“Intellectual curiosity drives success in private equity.”
Caroline Woodworth is a Managing Director at General Atlantic, specialising in investments in the firm’s Financial Services sector. Here she explains why personality and curiosity go way beyond learnt skills in Private Equity – and how there are no rulebooks as to what success looks like in this industry.
Caroline Woodworth In her own words
What does being a Managing Director at General Atlantic involve?
I lead the financial services and financial technology investing in the London office and there is a trifecta of different aspects to my job. Firstly, I go out to identify areas in an underlying market that have growth drivers that may lead to a specific investment opportunity. The second part is working alongside management teams in a diligence process – external and internal – to get people excited about the opportunities. If that is successful, the third stage involves managing that company on its growth journey. We can often be investors for five to seven years, building value and ultimately driving both organic growth within the business – but potentially, M&A as well.
What’s kept you in the game?
There’s been huge growth in the industry – and the ways to express an idea about an investment opportunity. There’s a very wide execution of that opportunity. 12 years down the road, I’ve seen the market and different investment strategies develop. It’s the variety that has kept me very intrigued as my job description has changed – as I’ve moved both across organisations and then up through General Atlantic.
How do you keep the plates constantly spinning?
In this job, you’re rewarded for your ideas and then you need to manage those at different periods of time as the idea matures. Then you need to be constantly thinking of how the market is evolving. How do you trace the idea and then thread the needle between a market opportunity and a specific investment opportunity. It’s exciting, but it does require several spinning plates. Or maybe juggling balls is a better analogy; if one drops, you just pick it back up again.
How do you deal with the ebb and flow of excitement and overwhelm?
There is a fine line between excitement and anxiety. But you do need a team around you that you trust, and people you can learn from. The most amazing thing about this business is it’s an apprenticeship business. There’s no rulebook here on how to do Private Equity. Firms look at investment opportunities through different lenses; there are various risks and opportunities that need to be weighed up. And having people to act as sounding boards around you, helps bring the abstract back to reality. Our job is not spreadsheets; above all, Private Equity is about people and ideas.
How do you switch off?
There’s huge benefit in finding ways to stop your mind, because this is a job that you can spend 24/7 thinking about, if you’d let your mind do so. And when I do stop, I have my best ideas. My work world is very different to my home world. I have a two-year-old daughter and that creates balance for me and the time to disconnect.
How have things changed for women in Private Equity over the 12 years you’ve been in the sector?
Financial Services does have more of a bias towards being male heavy. But as I look round now, there are far more women in mid and senior levels than there were before. I think it’s changing slowly, but it’s a lot more about different backgrounds and diversity, rather than gender specifically. It needs to evolve in a way that feels real for organisations; we can take action to grow the entry level and then hopefully retain individuals over time and the intellectual diversity – this will ultimately change the senior level. But we all need to keep working at it.
What’s your opinion on the Level 20 mentorship scheme?
Level 20 carries out very detailed personality matching, which I think is phenomenal. This involves thinking through where somebody is in their career, what sectors they cover and what questions they may be asking – and trying to align these with somebody who can specifically help. The best mentors are the ones where there’s a trusted relationship, with open conversations on a range of topics. In the Private Equity world, your work and life intertwine. You need to be able to discuss things like starting a family and raising a child – all within the context of how get a deal done, how to navigate an auction process, and how to think about winning the hearts and minds of management teams. Someone who understands this balancing act is hugely valuable.
Can women ‘have it all’ in Private Equity?
I’m not sure what it means to ‘have it all’. I think it’s about finding balance and being able to manage the different calls on one’s time. I must admit I didn’t really understand the concept of trade-offs until I had a baby. Having a family means there’s another (wonderful) draw on your time – on your heart and mind. I’m firmly of the view that this makes me a better investor and ultimately a better partner within my firm.
Why is that?
It’s about being honest. The best advice I’ve ever had is that you need to be your own person. On the topic of gender, as a successful woman in Private Equity, there can be an idea of what you should be. But I’ve realised over time, it’s whoever you want to be. And that’s not in a handbook. If you’re not authentic, you aren’t ultimately successful, in my opinion. It took me a long time to realise that it’s not about being something that can be written on a piece of paper.
What advice would you give someone considering a career like yours?
I would say always keep learning – and believe in yourself. The technical aspects of what the perceived barriers in Private Equity are – such as corporate finance or modelling skills – can be learnt. What makes people successful later in their career is personality and ultimately intellectual curiosity. There are many different jobs within what we all call Private Equity. The market and underlying industry are changing as we speak. I hope to be part of the journey of bringing more women and people of diverse backgrounds into this exciting, evolving industry.
