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Marlin Equity Partners is ranked among the top private equity firms in the Los Angeles area. Founded in 2005 by Mr. David McGovern, the firm looks to acquire mature businesses–those that have an established customer base, recognizable brand, and revenues in excess of $20 billion. To date, Marlin Equity's realized investments are in the following industries: technology, healthcare, consumer products, services, and manufacturing.

The firm's strength lies in its ability to partner with existing management to improve operations, expand the capital/asset base, and strengthen market position. Marlin Equity provides its portfolio companies with extensive access to industry resources and connections; all that is needed to move the company in the proper direction for advancement.

I had the pleasure of speaking with one of the principals of the firm, Mr. Peter Spasov, who so graciously shared his thoughts on where the private equity industry is going and how an ambitious graduate student should look to position himself/herself to take hold of future opportunities.

As news publications report KKR's unrelenting efforts to go public and a recent debt offering by the Blackstone Group (an unusual occurrence for a PE firm); one might wonder about the evolution of private equity. According to Mr. Spasov, PE is in its infancy. He articulated this by explaining what he calls the risk/reward scale:

Fixed Income (Low Risk, Low Reward)

• Efficient Market (based on a hypothesis that claims traded securities are priced to reflect all know information and are only changed by new information)
• Limited in investment return
• Mature industry

Public Equity (Moderate Risk, Moderate Return)

• Typically an efficient market, though there are exceptions
• Room for outsized returns in emerging markets

Alternative Investments (High Risk, High Return)

• Includes private equity, leveraged buy-out (LBO) funds, arbitrage strategies, hedge strategies, real estate, venture capital
• Inefficient marketplace; room for outsized returns
• Not many mature firms in this part of the industry

Based on this scale and what each asset class has to offer, a private equity investment strategy should be implemented in every portfolio. Institutional investors always allocate funds for these investments; Mr. Spasov believes that soon wealthy individuals will begin to do the same. This ultimately spells growth on every side of the equation… and opportunity for those who look to build a career in this segment of the industry.

How does one do so? A finance, investment banking, or operational background will certainly stand out on a resume. However, if you do not have an investment banking background or a strong Rolodex, Spasov contends that you will need to do two things:

1. Check your ego
2. Know people!

If it is truly your dream to work in private equity, don't be above starting in the mailroom. Perhaps even be willing to work for free. There is no question that you will have to pay your dues and claw your way to the top, but as Mr. Spasov says, once you're in, you're in.

This is a relationship-driven industry, so your ability to build your network will be critical to your success. Reach out to professionals in the industry, meet with them, wow them with your intellect and assertiveness, and then ask them to introduce you to five more people who make sense for your journey. It is also worth the effort to join and attend events put on by industry associations, such as ACG. Equally as important, stay current on industry information and happenings. Read about new and different industries. Always be in a mode of exploration.

Finally, Mr. Spasov told me a bit about his personal story of success. He asserts that the resolve to never settle and a dogged persistence will be one's greatest tools in attaining extraordinary results.

A graduate of the University of California, Santa Barbara, Mr. Spasov started his career filing and correcting legal documents at Northrop Grumman. Without the aforementioned background or connections, Spasov knew he would need to prove himself. He did just that and when he saw an opportunity to work in private equity, as the firm ramped up its efforts in to create a fund, he jumped at it. Eventually, he worked with the company's Investment and Trust Department (which manages employee benefit assets) and on the Private Equity and Real Estate fund as a voting member for new investments.

In 2005, Mr. Spasov took a leap of faith and joined the fledgling Marlin Equity Partners. As he says "∫there were no guarantees". Yet again, his persistence and "∫never settle" attitude served him well, as he has propelled himself to the top ranks of the firm. He is currently a Principal overseeing strategic initiatives, deal origination, transaction structuring, and investor relations.

For more information on Peter Spasov and Marlin Equity, visit http://www.marlinequity.com/.

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Mark Your Calendar

Wednesday, January 27, 2009; Time: 8-10 a.m.

Current Trends in Principal Acquisitions and Leverage Financing

Pepperdine’s Dr. John Paglia and a panel of seasoned private capital professionalls discuss the 2010 outlook for private lending and investing. Cost: $20 at the door.

Location:
Graziadio School of Business and Management, Pepperdine University – West Los Angeles
6100 Center Dr., Suite 203, Los Angeles, CA 90045

Sponsored by the Graziadio Alumni Network Council of Los Angeles and Pepperdine Private Capital Markets Project

Related posts:

1. 5 Benefits of Private Equity