George Stelling is currently the Managing Partner of MarginXL Capital Partners, an Irving, TX, based investment and advisory firm focused on helping companies use advanced analytics and operational improvements to improve profitability. Co-Founded with Robert Charles, MarginXL Capital is operating in stealth mode today, with big plans to launch its website and business officially before Thanksgiving. As a co-founder and managing partner, Stelling created this specialized investment and boutique advisory firm to assist investors and management teams improve their profits using data, software tools, and insights. George is a highly sought after expert on investing in special situations and partnering with management teams to execute turnarounds.
Currently working out of Irving, Texas, he provides a host of advisory services to mid-market organizations in the technology, financial services, and technology markets looking into improve their cash flow, profits, and data analytics. As someone constantly striving to improve the performance and market value of companies, George spends the bulk of his day finding and partnering with executives and company owners to help solve difficult business problems. Stelling works closely with Boards of Directors, Company Owners, CEOs, Chief Marketing Officers, Chief Information Officers, and other executive leaders to understand problems using facts and data and to create the right set of comprehensive organizational initiatives to bring about rapid profitability for his clients. As an investor, Stelling often benefits directly from his recommendations and as an advisor, he has been known to create successful fees that pay out when the results are achieved.
Stelling works closely with company CEOs by strategically focusing on a variety of functional areas and end of end processes, including customer segmentation, supply chain optimization, order-to-cash processes, procure-to-pay processes, new market research and product innovation. He also spends some of his recruiting top talent for his company’s team as well as talking with institutional investors about a potential pool of capital to invest in companies that can benefit from adopting advanced analytical processes and tools. His company recognizes the value of being committed to improving society, and MarginXL Capital Partners has plans to donate a certain percentage of its profits and time to worthy causes throughout the world. He is also an avid biker, hiker, and amateur astronomer. George Stelling is a frequent traveler to Arizona, where he enjoys biking and hiking some of the state’s most beautiful mountain ranges as well as star gazing with friends and colleagues.
George Stelling graduated magna cum laude from Cornell University, located in Ithaca, New York, where he obtained his bachelor of arts in government. After completing his undergraduate studies, he eventually went on to obtain his master’s in business administration (MBA) from the Amos Tuck School of Business at Dartmouth College, located in Hanover, New Hampshire. Stelling began his corporate career in 1987 as a consultant for Price Waterhouse in Houston, Texas and Washington, DC. He worked in the organization’s software, information technology, and business process re-engineering practices division. Eventually, Price Waterhouse merged with Coopers & Lybrand to form one of the world’s largest accounting, tax advisory and management consulting firms.
At Price Waterhouse, He was honed his data architecture, software, and business re-engineering acumen. Afterwards, he landed a consulting position with Bain & Company. As a manager and consultant, Stelling worked in Irving, Texas, and eventually was a leader in Bain & Company’s South Africa offices in Johannesburg and Cape Town. Eventually, George was recruited to become the SVP, Direct Marketing and Chief Information Officer (CIO) for the Franklin Mint, a manufacturer of collectible goods located in Franklin Center, Pennsylvania. The company sells a wide range of collectible goods through traditional print catalogs, direct mail, the Internet and other marketing channels. Stelling used his talents and expertise at Franklin Mint to help improve the company’s marketing and channel operations.
George was instrumental in creating strategies, financial plans, operational and marketing initiatives that helped the Franklin Mint grow its profits and cash flow.
In 2002, George Stelling joined ON Semiconductor as a Vice President of Pricing, Operations, and Strategies. ON Semiconductor, located in Phoenix, AZ. is an analog and discrete semiconductor manufacturer and at the time, was a portfolio company of TPG Capital. George was recruited into an executive leadership to help turnaround the company’s financial position by developing and implementing a wide range of initiatives aimed at revamping the company’s pricing processes, marketing and sales capabilities and international operations. During his tenure, ON Semiconductor’s stock increased substantially from under $1 to $11.
George Stelling’s performance at ON Semi also ushered in an era of improved efficiency, better pricing controls, lower cost, and strong investment returns for ON’s investors. George was instrumental in recruiting new global marketing teams, negotiating quarterly and annual pricing contracts for OEMs and ODMs, and also helped the company adopt new business rules around the pricing of commodity semiconductors. He was hand picked by the CEO to improve enterprise-wide intelligent business practice in order to enhance corporate value creation. His efforts led to the creation of a corporate strategy and development group to drive restructuring and adopting of best practices. Such efforts led to the restructuring of international operations, adopting of a new capital budgeting process, lab utilization improvements and the adoption of key performance indicators.
In 2005, Stelling became the Chief Information Officer (IO) and Vice President of Global Services for NVIDIA, a $2B market leader in digital graphics processors and scientific computing. He was recruited to help facilitate productivity improvements through NVIDIA’s global workforce, information systems and infrastructure. During his two-year tenure, he played a role in helping the company double their EBITDA dollars. NVIDIA’s stock price appreciated from eight dollars a share to $38 during Stelling’s tenure, as gross margins accelerated, costs were reduced, and market share increased.
At NVIDIA, George partnered with sales and marketing executives to define and implement new supply chain and customer channel management systems and processes to drive channel growth. These solutions helped improve visibility into channel pricing and allow for postponement strategies in the company’s supply chain that lowered costs. Stelling was also instrumental in building new global indirect procurement and strategic sourcing functions, which saved costs. He helped restructure the company’s information technology and real estate operations, which included the opening of an offshore service center to deliver systems maintenance, new reporting capabilities and real estate analysis at a lower cost. His initiatives also improved accountability and faster speed of delivery of products and services.
In late 2007, George Stelling co-founded Prophet Equity, a Dallas, Texas-based private equity firm. As COO and Managing Director, he played a major role in buying underperforming and distressed companies in the United States and Canada and improving their EBITDA and cash flow. Stelling and the Prophet team raised $250 million of capital from institutional investors to make strategic investments in a portfolio of distressed and underperforming companies. In his capacity, Stelling partnered executive management teams of portfolio companies to create and implement a broad range of strategic initiatives to help improve cash flow, market value, and operating and financial performance.
After leaving Prophet Equity in 2011, he co-founded Auxilium Capital Partners, a Dallas, Texas-based boutique advisory firm that provided advisory services to family offices and management teams in the technology sector. Throughout his career, George Stelling has been able to develop a comprehensive range of skills that many businesses and organizations find valuable.
Some of these include his ability to development strategic alliances and partnerships, to optimize supply chains, to create and manage global teams, to improve price management and gross margin generation, to segment markets, channels, and customers differently, to develop new product and service value propositions, and to define and implement profit and performance improvement programs. It should also be noted that Stelling has an extensive background in working cross culturally, including work in many different countries. Beyond the US, his experience includes work in China, France, Mexico, Slovakia, South Africa, Australia, Canada, and the United Kingdom. Throughout his career, George Stelling has been seen as a highly sought after business improvement expert that can help improve profits in companies in both distressed and growth situation sin a highly collaborative and data-drive way.
George Stelling and his business partner, Robert Charles, are rumored to be forming a new investment and advisory firm called MarginXL Capital Partners. Robert Charles is a former executive with Ford Motor Company, Computer Sciences Corporation (CSC Index), JP Morgan Chase, and Bain & Company. Sources say that that MarginXL will have two lines of business. MarginXL Capital Partners will be the acquisition side of the business and will focus on acquiring companies that have revenues of $10 million to $200 million with a focus on Special Situations investing and transition of ownership from entrepreneurs and family owned businesses. The second line of business, dubbed MarginXL Advisors, will be an advisory business to firms interested in using data to drive operational improvements, including Big Data solutions. In both lines of business, MarginXL will use a set of tools and techniques known as “Margin Acceleration”, which include using software tools around predictive and advanced analytics. MarginXL plans to on a broad group of industries including aviation, automotive, business and financial services, consumer, and technology. MarginXL Advisors will be the advisory side of the business and will focus on partnering with management teams who want to use advanced analytics and operational improvement methods to improve profits.
As the Managing Partner and Co-Founder of MarginXL Capital, George and his team are working to acquire three businesses over the next year as a prelude to raising a formal institutional pool of capital. MarginXL Capital Partners anticipates expanding its team to ten professionals by the end of 2014. It is believed that MarginXL will set themselves apart from other Private Equity Funds by staffing a select few “Data Scientists” on its team in addition to and highly experienced executives who possess direct investing and operations experience specific industries. The firm utilizes advanced analytics and created specific “Margin Acceleration” programs in each company they acquire and in each company they advise. The Firm has an unmatched ability to deliver data driven insights to Middle Market businesses in the US and Canada. Interestingly, George Stelling and MarginXL is hoping to set them apart also by recruiting an advisory board comprised of industry experts in private equity investing, line operations, and specific industries.