Making Billions: The Private Equity Podcast
Building a Value Creation Machine & Scaling a Private Equity Firm
Making Billions: The Private Equity Podcast
•February 17, 2026•0 min
0
Making Billions: The Private Equity Podcast•Feb 17, 2026
Why It Matters
By focusing on overlooked carve‑outs and embedding operational expertise, Pacific Avenue creates higher returns and differentiates itself in a crowded PE market, signaling a replicable model for firms seeking sustainable value creation.
Key Takeaways
- •Target carve-outs from non‑strategic owners
- •Europe expansion driven by talent, not just market
- •Proprietary sourcing via corporate relationships
- •Ops team partners with management, adds deep acumen
- •Patience and resources essential for complex carve‑outs
Pulse Analysis
Private equity firms are increasingly turning to complex carve‑outs as a source of untapped value, especially when the assets are held by "unnatural owners" such as conglomerates or strategic divestitures. These transactions often escape traditional deal pipelines, allowing firms like Pacific Avenue to acquire assets at attractive multiples. By targeting non‑core businesses, PE managers can apply focused capital and strategic oversight, generating outsized returns compared with standard buy‑and‑hold models. This niche approach aligns with broader industry trends that prioritize specialization and deep sector knowledge.
Operational excellence has become a decisive competitive edge in the PE landscape. Pacific Avenue’s model invests heavily in a versatile ops team that partners directly with portfolio company leadership, blending generalist skills with deep business acumen. Their proprietary sourcing strategy—leveraging long‑standing corporate relationships—feeds a steady pipeline of carve‑out opportunities, reducing reliance on auction markets. The Total Energy carve‑out case exemplifies how disciplined operational support, combined with patient capital, can transform a fragmented business unit into a high‑growth platform, delivering measurable EBITDA improvements and strategic positioning.
The firm’s recent expansion into Europe underscores the importance of talent‑first growth. Establishing a Paris office required more than market analysis; it demanded cultural integration, cross‑border team building, and localized expertise. By replicating its ops‑centric framework abroad, Pacific Avenue aims to capture similar value creation opportunities across the Atlantic. This move signals to the broader PE community that scaling a value‑creation machine hinges on adaptable human capital and a consistent, people‑focused philosophy, rather than merely geographic diversification.
Episode Description
🎧 Episode Summary:
In this episode, Alex Rawlings speaks with Chris Sznewajs of Pacific Avenue Capital Partners about building a private equity firm focused on complex corporate carve-outs and businesses owned by “unnatural owners.” Chris shares how Pacific Avenue identifies overlooked assets, drives value through operational focus, and recently expanded into Europe with a team-first approach.
He dives into the lessons from building out their Paris office, the firm’s unique deal sourcing strategy, and a case study involving a complex carve-out from Total Energy. Chris also unpacks their value creation model, why they invest heavily in operational talent, and how they maintain culture across borders.
⏱️ Timestamps:
00:00 – Intro to Chris & Pacific Avenue
01:28 – Key mistakes in PE & portfolio strategy
03:52 – Why Europe? Lessons from expansion
05:47 – Building and integrating cross-border teams
10:57 – Defining “complex transactions”
12:24 – Total Energy carve-out case study
15:17 – Proprietary sourcing via corporate relationships
17:25 – Investing in ops: value creation strategy
20:16 – How their ops team is structured
22:45 – Chris’s interests & offer to connect
💡 Key Takeaways:
Focus on carve-outs and “unnatural owners” enables deep value creation.
Expansion to Europe was led by people, not just strategy.
A proprietary sourcing approach is key in competitive processes.
Ops team = generalists with deep business acumen who partner with management.
Carve-outs require patience, resources, and a consistent strategy.
Raw Selection partners with Private Equity firms and their portfolio companies to secure exceptional executive talent. We focus on de-risking executive recruitment through meticulous search and selection processes, ensuring top-tier performance and long-term success.
🔗 Connect with Alex Rawlings on LinkedIn: https://www.linkedin.com/in/alexrawlings/
🌐 Visit Raw Selection: www.raw-selection.com
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