Pinecrest Blog

Barrett Kingsriter Guest Interviews on PlayMakers Talk Show

Barrett Kingsriter, Founder and Senior Managing Director for Pinecrest Capital Partners, was a Recent Guest on PlayMakers Talk Show with Steve A. Klein to discuss the investment banking firm, his career path and pursuing his entrepreneurial dream.

To listen to Barrett’s radio interview, click here.

Steve A. Klein:
As Senior Managing Director of Pinecrest Capital Partners, Barrett Kingsriter concentrates on merger and acquisition advising, capital raising transactions and advising companies on strategic and growth initiatives. Pinecrest Capital Partners is a premier investment banking firm based in Dallas that offers exclusive advisory services to middle market companies with values typically ranging from $25 million to $500 million dollars. By focusing on high-touch advisory and one-stop solutions, Pinecrest works to position clients with a goal of maximizing transaction outcomes and realizing the full value of their companies. Barrett has focused on advising on business strategy, private placement for companies on a variety of industries and stages of development, and corporate formation. His extensive expertise at successfully managing complex transactions crosses a broad spectrum of industries, including energy, healthcare, industrials, manufacturing, aerospace, financial services, technology and construction.
Well, Barrett, welcome to the PlayMakers Talk show.

Barrett Kingsriter:
Thank you, Steve. Appreciate being on the show.

Steve A. Klein:
Well you’ve attended SMU, Oxford and Cambridge. You were studying political science and international law—almost sounds like an education for a political career. Was that what you were aiming for at the time?

Barrett Kingsriter:
I’ve always had an interest in politics, Steve, and it’s something that I would consider certainly later on in my life. I think an ideal politician is not a career politician — it’s one who has had enough success to be able to pursue those interests and is educated to that point. So, one day hopefully the opportunity may present itself.

Steve A. Klein:
Did you know while you were doing that, that you were going to go into the financial services industry because you’ve come a long way in a short period of time. Was that in the back of your mind as you started?

Barrett Kingsriter:
It was an option, and I had strong proclivities there. But I think my focus at the time was really just sharpening my mind. I didn’t know necessarily what I was going to get into professionally.

Steve A. Klein:
For a lot of people who don’t know what you do, explain what it is all about. Explain how you work with companies, how you raise money, and what you do.

Barrett Kingsriter:
Investment banking at its core is really a finance role in an industry. We advise companies on how to raise capital and how to go through a sale process. Or on the buy-side, how to go through an acquisition of another company or of assets, but it’s much more than finance – it’s behavioral in nature, it’s emotional, it’s psychological. With private companies, which is where we focus and specialize, we work with founders and family owners, sometimes the business is five years old; sometimes it’s 75 years old. And in those scenarios, the businesses are often almost a member of that CEO and owner’s family; it comes home with them at the end of the day, it’s talked about at the dinner table. So it’s a very emotional process when they go through a sales transaction. It’s certainly finance at its core, but we help people through life transitions and their businesses.

Steve A. Klein:
I would almost think it’s like getting rid of a child.

Barrett Kingsriter:
It’s very similar.

Steve A. Klein:
I mean you are attached to it for those who have had their business for a long-time, especially if it’s been in the family.

Barrett Kingsriter:
It’s true.

Steve A. Klein:
It sounds like, very difficult. You’ve only been doing…you started the company – correct me if I’m wrong, since you started your company in July 2014?

Barrett Kingsriter: 
Correct.

Steve A. Klein:
Did you work with other companies of similar build before you did this?

Barrett Kingsriter:
I have. I have being doing investment banking in the Dallas community for approximately a decade.

Steve A. Klein:
This is also a very competitive industry, isn’t it — especially in this day and age, especially here in Dallas.

Barrett Kingsriter:
Especially here in Dallas, it is.

Steve A. Klein:
So what sets you apart? Why should someone do business with Pinecrest Capital Partners and Barrett?

Barrett Kingsriter:
One of the reasons we formed Pinecrest is to be able to focus exclusively on family and founder-owned private companies. And I think there’s a number of very good investment banks that are out there. One of the things that really set us apart is our care taking of our clients. And I think that if people were to speak with our clients, and we often encourage them to do so before they end-up hiring us, what they will hear is not only were we successful in bringing a very good financial transaction to the table, but we manage the process well to the point that they knew what their lives were going to look like after the deal is done, in that we custom tailor the process to really match their transaction goals and desires.

Steve A. Klein:
Clearly there’s a lot of due diligence that goes into any client you’re working with. Matter of fact, I did some research and I found a quotation from Phil, I think you did some business with him, he said, “the Pinecrest team took the time to understand our motivations and goals for an investor. Got it every step of the transaction process and delivered the best possible outcome.” My guess is that’s what you’re looking for from every single client that you work with.

Barrett Kingsriter:
That’s exactly what we’re looking for. These processes are six to 12 months in duration on average. At the end, not only are you close with the client, but it’s a huge hurdle to overcome getting a deal closed and so the best satisfaction is them looking back on it and thinking favorably on the process and being happy with the outcome.

Steve A. Klein:
I would think as an investment banker – investment advisor – that you almost become embedded into the client’s company because you have to know every single thing about them if you’re helping them either gain capital or even sell the company.

Barrett Kingsriter:
That’s true. Often times we do become embedded in the company, and it’s almost a preference of ours in certain circumstances. We’re an industry generalist, and so we are much more experts on the process of taking a company through a sale or a recapitalization process than we are in any given industry. And so we want to become intimately knowledgeable of the business’ operations, not just so we can advise them well, and represent them well in the process, but also so we can add value from an operational stand point as we do go through the process.

Steve A. Klein:
Well, you’ve obviously developed a style, a culture for your company. Has anything or anyone been a big influence on your life in terms of how you have developed and run your company?

Barrett Kingsriter:
I think over time, I’ve had. I’m very fortunate actually to have a number of influencers at various stages in my life. One in particular is a local individual named Dr. Jim Denison. He was a former pastor at Park Cities Baptist Church, and he runs a nonprofit organization now called Denison Forum. In my time with Jim, I really admired how he manages the culture of his organization and how intentional it is. And that was something that we really strived for when we founded Pinecrest. For our employees, it’s a reflection of how we work with our clients and so we wanted to have an environment that really fostered creativity, hard work, good communication, honesty and integrity in everything that we do so that’s what we strive for.

Steve A. Klein:
You mentioned that you were a generalist in terms of the types of companies you’re working with. If you were to identify the ideal client, what would that client be?

Barrett Kingsriter:
We focus on size and certainly to a degree, industry. There are some industries that we don’t spend much time in, but from a size standpoint, these clients are doing generically $25 to $500 million or so in revenues. Valuation is typically driven by earnings and so we use revenue as a simple proxy for determining size. But we do focus on healthcare principally, certainly energy, manufacturing, distribution, business services, technology, software companies—areas where the business can be comfortably and easily explained to financial buyers as well as to strategic buyers.

Steve A. Klein:
Well, if I’m going to sell my house, I know who to go to. I can find a realtor to do that, but a double question here—how do companies find you, A., and B., how do you find most of your business?

Barrett Kingsriter:
It’s a good question, one that we talk about a fair amount as we consider what our appropriate marketing strategy should be for the firm, but fortunate to say that currently all of our clients and most of our clients historically have just simply come from referrals from other clients, either existing or previous who have had good experiences with our team. We often get referrals from other transaction-related professionals so lawyers, accountants, and wealth managers, anybody who is an existing trusted advisor to a business owner. It’s uncommon, or actually I’m not sure it’s ever happened, where somebody will just Google search “Pinecrest Capital,” or “Dallas investment bankers” and come up with our name and lob in an inbound phone call. So we try and get introduced through trusted advisors that way.

Steve A. Klein:
I would think that the most trusted people for many individuals and companies would be there professionals—their CPA, their attorney, something like that move them in that direction so I can see how you would want to befriend them and make referrals that way.

Barrett Kingsriter:
Absolutely, especially ones that we’ve had the opportunity to work with before. And so it becomes a good cycle, if you have a good experience working with another professional. It’s important for us, for our clients to put together a solid team around them. That’s their investment banking advisors and us, it’s their accounting advisors and firm, and it’s their lawyers, their tax advisors, so we have a cadre of individuals that we typically work with and we see routinely from deal to deal.

Steve A. Klein:
Well, you’ve been in business for less than two years—where do you go from here with the success you’ve had? How much higher can you go? How much larger can you get?

Barrett Kingsriter:
I think that the market for M&A activity is naturally very strong right now and has been for some time, and there’s plenty of room left in this market. And, so I think for the next two, three, four years it’s going to be a great time for business owners of private companies to think about going through a sale process. Part of our business that is growing as well is advising companies that are preparing to go through a transaction at some point of time in the future. So our traditional investment banking focus is really walking somebody directly into a sale process and taking them through that process. An updated focus of our advisory is really that preparation process where the transaction is really three to five years out and we are advising CEOs to manage and grow their business with that transaction in-mind. So I think a lot of our growth is going to come from that area of our business.

Steve A. Klein:
Tell everybody if they should want to get in touch with you or your company how they can find you on the web.

Barrett Kingsriter:
Our website is pinecrestcap.com and we can be contacted through our website or through our main phone number.

Steve A. Klein:
As an entrepreneur, you’ve only been doing this a short period of time. You’ve had a tremendous education to get you to where you are—what advice would you give entrepreneurs that would want to start a business, not necessarily investment capital or investment banking?

Barrett Kingsriter:
The best advice I can give them is where we see the vast majority of our clients be successful, and that’s passion. You have to be all in when you decide to start a business and be an entrepreneur. This is something that you eat, sleep and breathe. And that’s what helps your business become successful. It’s important to be able to reach critical mass as quickly as you can so that a business becomes sustainable on its own. That’s what we advise, if you are going to go out and start something, you got to be all in.

Steve A. Klein:
Absolutely. Well, Barrett, thank you very much for being a part of PlayMakers Talk Show.

Barrett Kingsriter:
Thank you Steve, appreciate it.

Steve A. Klein:
Barrett Kingsriter is the Founder and Senior Managing Director of Pinecrest Capital Partners and that website again is pinecrestcap.com.

 

Barrett Kingsriter and Bobby Renkes are Registered Representatives of and Securities Products offered through BA Securities, LLC
Four Tower Bridge / 200 Barr Harbor Drive, Suite 400 / W. Conshohocken, PA 19428
Member: FINRA, SIPC
484-412-8788