#1
#1 out of 112.4K est. views
business1d ago
At this small buyout firm, talking about AI for cost-cutting is off-limits
- Tide Rock says its mandate forbids using AI to cut costs, focusing AI on growth instead.
- The firm manages about $1 billion and has completed over 50 acquisitions since launch 13 years ago.
- AI is used as an operational tool, not a cost-cutting shortcut, with examples like faster CRM integration.
- Founders may sell to Tide Rock when they have a catalyst like retirement or a family illness.
- Tide Rock emphasizes growth-driven metrics, with organic revenue growth of 24% per year since launch.
- AI-assisted sourcing helped find non-public information to identify potential customers for portfolio companies.
- The firm uses central resources, including a centralized talent team and CROs, to drive growth.
- Peddycord notes AI for growth is integrated across portfolio companies, not just separate projects.
- The company uses AI to speed up processes like CRM implementation from 12–18 months to 30–45 days.
- Tide Rock’s approach centers on growth engines rather than cost-cutting through AI.
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