"But at one investing firm, cost-cutting is practically a forbidden word. "The mandate across the company is don't talk about using our resources in AI or tech to cut costs or create efficiencies," Tide Rock CEO Ryan Peddycord told Business Insider. The firm has had AI engineers for two years, but they're aimed at growing business, not cutting, said Peddycord."
"The San Diego and New York-based firm, which invests in smaller businesses than your typical private-equity giants, does not use debt to finance its acquisitions. It manages $1 billion, including its current investments and dry powder. It has done over 50 acquisitions, with growth, not just financial engineering, as its goal. "Our foundation is, and our principle is, that we are focused on being growth engines for these businesses, and that's where we want to focus our resources," Peddycord said."
Tide Rock prohibits using AI or tech resources to cut costs or create efficiencies and dedicates AI engineers to growing portfolio businesses instead. The firm manages about $1 billion, including current investments and dry powder, and has completed over 50 acquisitions with growth, not financial engineering, as the objective. Tide Rock does not use debt to finance acquisitions and targets founder-run companies when owners face a catalyst to change, such as retirement or family illness. The firm focuses resources on being a growth engine that scales revenue and operations across portfolio companies rather than pursuing headcount reductions.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]