Description

In this episode of The Private Equity Podcast, Alex Rawlings is joined by Jeffery Raju, Founder & CEO of Stonehill Business Services.

With 15 years of experience across fund administration, controller, and CFO roles, Jeffery has worked with emerging managers ranging from sub-$10 million funds to multi-billion-dollar platforms.

Jeffery explains why emerging private equity managers must treat their firm as an investment management business rather than simply an investment shop, and how building the right financial infrastructure early can support fundraising, improve decision-making, and create a platform capable of scaling.

They discuss the differences between the finance functions of a $50 million fund and a $1 billion platform, the operational expectations of sophisticated LPs, and why managers should become institutional before expecting institutional capital.

Key Topics

• Why private equity firms must treat finance as a business-enablement tool rather than a compliance exercise.
• How budgeting, forecasting, tax planning, and financial reporting improve decision-making.
• The finance infrastructure differences between emerging funds and billion-dollar platforms.
• Why smaller managers often need fractional financial leadership.
• How LP expectations change as managers move from friends-and-family capital to more sophisticated investors.
• The operational due diligence sophisticated LPs expect.
• Why strong historical returns alone may not be enough to secure institutional capital.
• When emerging managers should begin professionalising their finance function.
• Why becoming institutional should happen before, not after, scaling.
• Jeffery’s recommended books for entrepreneurs and business leaders.

Timestamps

00:00 – Introduction to Jeffery Raju, Founder & CEO of Stonehill Business Services
00:30 – Jeffery’s background across private equity, venture capital, and fund finance
00:56 – The biggest financial infrastructure mistake emerging managers make
02:28 – What operationally mature private equity firms do differently
04:18 – Finance infrastructure: $50M funds vs. $1B platforms
06:04 – How finance and operational maturity impact fundraising
06:24 – High-net-worth investors vs. sophisticated LPs
07:21 – The operational due diligence sophisticated investors expect
08:14 – Why exceptional investment returns aren’t always enough
09:19 – When should a PE firm build an institutional-level finance function?
10:08 – Why firms must become institutional before they can scale
10:34 – Key inflection points for bringing in financial leadership
11:01 – Moving from syndications to a first fund
11:59 – Jeffery’s recommended books and resources
12:40 – How to connect with Jeffery Raju and Stonehill Business Services
13:37 – Closing thoughts

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