That’s a great example Paul, thank you for sharing. Could you also share a memorable experience or project a veteran lead during your time in PE and why their military background was beneficial?

Certainly, recalling a standout instance from my consulting days vividly illustrates the profound impact a veteran's military background can have in the private sector, particularly in PE.

We had a project involving a pharmaceutical manufacturing site that was facing significant operational challenges. The decision was made to bring in an ex-submarine officer, someone whose military background had instilled in him a unique blend of discipline, technical acumen, and leadership skills. His experience in the high-pressure, precise environment of a submarine was directly applicable to the complexities of pharmaceutical manufacturing.

What was truly remarkable was the speed and efficacy with which he adapted to and transformed the manufacturing site. Within 6 months, he was running the entire operation. This rapid progression wasn't just a testament to his individual capabilities, but also highlighted how skills developed in the military such as quick decision-making, systematic problem-solving, and the ability to lead in stressful situations are extraordinarily transferable and valuable in the corporate world.

His approach to leadership grounded in clarity, precision, and accountability was particularly beneficial. In a submarine, every action can have significant consequences, and this sense of responsibility and attention to detail translated seamlessly to managing the complexities of a pharmaceutical site. The discipline and rigorous training from his military background ensured that he not only met but exceeded the operational challenges of the role.

This experience underscored a key lesson: veterans, especially those from specialized and high-pressure military backgrounds, bring a unique set of skills and perspectives that can lead to remarkable success in the civilian business world. Particularly in roles that demand rapid adaptation, precise management, and decisive leadership.

Paul thank you for your time and sharing different examples of veterans who applied their skills honed in the military which ultimately allowed them to thrive in the dynamic environment of PE.