The Investor With Joel Palathinkal

Guest: James Tannahill, MBA – Plocamium Holdings (SFO)
Host: Dr. Joel Palathinkal
Date: September 5, 2025

Episode Overview

This episode features James Tannahill, President of Private Equity at Plocamium Holdings. With a background spanning Wall Street, biotech, and family-run manufacturing, James brings a unique blend of technical, financial, and operational insight. The conversation offers a deep dive into equity research, private equity strategies for the lower middle market, value creation in healthcare and industrial sectors, and the evolving landscape of consulting-for-equity models. The duo also explores how data, healthtech, and value-added services intertwine in today’s investment environment.

Key Topics & Discussion Points

1. Background and Career Journey

[01:11 – 04:50]

• James’ Path:

  • Began on Wall Street in equity research, focusing on biotech and institutional investors.
  • Helped create a machine learning tool for hedge funds to analyze market segments.
  • Joined Jefferies to lead solutions for healthcare data challenges.
  • Transitioned to Vaxart, a public vaccine company, during COVID:

    "I was employee number, I think 17, and we grew up to 200 people." — James [02:39]

  • Attended business school, then joined Plocamium Holdings, a family subsidiary with 70+ years in manufacturing and PE.

• Plocamium’s Approach:

  • Partners with lower middle market firms, focusing on hands-on operational improvement.
  • "Get outside the boardroom, get on the factory floor, you know, get beyond the spreadsheet and actually fix operations." — James [03:32]

2. Explaining Equity Research: Buy Side vs. Sell Side

[04:50 – 08:47]

• Role Clarification:

  • Buy side aids portfolio managers in investment thesis creation.
  • Sell side provides research (e.g., for hedge funds, bankers):

    "I was on the sell side…teams on the equity research side produce investment research for…institutional clients of that bank." — James [06:44]

• Career Advice:

  • Those with technical backgrounds (e.g., MDs, PhDs) can apply science to finance.
  • Equity research requires strong technical writing and modeling skills.

3. M&A and Capital Allocation in Healthcare During COVID

[08:47 – 15:27]

• Acquisition Strategies:

  • Biotechs sought manufacturing assets (e.g., bioreactors) and IP for both capacity and regulatory advantages.
  • "We bought somebody else out strictly for those assets…Some of the technical workforce, but they did not have any IP that we were interested in." — James [10:11]

• Risks & Regulatory Hurdles:

  • Timeline for regulatory approval can be 6–12 months post-acquisition.
  • "Any time you tack on additional time to a clinical process, you're including additional risk." — James [13:38]
  • Emphasis on risk-weighted models and people skills for decision-making.

4. Plocamium’s Private Equity Strategy

[15:27 – 21:48]

• Deal Sourcing & Structure:

  • Focus on being the first and only institutional partner; prefer proprietary deals.
  • Hybrid approach: deploys balance sheet and consulting expertise.
  • Strict screening: track record, value sustainability, and, most importantly, the people.
  • "We meet people, walk the shop floor or the factory floor, lay eyes on the operation, and…decide do we want to work with this company?" — James [17:39]

• Co-Investments:

  • Avoids co-investing; prefers solo, hands-on engagements.

5. Ideal Companies & Sectors of Focus

[19:13 – 22:52]

• KPIs and Valuation:

  • Less focus on EBITDA thresholds; emphasis on enterprise value ($10M–$100M).
  • "We're a small shop…We might work with one company a year." — James [20:39]
  • Primary sectors: healthcare, manufacturing, and national security technology.

• Agility:

  • Plocamium uses its own capital (no LPs), allowing for flexibility and long-term partnership.

6. Automation, SaaS, and Sector-Specific Value Creation

[22:52 – 24:26]

• Comparisons of software vs. manufacturing businesses regarding scalability, automation, and enterprise value.
• Importance of KPIs such as free cash flow from operations and potential for product/market expansion.

7. Consulting-for-Equity & Evolving Agency Models

[24:26 – 33:10]

• Industry Trends:

  • Agencies increasingly seek equity in clients instead of just retainer fees, aligning incentives.

  • "The new marketing agency is…doing marketing, they're helping you strategically with your brand…they'll actually install a sales team…all you have to do as an operator is really just fulfilling the business." — Joel [27:02]

  • Risks for operators: dependency, possible price hikes, and loss of data control.

  • "Data is created, not found…be sure that you are able to lock down your data, even if third parties are using it." — James [29:47]

• Legal Analogy:

  • Law firms often take early equity as compensation—similar models are spreading.

8. Content, Research Services, and the Role of Media

[33:10 – 40:39]

• Content as Value-Add:

  • Content is slowly becoming essential for building trust and inbound opportunities.
  • "Content is the most least invasive way to engage with partners because they're consuming your knowledge." — Joel [34:30]

• Plocamium’s Services:

  • Due diligence, geopolitical/financial/operational analysis, market studies, and academic collaborations.
  • Example: Advised a PE firm on national security opportunities, connecting them to suitable targets.

9. Health Trends: Health Extension & Personal Data Ownership

[40:39 – 45:57]

• Health Extension vs. Longevity:

  • Discussion on maintaining muscle mass and activity after 40; references to Brian Johnson’s high-profile health optimization.
  • "What Brian is trying to accomplish I think is out of reach for the vast majority of people, but I think it's a great…example of what can be done if resources and the cost can go down." — James [42:54]

• Personal Health Data:

  • The trend towards democratizing access to one’s health data is crucial.
  • "Our data, our health data, actually ours? … We should be in control of our data and our health, to your point." — James [45:30–45:50]

Notable Quotes

• On Risk in Biotech M&A:

  "During COVID everybody's going after…the target, which is launching a new product. Any time you tack on additional time to a clinical process, you're including additional risk." — James [13:38]

• On Proprietary Sourcing:

  "Finding opportunities isn't hard for us…it's honestly finding the right opportunity." — James [16:16]

• On Consulting-for-Equity Models:

  "There's a handful of companies that generate a lot of great cash flow just providing a service… and then what happens is they provide so much service and so much great support that those companies are growing in revenue and they're losing out because the money that they're making is very static." — Joel [25:04]

• On Data Ownership:

  "Be sure that you are able to lock down your data, even if third parties are using it…" — James [29:47]

Timestamps for Important Segments

• 01:11 – James’ career background and journey to Plocamium Holdings
• 06:17 – Explanation of buy side vs. sell side equity research
• 09:31 – M&A strategies and risks in biotech during COVID
• 12:46 – Regulatory challenges and risk modeling in acquisitions
• 16:10 – Plocamium’s unique sourcing strategy and deal structure
• 19:49 – Core sectors of investment and valuation approach
• 24:26 – Agency consulting-for-equity models and implications
• 33:02 – Content creation and aligning incentives for growth
• 36:22 – Plocamium’s research and advisory services
• 41:56 – Health extension and democratizing health data
• 45:30 – The importance and challenges of personal health data ownership

Tone & Style

The episode maintains a conversational but highly informed tone, balancing personal anecdotes with actionable insights. Both Joel and James speak candidly, offering practical advice and reflecting on emerging trends with curiosity and openness.

Summary Takeaways

• Deep operational expertise and hands-on partnership are central to Plocamium’s investment model.
• The lines between service providers and equity partners are blurring through consulting-for-equity trends.
• Data ownership—whether for business operations or personal health—is emerging as a critical risk and value lever.
• In PE, value creation extends well beyond spreadsheets, often requiring direct intervention and a nuanced understanding of people and processes.
• Creating and sharing content is invaluable for building trust, education, and long-term business relationships.
• New frontiers in healthtech and wellness, such as health extension, offer fertile ground for future innovation and investment, but accessibility and data control remain key challenges.