Alexander Taubman, CEO of Long Lake Management, describes how applying AI automation to legacy service companies fundamentally shifts their unit economics.
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Taubman: Long Lake HOA business accelerated from 0-5% to 20%+ annual growth
“We're fastest growing company in the HOA industry. Now we are growing organically. We, when we invested in the businesses, they're typically growing zero to five percent a year in terms of volume. We're now growing 20 plus percent a year.”
Insight
Taubman: Direct ownership drives better business outcomes than selling SaaS
“We think that you can drive better win-win business outcomes with deeper alignment. And so by actually owning the companies and owning those customer relationships directly, we can drive better, better results. Software companies are wonderful. We partner with…”
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Taubman: 80% of Long Lake's AI platform infrastructure is shared across verticals
“I'd say roughly 80% of the infrastructure is shared across the verticals, and then there's a lot of work to take it and deploy it into those end markets, and the deployment involves mapping workflows, understanding data sources, cleaning up data sources, integ…”
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Taubman: Long Lake deploys AI to acquired companies within days
“In the beginning, it took us over a year with our first acquisitions to actually, you know, find the real potential of AI and see it in the business outcomes. But now within days of partnering with a company, we can deploy this very quickly and see immediate i…”
Disclosure
Taubman: Talent leaves legacy PE for Long Lake's AI-native approach
“We have folks from Blackstone, TPG, HIG, and mostly the reason they come to Long Lake is because, you know, even though these firms are extraordinary firms at what they do, they're not AI native.”
Insight
Taubman: AI transformation of service businesses requires a two-to-five-year cycle
“You can't do this in a year. You can't do this even in two years, three years. This is a multi-year transformation. These are these are sort of compounding effects where as you, as we talked about earlier, as you sort of give your people better tools, you get …”