Sourcing Enablement: The RevOps of Private Equity

We've had several discussions recently with firms considering a distinct BD hire—let’s call it "sourcing enablement" or "sourcing operations."

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These roles are designed to enable the entire team—whether it’s an existing BD team or the investment professionals—in their sourcing efforts. Typically, firms that already have a dedicated BD function with one or two sourcing professionals are the ones considering this addition, but given that all firms engage in sourcing, this could be a value-add hire for many others.

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a "RevOps-like" role in sourcing would integrate technology, streamline processes, and enhance collaboration across deal teams, business development, and portfolio management teams.

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The consistent question is how to accomplish more predictable and repeatable deal sourcing. Implementing goals, tracking metrics, and establishing accountability are key; the idea is that this role would be fully responsible for driving those outcomes.

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The impact someone in a sourcing enablement role can have is significant. They hold the team accountable for their sourcing responsibilities, ensuring that nothing falls through the cracks. For example, in a firm with four partners, each managing their own banker relationships, this person collaborates with the partners to establish the appropriate check in cadence, keeps tabs on interactions, and reminds the team when it’s time to check in. More importantly, they take ownership of the overall pipeline, attending every Monday morning meeting with a clear view of where each opportunity stands and who is responsible for the next steps, effectively driving the BD process forward. This role is akin to Revenue Operations (RevOps) in a sales organization, where the goal is to align sales, marketing, and customer success teams to drive revenue growth and operational efficiency.

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In the context of private equity, a "RevOps-like" role in sourcing would integrate technology, streamline processes, and enhance collaboration across deal teams, business development, and portfolio management teams. This person can also establish and track KPIs, ensuring that the firm’s sourcing strategies are data-driven and effective.

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I've had conversations with hundreds of existing BD professionals - so I can say confidently that there are already many who are balancing this operational oversight in addition to their primary role of building relationships and sourcing deals. A dedicated hire focused on sourcing enablement would allow them to excel in what they do best - building relationships. This specialization can lead to more efficient and successful deal origination, ultimately driving better outcomes for the firm.

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Though there are a handful of professionals already in these dedicated enablement or operations roles, it’s still a relatively new concept in private equity. I’m sure there are more out there who play this role, even if it’s not reflected in their title, and I would love to connect with them to understand more about their responsibilities and how they’re blending "enablement" with traditional BD.

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If you’re in a role like this—or know someone who is—please feel free to reach out. I’m eager to learn about the different approaches firms are taking to optimize their deal sourcing function.

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