Carl Katz: TCG ‘Not Beholden’ to Private Equity

TCG differs from its peers in the technology solutions brokerage (TSB) market with its approach to private equity and MDF.

So says Carl Katz, who recently moved to the Florida-based firm to work as its executive vice president of partner sales and chief operating officer. Katz explained that TCG’s decision to refuse outside funding and avoid using market development funds (MDF) as a profit center helps the company stand out among its rivals.

TCG’s Carl Katz

“There are companies who started in technology, went to the large tech brokers and were nickeled and dimed to the point where they couldn’t even function,” Katz told Channel Futures. “That’s because it’s upward of six figures in sponsorship dollars to get any visibility with the channel managers and partners.”

Katz previously worked for Nextiva and ThreatProtector, which both partnered with TCG. He shared how his tenure at those companies will shape his mindset at TCG. He also spoke extensively about the relationship between private equity and MDF usage in an interview with Channel Futures.

We have edited the transcript for length and clarity.

Channel Futures: Why did you choose to move to TCG?

Carl Katz: I moved to TCG for several reasons. First, I’ve been friends with [TCG partner] Dan [Pirigyi] and [co-founder and CEO] Lew [Rubin] for about 24 years. I really like that they’re entrepreneurial, ethical and pragmatic in their approach to business. That’s hard to find these days. I also like that TCG is privately held and hasn’t accepted any private equity money, which gives us the ability to focus on the partner while not having to tailor every program for profitability. That’s huge. Other technology brokers are more beholden to these private equity companies, which really clouds their decision-making and how they approach the market and their partners.

TCG and national technology brokers as a whole have been experiencing tremendous growth during the past few years, and this is only the tip of the iceberg. TCG’s partner program is simple. We provide partners with high residuals. 100% SPIFF pass-through, local and regional channel managers, an excellent in-house support and order processing team, and the opportunity to sell over 230 suppliers providing various technology solutions. I like to say TCG is the right place at the right time.

CF: What are some examples of how your competitors are beholden to private equity in day-to-day processes?

CK: Some of our competitors are owned by publicly traded companies, and some of our competitors have recently received quite a bit of private equity money. This clouds judgment. Instead of looking out for the partner and creating programs to benefit the partner, these larger brokers are beholden to the bottom line and meeting operational goals and growth goals. TCG is not beholden to those goals. If we want to run programs and do projects with the partners that are unique in the marketplace, we don’t have to …