Operational Alpha Isn’t a Buzzword — It’s Your Competitive Edge
Insights from the Global COO of H.I.G Capital
Private equity is hitting a new inflection point.
Growth is harder. Change is everywhere. Scale is everything.
And the firms that win will be the ones that operationalize alpha—not just talk about it.
That’s the central theme from my recent conversation with Jay Maher, Global COO at H.I.G. Capital, on The Distribution by Juniper Square. It was Jay’s podcast debut and it’s packed with insights.
Jay spent 30+ years across fund administration, data infrastructure, and executive operations. Now, he’s helping lead one of the premier middle-market PE firms through the next phase of growth.
Here’s what I took away from our conversation—applicable lessons for any GP looking to scale:
🔑 10 Lessons in Operational Alpha
1. Institutionalize without killing culture
Jay’s mandate is to build infrastructure—but preserve the entrepreneurial energy that made H.I.G. successful.
2. Data is the new alpha
Clean, structured data is a prerequisite for everything—from investor reporting to future AI enablement. Garbage in, garbage out.
3. Don’t boil the ocean
Break transformation efforts into narrow use cases and short sprints. Win early, build momentum, repeat.
4. Build for scale, not exceptions
As AUM grows, bespoke processes don’t. Standardization and automation are how you scale to $100B+.
5. Outsource like a partner, not a vendor
Demand transparency. Know who’s on your account, how they validate your data, and what KPIs they’re tracking.
6. Reimagine HR as a strategic platform
Centralized systems for onboarding, performance reviews, and compensation are foundational—not nice-to-haves.
7. Lead change with proof, not policy
Jay’s team created FOMO by proving internal tools worked. That got teams lining up to join—not resisting.
8. Hire tech-savvy generalists
Today’s finance and ops professionals must be tool fluent and change adaptable. Resume pedigree isn’t enough.
9. Elevate the middle office
Investment ops teams are becoming critical bridges between deal teams and finance. Invest accordingly.
10. Prepare for retail and real-time
Faster reporting. Broader access. Higher expectations. Private equity is about to look a lot more like consumer finance.
Final Thought:
Every firm will hit a scaling wall.
What you do before that matters most.
Operational alpha isn’t about buzzwords—it’s the real work behind lasting outperformance.
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🎧 Listen to the full episode of The Distribution with Jay Maher wherever you get your podcasts: YouTube, Apple Podcasts, Spotify. Just search: “The Distribution by Juniper Square.”