Paul Richard: Finding Unexpected Opportunities in Private Equity
For Paul Richard, a career in private equity didn’t come fast enough. As he steps back from his position as CEO of PRP Diagnostic Imaging and prepares for new challenges, he says there are common perceptions about private equity that are not the norm.
“They’re often seen as cutthroat environments focussed solely on short-term gains, and for that reason are not a first choice for many senior executives contemplating their next career step,” he explained.
However, Paul’s journey from corporate executive to successful private equity-backed CEO provided just the opportunity he was looking for to challenge him mentally and make a difference in the world. His story provides compelling evidence for why experienced leaders should consider this path.
The Path to Private Equity
With a background as a chemical engineer in Canada, Paul built his career through operational roles in petroleum, mining, and manufacturing before moving into senior positions with global corporations, including Mars and Novartis. But despite his success in the corporate world, he found himself frustrated by bureaucracy.
“I was always quite entrepreneurial at heart, in the way I looked at a business. I was always trying to add value,” Paul explained. “The corporate world wasn’t agile enough nor truly aligned with a common purpose.”
His introduction to private equity came while exploring options to establish his own healthcare clinics. Despite initial hesitation due to private equity’s reputation - “Oh, they’re really cutthroat... they’ll sack you as quick as you make a mistake” - he discovered a different reality after being introduced to multiple private equity groups by Allura Partners.
The Private Equity Difference
The contrast between corporate and private equity environments became immediately apparent. “The alignment is incredible – it creates an environment where ambitious executives can thrive,” he observed.
“Whereas the corporate environment can be quite individualistic, in private equity, everyone is aligned with growing and taking risks while rewarding success. It’s not a caretaker role.”
The results speak for themselves. Paul’s first private equity-backed venture saw him turn around a loss making underperforming business in three months, leading to an AU$80 million exit. His second venture proved even more successful, growing PRP Diagnostic Imaging from $400 million to over $900 million in 18 months, then carrying it through with the next investor and continued growth.
Keys to Success in Private Equity
A common misconception about private equity-backed firms is that hands-on leadership only works in smaller organisations. Paul strongly disagrees: “Regardless of the size of the business, you need to identify the critical parts of the business, think big and act like it’s small.” The personal approaches that he attributes to his success in private equity leadership roles are:
Goal Orientation: “I’m humble enough that I don’t have to be the expert. As a CEO, it’s about setting clear direction and helping the teams get there sometimes in their own way.”
Hands-on Leadership: “I roll up my sleeves, I get into clinics, and I sit side by side, shoulder to shoulder with people and talk to patients. And it doesn’t matter what size company it is, a CEO should be hands on in the process of the critical path.”
Rapid Decision-Making: “If it’s still not working after three months, and we’re not getting any headway anywhere in the business, you have to pivot.” The worst failures are the ones that you don’t realise soon enough.
Focus on Critical Priorities: “I delegate the jobs that aren’t as critical for the growth of the company but need to be done.” But don’t delegate detailed follow-up on the critical priorities.
Advice for Corporate Executives
For executives considering the switch to private equity-backed companies, Paul emphasises the importance of being:
Growth-oriented and ambitious,
Well-organised and disciplined,
Open to rapid change and willing to fail fast,
Comfortable with hands-on operational involvement, and
Focused on outcomes rather than process
He said it’s a transition that requires a mindset shift from long-term strategic planning to rapid execution towards a long-term picture of success. “Corporate strategic plans are that in five to 10 years we’re going to look like this... In private equity, you say we want to get to X. How fast can we get there?”
The Verdict
Looking back on his transition, Paul’s only regret is not making the move sooner: “It’s been the best thing for me. I often wonder why I didn’t start this 10 years ago.”
“I’m now looking at how I can scale up my approach to lead even bigger organisations and make even bigger impacts in the world. I’m investing time in my childrens’ development – not to necessarily direct them into private equity but to encourage them to pursue what they love; to enjoy a career that brings them personal rewards – whatever that may be.”
For senior executives seeking environments that reward initiative, quick decision-making, and robust execution, private equity can offer compelling opportunities that can accelerate professional growth and financial rewards. The key is finding the right partner who shares your vision and approach to value creation and then embracing the challenge.