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Ep. 21: Lessons From Three Decades of Deal Sourcing

Summary

Glenn Oken, a BD leader across 10 funds and 150+ deals at FCP and now Mangrove Equity Partners, joins Dan Herr and Matt Rooney for a career-spanning conversation on deal sourcing in the lower middle market. Glenn's firm targets $3-10M EBITDA platform acquisitions across manufacturing, industrial services, enthusiast-driven consumer brands, and white-collar services — with the vast majority structured as majority recaps where founders retain ~30%.

The episode covers Glenn's system for covering intermediaries with precision and discipline — using CRM data to rank intermediaries by likelihood of showing relevant, winnable deals, then maintaining cadence through quarterly or semi-annual touchpoints. Glenn is emphatic about treating intermediaries as customers: responding quickly, responding in detail, and explaining rejections so intermediaries can "dial in" to the right fit. He also makes a compelling case for including BD professionals in every investment committee meeting — a practice he considers essential but acknowledges is uncommon.

A highlight is Glenn's perspective on the evolution of PE sourcing from 1989 to today — from ring binders and buy-side business brokers to CRMs and sell-side investment banks — and his argument that storytelling through exits is the most powerful sourcing message a firm can deploy.

Key Takeaways

  • Include BD professionals in every investment committee meeting — it equips them with the authority and knowledge to speak for the firm, and it's the fastest way to develop junior people
  • Treat intermediaries as customers: respond quickly, respond in detail, explain rejections, and pass referrals to other firms when a deal isn't your fit
  • Use CRM data to rank intermediaries by relevance, win probability, and historical track record — then maintain disciplined outreach cadence
  • Balance systems/efficiency with relationship-building — being "too obsessed with efficiency" can undermine the human connections that actually generate deal flow
  • Storytelling through exits is the most powerful sourcing message: describe what you did operationally, what changed, and the results
  • Hire BD people who are both analytically capable and "preternaturally human" — technical competence plus genuine curiosity and relationship skills
  • Compensate BD through equity, not just eat-what-you-kill bonuses — team-oriented comp prevents unhealthy internal competition
  • Activity begets activity: when intermediaries see you've been active and successful, they think of you for new opportunities

Guest Background

  • Glenn Oken — Managing Partner (BD), Mangrove Equity Partners. Previously at FCP (First Capital Partners). 30+ years, 10 funds, 150+ deals across lower middle market buyouts.

Topics Discussed

  • Origination and Deal Sourcing — Glenn's 3,000-deal-per-year funnel, Monday morning IC with all 14 team members, three-person BD team structure
  • Sourcing Culture — Hiring for analytical capability + human connection, including BD in IC, modeling resilience ("that was a good at bat"), BD equity compensation
  • Value-First Outreach — Responsiveness as a form of value, detailed rejections, referrals to other firms, communicating operational value-add through exit stories
  • Engaging Boutique Bankers — Treating intermediaries as customers, understanding their motivations, communicating your differentiators so they "connect the dots"
  • BD Team Structure and Compensation — Three BD partners + admin screener, equity-based compensation, team vs. eat-what-you-kill models
  • Evolution of PE Sourcing — From 1989 (buy-side brokers, ring binders, 4-5x EBITDA) to 2026 (sell-side bankers, CRMs, intense competition)

Notable Quotes

"Leaving a voicemail doesn't cut it." — Glenn Oken

"Activity begets activity. When people see that you've been active and successful, they think of you." — Glenn Oken

"If you become too obsessed with efficiency, then it's possible that someone could underemphasize relationship building, some of which may not be very efficient." — Glenn Oken

"We're really looking for athletes, figuratively speaking, who are going to be good at both. They're going to be good at thinking analytically, at process and at systems, but they're also just sort of preternaturally human." — Glenn Oken

"Don't assume that people have been doing things a long time or who are ostensibly experts have all the great ideas." — Glenn Oken

Frameworks & Concepts

  • Precision and Discipline — Precision in identifying whom to engage; discipline in maintaining cadence through systems and CRM
  • Activity Begets Activity — Visible success generates inbound opportunities; exits and closings produce more deal flow
  • Storytelling Through Exits — Using exit case studies to communicate operational value-add as the most powerful sourcing message

Cross-References