Interview with David Porter – Managing Partner, Apposite Capital
The important role of venture capital is widely recognized. It supports entrepreneurial talent and turns ideas and basic science into products and services. The private equity firm Apposite Capital LLC has helped build a series of successful companies in the Healthcare and Life Sciences sector.
Meet David Porter, Managing Partner of Apposite Capital and a chemist by training. He’s a driving force in finding “the next big discovery” and turning scientists into successful entrepreneurs.
Hometown: Bournemouth UK
Current position: Managing Partner
First job: Small companies research analyst
Favorite job: Current one
Education: BA (Oxon) Chemistry Years in the field: 14 What you learned from Chemistry: Analytical skills
How I got here in 10 words or less: Determination to work in financial services and some luck
Q:
How and when did you become interested in majoring in chemistry?A: From my first chemistry lesson I was very interested in Chemistry
Q: How do you see your role as a scientist and how has it changed over the years?
A: Now I consider myself trained as a scientist with an analytical approach to business
Q: You’ve built Apposite into a firm with an impressive portfolio of companies in the US and Europe. How did you get your first job in private equity?
A: I was working for the Nomura International Corporate Finance department when they started a captive LBO operation under Guy Hands and I started working for him on major UK privatization purchases
Q: What is the nature of your job day-to-day?
A: A bit of everything. I work with our IR Manager to build our investor base, with the investment teams to source deals and assist with portfolio management and with administration on general management issues. But I see my main role as business development and trying to grow the business
Q: What do you like about working in private equity?
A: Variety, intellectual stimulation, challenge, real situations, real rewards, both personal and team based
Q: You are exposed to many new companies seeking capital. What do you look for in these companies? How do you identify the next discovery?
A: Management is the key factor for me. Good management maximizes returns and keeps you out of trouble. Good management always makes the major discoveries and builds the valuable companies
Q: How do you keep up with innovation and discoveries in science and technology?
A: Like most people I am overwhelmed with information, the best quality comes from our advisory team
Q: The last decade has seen a huge growth in new private equities but now many firms are struggling. What are the opportunities for scientists who would like be in private equity?
A: It is a difficult time because most firms are downsizing. Probably best to try an indirect route in this climate i.e. start a company, take an MBA, accountancy, some consultancy firms are good preparation
Q: How do you think the field of private equity and startup companies will change when we come out of the recession?
A: Not fundamentally – but PE will go back to growing companies and turnarounds and not financial engineering to make returns
Q: What’s next for you?
A: I want to widen the scope of Apposite and enter new areas
Career Advice from David
Best advice: Do not give up – take a long view
Skills you need: Financial
Degrees you should go for: MBA
Where you should start: Start up or young company or somewhere to learn finance
Professional organizations to contact: National Venture Capital Association, Kauffman Foundation. Business schools with a PE focus