Eric Taylor, founder and CEO of Trident, is challenging conventional private equity thinking with a bold vision for the future of small and medium-sized business investing. In this conversation, he shares why he believes independent sponsors will reshape the private equity landscape, how Trident builds true long-term alignment with its partners, and what it means to “reimagine private equity” while driving both financial returns and community impact.
The private equity landscape is undergoing a fundamental shift, especially in the small to medium-sized business space. For years, value was created through financial leverage. Today, the most significant returns are generated through "operational alpha"—the hands-on expertise to make a good company truly great. That’s where independent sponsors excel. They aren’t generalists in a boardroom; they are seasoned operators with decades of experience in a specific niche. Our core thesis at Trident is that by empowering these specialists with institutional capital and strategic support, we can unlock a level of growth that traditional, disconnected financial buyers simply can't access. We see this as the future, where value creation is driven by genuine industry knowledge, not just spreadsheets.
Our entire partnership ethos is built on the idea that transactional relationships create transactional results. True alignment has to be deeper than that to grow our investments. For us, it begins with a foundation of mutual respect and a shared strategic vision for what a business can become over a five to ten-year period, not just until the exit. We establish clarity on governance and decision-making from day one, so our partners feel like true co-owners. The economic structure is a natural outcome of that shared foundation; we ensure our partners have the opportunity to realize a significant financial stake in the enterprise value they help create, which far outweighs any short-term fee. When you build the relationship on the right principles, the financial alignment follows naturally.
For us, "reimagining private equity" means breaking down the traditional barriers that have kept institutional capital away from the small business landscape. There are 30 million small to medium-sized businesses in the U.S., and they represent an unprecedented opportunity for investment and growth. Trident is at the forefront of this shift by using a combination of best-in-class investment diligence with data and technology to streamline the private equity process. This allows us to unlock this asset class, resulting in lower acquisition multiples and greater potential for returns. We're not just investing in businesses; we're investing in the backbone of the American economy.
We firmly believe that our success is intertwined with the success of the communities we invest in. When we partner with an independent sponsor to grow a local business, we're not just looking at the balance sheet. We're focused on professionalizing the operations, driving digital transformation, and creating sustainable, long-term growth. This often means creating new jobs, providing better benefits, and strengthening the local economic fabric. We see a clear link between a business's health and its involvement in its community. By helping everyday small businesses reach their next chapter of growth, we're not only delivering returns for our investors but also creating a positive ripple effect that extends far beyond the company itself.