Last year, I met Eric Chernik, CEO of Building Controls and Solutions, in Dallas for an episode of the Driven by DCKAP podcast. Eric, a valued DCKAP customer, is a people-centric leader who believes in the power of teams, ideas, and collaboration.
He has spent over 30 years in B2B distribution, from starting at Grainger to leading a private-equity-backed company that has grown from 3 to 25 locations. Eric has seen distribution from every angle: the warehouse floor, the customer counter, and the boardroom.
Private Equity and Distribution: Building Growth with People at the Center
When we think about private equity, the first images that come to mind are often fast deals, cost-cutting, or short-term gains. But the conversation I had with Eric reminded me that there’s a much more thoughtful, human-centered side to it. Over decades in B2B distribution, Eric has seen the industry from every angle: warehouse floor, customer counter, and boardroom. What struck me most was how he frames growth: it starts with people.
Private equity can sometimes carry a reputation that doesn’t do it justice. Eric put it simply: “Sometimes private equity gets a bad reputation. There’s all different kinds of private equity companies. For the most part, they’re investment companies that are figuring out how to return rewards to their investors. They build up companies. And building up companies is usually about growth.” That line really resonated with me. So often, we hear “private equity” and think of numbers and short-term strategies but at its best, it’s about unlocking potential, creating the foundation for sustainable expansion, and supporting people along the way.
Rethinking Private Equity in Distribution
Private equity firms raise capital to invest in companies with the goal of improving their operations and ultimately selling them at a higher value. While this might sound straightforward, recent research shows the landscape is shifting. According to a Meketa report, many PE firms are holding onto assets longer due to fewer exits and slower distributions. This is pushing firms to focus less on financial engineering and more on operational value creation, the hard work of running better businesses, not just running the numbers.
In distribution, this matters a lot. Companies are building relationships: reliability, responsiveness, and trust are all built over years. When PE firms back companies with the right mindset, they can provide capital and guidance that accelerates growth without compromising the human foundation of the business.
Eric’s approach at Building Controls and Solutions is a great example. Private equity has been a partner for growth helping the company expand by adding new locations, hiring, and acquiring teams that share its values. But the real secret to their success isn’t just the capital, it’s the way they put people first.
Growth That Starts with People
Eric’s philosophy is simple: loyal employees create loyal customers. “If you really want customer engagement and loyalty, you’ve got to have employee engagement and loyalty,” he told me. It’s easy to nod at that statement, but implementing it requires deliberate choices. At Building Controls, the focus is on communication, clarity, and care. Employees understand expectations, know how the company is performing, and feel seen as individuals. Transparency is guiding principle. Sharing both wins and challenges builds trust, which is essential in a private-equity-backed company where expectations are high and timelines are tight.
Listening plays a big role in culture as well. Eric shared a small but powerful practice: asking the same question to six different people and listening to all six answers before making a decision. This is more than gathering the input, it’s about ownership and inclusion. When people feel that their voices matter, they become invested in the company’s success. It’s a subtle but effective form of leadership that’s rarely captured in spreadsheets but has enormous impact on long-term growth.
Learning Across Chapters
Eric learned the value of being close to customers, the patience required to build a strong culture, and the importance of sourcing ideas from everywhere, not just the top of the organization. This mindset of learning, listening, and experimenting is crucial for navigating both the operational demands of distribution and the strategic demands of private equity.
The Evolving Private Equity Playbook in Distribution
For years, private equity followed a simple formula: buy, fix, sell. But in relationship-driven industries like distribution, that approach doesn’t always work. You can’t rush culture, and you can’t automate trust.
Recent research shows that private equity is facing challenges with distributions. According to Meketa Investment Group, distributions for many funds have fallen to levels “not seen in recent history” due to higher interest rates, fewer IPO and M&A exits, and a valuation gap between buyers and sellers. Similarly, MSCI reports that many funds were already seeing historically low distribution rates before the recent market slowdown. This squeeze affects liquidity, limiting reinvestment opportunities and operational flexibility for companies backed by private equity.
As Eric explains, “Private equity is more of a board of directors. It’s more of a funding mechanism. They’re not running the business.” The most successful private equity partners focus on long-term value, helping companies strengthen operations, scale sustainably, and improve customer experience rather than just chasing quick returns.
For the trucking and logistics sector, which relies on long-term investment in fleets, technology, and supply chains, this approach is crucial. As the market waits for better liquidity and interest-rate relief, private equity firms are becoming more selective, backing companies that generate steady cash flow, maintain tight margins, and build resilience over time.
According to the Boston Consulting Group, firms are facing two major distribution‑shifts: first, the rise of actively‑managed products and second, the opening up of private‑asset access to retail and semi‑liquid vehicles.
From an operational angle, value creation in portfolio companies increasingly relies on distribution strategy optimization: channel expansion, geographic reach, logistics, and downstream capability become part of the PE playbook. The Accenture “Evolving Private Equity Playbook” explicitly calls out distribution & logistics improvements and channel‑strategy optimization as levers for value creation in buy‑outs.
Private equity is not only about capital deployment and exit timing, it is also about mastering distribution either to investors (new vehicles and channels) or by portfolio companies (speed‑to‑market, omnichannel, international reach). Success increasingly depends on how well general partners (GPs) can build distribution muscle.
Acquisitions with Care
Growth often comes through acquisition, and that can be messy if not approached thoughtfully. Two companies with different cultures, systems, and ways of working must integrate seamlessly to avoid disruption.The approach should be craftsman-like: assess market opportunity, ensure culture fit, talk to vendors and customers, and check the openness of leaders to learning and collaboration. A structured integration playbook ensures alignment of systems, communication, and values. This people-first approach makes employees feel part of a larger mission rather than absorbed into a new organization.
Technology and Efficiency
Technology is another pillar of modern distribution growth. Eric invests in automation not to replace people, but to enhance efficiency. By smoothing out repetitive processes whether in eCommerce, supply chain, or accounting the team can focus on higher-value work that strengthens customer relationships. The goal is smarter processes. “We want to grow without having to double the workforce every time revenue doubles,” he said. Balancing human engagement with operational efficiency is key to sustainable scaling.
Purpose-Driven Growth
What stands out most isn’t operational metrics or expansion plans, it is mindset. Growth without purpose isn’t sustainable. Eric regularly reflects on why they do what they do, reading and learning to stay sharp. This is a practical guide for building resilient organizations. Companies that prioritize purpose and culture alongside growth metrics tend to be more innovative, adaptable, and enduring.
Why This Matters for Distribution
Distribution is fundamentally human. Customers return not just because of price or availability, but because of relationships, reliability, and service. PE-backed growth can help companies modernize, expand, and invest in people but it has to respect that human core. Operational strength and culture are now the differentiators, according to both Meketa and MSCI, not just financial leverage. Capital alone isn’t enough; it has to be paired with leadership that listens, supports, and engages employees.
Lessons for Leaders and Investors
From this conversation, a few themes emerge for anyone involved in distribution or PE-backed growth:
- People First – Loyal employees create loyal customers. Transparent communication and inclusive decision-making foster engagement.
- Long-Term Thinking – Operational excellence matters more than quick wins. Slow, deliberate growth often produces stronger returns.
- Purpose and Learning – Growth without a guiding purpose is hollow. Leaders should ask “why” continually and invest in learning at all levels.
- Technology as an Enabler – Automate processes to enhance, not replace, human work. Efficiency should support better service and scalability.
Private equity can accelerate these outcomes when it provides resources, accountability, and expertise without undermining the company’s culture. The key is balance: between financial goals and human values, between speed and sustainability, and between growth and purpose.
Final Thoughts
Reflecting on our discussion, what keeps any leader driven is the pursuit of improvement: learning something new each day, refining processes, and finding better ways to serve customers. That, in essence, is sustainable growth.
It’s not just about quarterly targets or immediate profitability; it’s about building a business that grows people, strengthens relationships, and leaves room for long-term success. As Eric aptly said, “You can’t grow up a company shrinking to profitability.”
In a world where private equity often gets misunderstood, leaders who put people at the center and align growth with purpose demonstrate what’s possible. Distribution, like many other industries, thrives when capital, culture, and care converge. And that is the future of meaningful growth- grounded in human values, operational excellence, and a mindset that always asks, “How can we do better tomorrow?”
