At this small buyout firm, talking about AI for cost-cutting is off-limits

Core Insights - Tide Rock focuses on using AI to grow businesses rather than cutting costs, which is a departure from the common narrative in the industry regarding AI's role in efficiency [2][6] - The firm has a unique investment strategy that involves acquiring founder-run businesses during pivotal moments in their owners' lives, emphasizing growth over financial engineering [5][3] - Since its inception 13 years ago, Tide Rock has achieved an organic revenue growth rate of 24% per year across its portfolio [7] Company Strategy - The mandate at Tide Rock prohibits discussions about using AI or technology for cost-cutting, instead prioritizing business growth [2][6] - The firm has been employing AI engineers for two years, focusing on enhancing business operations rather than reducing expenses [2] - Tide Rock does not utilize debt for acquisitions and manages a total of $1 billion, including current investments and available capital [3] Investment Approach - Tide Rock targets founder-run businesses that are at a critical juncture, such as impending retirement or personal challenges, which leads to a more protective attitude from sellers [5] - The company hires experienced executives, such as chief marketing officers and chief revenue officers, to drive growth in acquired businesses, contrasting with traditional private equity practices [5] - The firm has completed over 50 acquisitions, with a clear focus on growth rather than merely financial restructuring [3]