What makes a founder tick, and what are the core ingredients of a successful private equity partnership? Partner and COO, Louise Corner, sat down with some of our founder partners to find out.

In October, Phoenix welcomed partners and investors to its Annual Investor Meeting at the Berkeley Hotel in Central London. The room buzzed with energy as guests gathered to celebrate the year’s successes and look ahead to the activity to come.

To mark the occasion, Louise Corner sat down with some of our founders for a lively discussion, covering everything from the ingredients of a great partnership to how each firm is adapting to an increasingly tech-driven world.

“It was a joy to share the stage with some of our fantastic founders and to shine a light on the human stories, grit and determination that lie behind the success. We often call it ‘Founder Magic’,” Louise shared.

The panel included James Morgan, Co-Founder of fast-growing cybersecurity provider Logiq; Peter Jones, Founder of B2B exhibitions giant Nineteen Group; Michael Wright, Founder of renowned agency Riviera Travel, and Chris Setford, Co-Founder of disruptive legal services platform Setfords.

Building a founder

The discussion kicked off with the big question: What are the key traits of a founder?

Peter cut straight to the point. “Each founder I meet has a similar type of DNA in them. They’re all slightly edgy. You need to be a bit crazy to try and start a business on your own.”

Michael, who started Riviera Travel in 1984 and grew it into an industry heavyweight over thirty years, suggested that many entrepreneurs learn to find unconventional solutions to everyday problems from an early age.

“I’m colour-blind. People ask me how I know when the lights change. Well, the top one means stop. If you have a problem, you automatically think around it. It’s just a different way of thinking.”

For Chris, having a shared ‘founder’s DNA’ was crucial to the business’s success. Citing research from Stanford University, he said that the most innovative founders are driven by a fundamental desire to stand out and be different.

“That desire to be different, to do something, and to be chosen, I think, drove what we did when we started Setfords 20 years ago. It’s still there now. It gave us the drive then. It gives us the drive today, and we make sure our people think in a similar way.”

Picking the right private equity partner

Next on the agenda was a discussion of why the founders began looking for a private equity partner. For many founders, it can be a difficult decision with many moving parts.

However, in James’s case, it was an easy decision. “We were growing the business, but we got to a point where we felt there might be some people out there who could help us take it to the next stage. That was the catalyst for seeking support.”

“It was about understanding that Logiq could grow significantly,” James continued. “We’ve got the runway. How can we exploit that? Partnering with Phoenix was when we understood that together we could be stronger than the sum of our parts.”

Letting go and growing the business

Louise then steered the conversation toward the founders’ first impressions of Phoenix, and the sometimes challenging act of ceding control from a business.

“The experience of letting go was hard. I’m a control freak,” said Peter. “To have someone come into your boardroom and ask you to share your toy is hard, and that’s why the balance of having a supportive partner is really important.”

For Michael, the timing for the partnership was just right. “I was 58 years old when I decided it was time for a change. My eldest child was about to go to university.”

At the time, Michael knew very little about private equity, but he was keen to explore his options.

“Phoenix came in and asked the right questions. I met some other people, and all they talked about was changing things. You’re going to buy something and then change what makes it work?”

After some back-and-forth, Michael invited the Phoenix team to his house for a board meeting, where they finalised the deal over a home-cooked meal and several glasses of wine.

“Everybody got on and enjoyed the journey. I think that’s key,” Michael reflected. “Are these people nice? Can you have a drink with them? We were equals, and you gradually feel more comfortable about letting go.”

Never waste a crisis

It wasn’t always plain sailing. Logiq’s momentum stalled when an election cycle and a government spending review led to budget cuts at key client, the Ministry of Defence.

“As a CEO who was new to private equity, it didn’t feel especially nice to enter the boardroom and tell Phoenix that our biggest customer – the Ministry of Defence – had just run out of money,” James remembered.

In spite of a few bumps in the road, Logiq stayed the course, backed by Phoenix at every turn. Today, Logiq is growing rapidly and has established itself as a leading light in the industry, making the best of a booming defence sector.

For James, it was a formative experience. “The big motto that everyone returned to was ‘never waste a crisis’. It made us progress our plans faster than we otherwise might have. And in the end, you make your own luck.”

“With another private equity firm, it could have been a really nasty atmosphere in the room. Phoenix was supportive, gave us some good ideas, and helped us execute them,” James added.

How businesses are upgrading for a tech-driven future

The discussion turned to the main issue of the day: technology, and its impact on businesses and their daily ways of working.

On the subject of AI, Chris was unequivocal. “AI will disrupt every business. In terms of AI and where it is in the lifecycle, we’re still in the Myspace of AI. It really is in its infancy. The real disruption will come with how it is deployed at a service delivery level.”

Peter offered a different view. “There’s been some existential threats to the events sector, like COVID. But forcing people apart just made us realise how much we need to be together. Is AI great? Yes. Do we use it? Yes. But will it ever replace a trade show? Absolutely not.”

A motto for life

As the conversation drew to a close, Louise rounded off the panel with few a quick-fire questions, including the founders’ mottos for life.

Michael replied: “I saw a bumper sticker in the U.S. once. Illegitimi non carborundum, which basically translates to “don’t let the bastards grind you down.”