Interview with Kevin Mundt, President of Vestar Resources & Managing Director of Vestar Capital Partners

BrownHen interviewed Kevin Mundt, Brown ‘76, President of Vestar Resources & Managing Director of Vestar Capital Partners, Boston, MA.

1. Kevin, you were a highly respected consultant in a major firm. Do you recommend that a person interested in entrepreneurship spend some years with a consulting firm?

Not necessarily. I will say that a consulting career does provide incredibly steep learning curves. One can take advantage of the exposure one can acquire in a short time in various industries. So it’s an attractive career experience, but not a requisite for success as an entrepreneur.

2. When you were a consultant, you were well known for your writing. Do you recommend that aspiring entrepreneurs spend time writing articles or even books?

I don’t necessarily recommend that entrepreneurs write articles or books early in their careers although successful entrepreneurs usually have a long history of successes and failures, and thus have much to share in a book.

I co-authored a book, which involved three other colleagues—including one of the founders of Corporate Decisions—who possessed superior writing skills. I think I am one of the worst writers. For me, it was a way to codify our intellectual property and get our ideas to the marketplace. It turned out that book was a fairly effective marketing tool. 

3. You were one of the founders of Corporate Decisions, Inc., which was acquired by Marsh and McLennan. What are some key lessons that you learned from starting a company?

I learned innumerable lessons from co-founding Corporate Decisions, building it and running it for fourteen and a half years before selling it to M&M.

One, every startup is bankrupt, even if you just got $100M in financing. You still have to build and prove your products and services.

Two, you will face difficulties and challenges that will eclipse everything else; these are the ones you didn’t predict, could not have predicted. Even with a great education and great consulting experience, our resourcefulness was continually tested.

Another challenge that we faced as a professional services firm—first as a startup and later when we have grown—was finding the right people. We thought the hardest thing was finding new clients and hiring new help would be easy. It was the reverse; hiring great people was a real challenge for us.

4. Is there a right time to be an entrepreneur?

Yes, I believe there is a right time and place in one’s life to start take the entrepreneurial path. Starting a company will consume you. It takes a tremendous amount of emotional energy, intellectual energy, and incredible perseverance to see your way through hard times.

As an entrepreneur, you can never divorce yourself from asking the question, “Is this the right time for me?” Not just the right market or the existence of a demand, or a vacancy in the consumer space, etc. I co-founded a company when I was in my late twenties and single, and I was able to devote myself to building it and running. It was an incredible experience.

5. Do you miss the excitement of starting and running your own firm?

When you are starting something new, it is very exciting because it brings forth things you have yet to accomplish. I’ve co-founded and built a successful company before selling it. It was a fabulous experience. At my age, I don’t miss starting a new company because I really enjoy what I am doing now at Vestar, where I work with portfolio management companies, head up Vestar Resources (research branch), and advise management buy-outs in specialized large to middle upper markets.

My work taps into all my skills and experiences from 24 years in management consulting and the last 15 years in consumer product and retail. I started advising Vestar in 1992 when the firm was three years old. I got to know many of the partners, including Vestar’s founder Dan O’Connell, Brown ’72, whom I met on the freshman football field; so it was an easy transition when it was time for me to leave Marsh and McLennan.

6. As you know, the entrepreneur’s path is filled with trials and errors, and also failures. What’s a valuable insight for entrepreneurs to keep in mind when they’re experiencing setbacks?

As an entrepreneur, you should not lose sight of what your ultimate goal is and why you are in the business; you should not allow setbacks to derail you. You also need to have the courage to be honest and realistic about the situation that you are in. Recognize what is going on, what is causing your challenges, and develop a plan of action.

7. Would you speak about fear as a motivation or hindrance toward accomplishment / performance? How has that played a factor in your path, if any?

In my case, fear of failure was incredibly motivating for me. I was able to channel it into a motivation; I learned that from sports. I think many former athletes may recognize that little bit of nervous feeling—that little pit in one’s stomach. This pushes me along.

8. Currently, you are Managing Director at Vestar Capital Partners. Please discuss how your office interacts with the head office in New York.

Indeed New York is our headquarters, our deal center and the heartbeat of all activities. Our Boston office focuses on the private equity market and portfolio companies in five vertical areas: financial services, media, healthcare, consumer/retail and diversified manufacturers. Today’s technology facilitates our communication process; we work closely with our NYC colleagues and I am usually in New York two days a week.

9. Where do you see the entrepreneurial opportunities of the future?

I think it is an amazing time to be alive. There is an incredible atmosphere in the technology, medical and media sectors, to name a few. I think there is plenty of opportunity to be creative in every segment of every business.

10. While at Brown, you earned varsity letters in football and track, and you were also a four-time All-Ivy selection in track. You currently serve as the Chair of the Advisory Council on Athletics at Brown. What role do you see for athletics in undergraduate education?

Through football and track, I learned how to work closely with a group of individuals, share a common goal, and achieve success. We found ourselves in tough situations and learned to turn them around. We suffered a bitter defeat, losing to a team that we should have beaten. As an athlete, I suffered a lot of setbacks, which taught me humility. I learned that hard work might make you better. To be the best you have to work even harder. There is a correlation between effort, preparation and success. While I possess a tremendous respect for what I learned as an athlete at Brown and have applied that to experiences in the real world, I would add that many successful individuals were not athletes. I really enjoy chairing the Council on Athletics; for me, it is a wonderful way to give back to the school.

11. What is the latest insight (about life, work, play) that you have culled and would like to share with BrownHEN?

• Never stop learning. I am still learning that it is a wonderful gift that one should give to oneself.
• Always take your career seriously, but never take yourself seriously.
• Never settle for anything but excellence, surround yourself with the best.
• So much about life is about attitude, with the right attitude.

12. You have a son who is in the class of 2011 at Brown. Is he also involved in track or football?

My oldest son Trevor was very involved in football and lacrosse in high school, but he decided not to pursue sports at inter-collegiate level. I am not sure which path he wants to pursue, yet.

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