After the Entrepreneurial Exit: A Conversation with Sanjay Malaviya

What happens after a founder steps away from the company they’ve built from the ground up? 

Vanessa Hui sits down with Sanjay Malaviya, founder and former CEO of RL Solutions, for a candid conversation about the realities of building, exiting, and reimagining life after nearly two decades of building a company.

Sanjay reflects on RL Solutions’ growth from a small startup to a global leader in patient safety and risk management, and the emotional complexity of deciding it was time to move on. 

He discusses the unexpected challenges of stepping back from being a CEO, navigating the transition from operator to investor, and the principles that shaped his approach to wealth preservation, diversification, and philanthropy.

From humility and the value of surrounding yourself with the right people, Sanjay offers thoughtful insights into what life looks like after an entrepreneurial exit — and what he’s learned along the way.

WHAT TO LISTEN FOR

2:07 What made you realize it was time to step away from RL Solutions?

4:43 What surprised you most about stepping away from your company?

9:11 How did you start investing after selling your business?

21:26 How do you choose where to focus your philanthropy?

27:09 What advice would you give founders preparing to exit?

GUEST: Sanjay Malaviya, Founder and former CEO of RL Solutions (now RLDatix | Board member at SeamlessMD |

Malaviya Foundation | Foundation Instagram | RLDatix Website | SeamlessMD Board of Directors

CONNECT WITH VANESSA HUI

Website | LinkedIn 

Transcript

Vanessa Hui (00:01.602)
 Welcome to another episode of Forthlane Features, a podcast where we dive into the world of global wealth and asset management. I am Vanessa Hui, Senior Client Advisor at Forthlane Partners. Today I am honoured to be joined by Sanjay Malaviya for a conversation about building, exiting, and reimagining life after leading a company. Sanjay is the founder and former CEO of RL Solutions, a healthcare software company that grew into a global leader in patient safety, risk, and quality management. After nearly two decades of growth, RL merged with UK based Datix Limited to form RLDatix, which today supports thousands of healthcare providers in more than 30 countries, helping to improve patient safety, compliance, and outcomes.

Sanjay is a board member of RLDatix and I am proud to say a valued client of Forthlane. Sanjay, thank you so much for making the time to be my guest today. I am also glad we are recording today and not yesterday because I know you are a huge Jays fan and I imagine your voice might have been a little worse for wear.

Sanjay (01:17.139)
 Thank you for having me, Vanessa. Yes, I am a huge Jays fan and it was an honour to be there and witness history. We are looking forward to more history ahead. Thank you.

Vanessa Hui (01:27.958)
 We will do another episode after we win the World Series. I want to start by taking a walk down memory lane and bring you back to the days when you were leading RL Solutions. You grew RL Solutions from a small start up into a global leader in healthcare risk management. What was the catalyst that made you feel the timing was right to step away from day to day operations and leadership at RL Solutions?

Sanjay (02:07.559)
 First of all, I did not do it by myself. We had a great team and we all grew up together. No one was a seasoned veteran who classically knew exactly what they were doing. I like to joke that none of us ever really knew what we were doing.

We did well as a company and literally grew up together. The major catalyst was that we had been working so hard for almost 20 years and had built a valuable enterprise, but we were not able to move on and enjoy other things in our lives as much as we could have. Giving everyone the option to choose other paths and to focus on hobbies and interests was the major reason for considering that change.

Vanessa Hui (03:23.266)
 When you started, how many people were in the core founding group of RL Solutions?

Sanjay (03:31.380)
 I do not actually know the answer because people joined over several years. By the time we were considering options, I like to think the entire company was the core group because we built a family environment and everyone felt close. In the first four or five years we were maybe five to ten people. We did not go fast by today’s standards. We were slow and deliberate. The tortoise and the hare is a good analogy for us. Growth was controlled and thoughtful.

Vanessa Hui (04:21.870)
 Many entrepreneurs describe their exits as exciting but also bittersweet. Was there any part of the experience that surprised you?

Sanjay (04:43.186)
 I always knew it felt like family. I was very close to my colleagues and to this day they remain my dearest friends. I knew it would be tough not to see them every day and to stop building together. When it actually happened, it was harder on me than I anticipated. Intellectually I was prepared and I understood what it meant, but going through it emotionally was much harder.

The sweet part was seeing everyone who contributed to the ride experience a meaningful personal event and move on to families, hobbies, and new ventures. Even now, five to seven years later, it is great to reconnect and see what they are doing. That has been the sweet part.

Vanessa Hui (06:06.508)
 Was there a specific moment when it hit you that you had handed off the day to day operations and the way you used to run RL Solutions? A moment when it suddenly became real?

Sanjay (06:44.445)
 I have been asked that and I do not think there was one moment. I did not have a separation between work and life. My work was part of my life. When the work part went away, there was not a big external change because I was still living my life.

What did strike me was the culture. We had a fun family vibe. As much as new owners try to keep that going, it is not something that can be replicated easily. Over time, things we took for granted started to fade. For example, we had a pub in the company. It was a great hangout and everyone liked to go there. I had been promised it would never go. One day it was gone. That was a dramatic example of change I did not expect.

Vanessa Hui (08:26.508)
 After the sale of RL Solutions, you found yourself in a new role as an investor. How did you approach building an investment strategy for yourself? With new capital to manage, were there principles that guided your decisions, such as wealth preservation, growth, or diversification?

Sanjay (09:11.495)
 One thing I am good at is knowing what I am not good at. I am not an investor by training. I only ever invested in one thing, our company. I am still a big investor in our company, but I never thought about investing outside of it. Everything went in.

When options became available, my focus was preservation. I am conservative. When I met with the Forthlane group, I told them I had no idea what I was doing, so please do not ask me for investing insights. If we could preserve what I have and grow it a little each year, and allow for philanthropy along the way, that was my guidance.

Vanessa Hui (10:21.346)
 Over the years I have seen that with many entrepreneurs. You spend decades heads down building, and after an exit you can finally look up. People might assume you know financial markets because you succeeded in your industry, but it is a different skill set.

You have learned a lot as an investor. Is there anything you have learned about yourself as an investor that mirrors traits you had as an operator and CEO, or that feels completely different?

Sanjay (12:17.587)
 As a CEO you are responsible for a lot, but you do not know everything. I could not challenge our best programmer on code or our finance team on accounting details. You get lobbied on what the next best move is. You need to assimilate information quickly and make the right decision for the whole group.

That skill helps in investing. There are different ways to invest, different types of people, and varying levels of aggressiveness. All can be useful in a portfolio, but what is the right fit for me is unknown until we move along. Diversifying has helped. I split my portfolio among different groups, listen to explanations from all sides, compare results, and then make the best forward decision I can. I rely on experts. I am not trying to trump them. With different philosophies in the mix, I can learn which works better under different market conditions and adjust when the time is right.

Vanessa Hui (14:28.781)
 What I hear is humility and reliance on experts. Those are core principles of Forthlane’s approach. We spend our weeks understanding markets, and we are humble enough to know no one can predict the future. We hold client portfolios in assets that can perform across different macro environments, and we find best in class managers globally. It is like winning a decathlon by recruiting the best athlete in each event. We focus on capital allocation and bring those experts onto the team.

Beyond investing, after your exit were there other things you thought about in structuring your affairs, such as estate planning or a family office? Any key decisions right after the exit?

Sanjay (16:25.939)
 It started with knowing I would not be good at it alone. I did set aside a small portion to test myself. I have been lucky and that little portfolio is doing okay, helped by markets. I am not getting cocky.

For me, like building a company, it is about people. Aligning with people in the investment world whom I like, respect, and trust is most important, so I do not dread meetings and I trust their competence. That was the secret to building a great company as well. Make great friends who are competent and humble and build a positive culture.

I bring that to investing. I am not trying to squeeze every last penny or break records every year. Stay calm when things go wrong, do not over celebrate when things go very well, and keep an eye on the long term. It has felt natural to find the right people, like your team and a few others. It makes it easier to trust that everyone has hands on the wheel.

Vanessa Hui (18:34.894)
 I also like that you keep a Sanjay directed sleeve. Many clients have a sleep well at night preservation core and a fun sleeve for projects that interest them, to support friends, and to learn as an investor. Is there anything that keeps you up at night about the future of investing?

Sanjay (19:34.972)
 I do not stress much. When I wonder what could really go wrong, it is global events. A major crash, a war, something dramatic that affects everything. Unless I am putting cash under a mattress, you are exposed. Because I have diversified across different types of managers, most normal swings do not affect me much. Big global events would worry me, but with a long term view even major events become part of the path over time.

Vanessa Hui (20:35.372)
 There can be black swan events, but the way we invest for you includes uncorrelated returns working together to help smooth that.

Let us talk about philanthropy. It is important to you and a key way you have used your capital post exit. Tell me about establishing the Malaviya Foundation and how you decide what to support.

Sanjay (21:26.567)
 I am not especially systematic about philanthropy. I recognise that when we achieve, we do it together as a broader community. Companies benefit from the country’s climate, our communities, our education, and opportunities others do not get. It is important to give back and help others achieve their goals.

The biggest philanthropic commitment I have made is supporting Canada’s Paralympic and Olympic teams. I grew up playing sports and learned life lessons there. Look at Toronto with the Blue Jays. The city is on a high, people are happy, families come together, and we share pride. Sport uplifts. Helping elite athletes compete while wearing the Canadian flag felt meaningful. I plan to stay committed to that.

I also enjoy helping people I know in the community who could use support. Not as venture or private equity, but as philanthropy. Education is another focus. I graduated from Waterloo and have a scholarship there. I am involved with the University of Toronto’s engineering school and have a scholarship there as well. Engineers can impact communities, and supporting students who are starting their journeys feels right.

I still have a lot to learn and I admire big philanthropists. I put the foundation in place to have a home for these efforts. I like keeping it open so I can support causes that touch the heart.

Vanessa Hui (26:27.444)
 If a founder came to you seeking advice as they approach an exit, what one or two things would you tell them to prepare for financially or emotionally?

Sanjay (27:09.201)
 I do not love giving advice. I make as many mistakes as I have lucky breaks. From my story, do not underestimate the emotional impact of letting go of something you love. That was dramatic for me, though it will differ by person.

Financially, I think I handled it well by not overestimating my ability and by letting professionals handle the financial side. That gave me peace of mind and the ability to pursue family, golf, and other interests. I kept a small sleeve for myself. It will not change my finances no matter how well it does, but it gives me insight and keeps me engaged with what others are doing.

Vanessa Hui (28:50.190)
 What excites you most about this next chapter of life?

Sanjay (29:05.683)
 I was lucky to become a parent again. I have two older kids who lived through me growing a company with a great team, and I have a young daughter who is two and another child on the way. I value having more time for them. Being present for special moments is rewarding.

I also mentioned golf, sheepishly. I was a decent athlete until I started golfing. No matter how much I play, I cannot seem to get better. Kudos to all the great golfers. It takes time and energy. I spend a lot of time golfing partly because I invested in and purchased my hometown golf course. That gets me out there and has been rewarding and exciting. It is where I grew up and many friends are there. It is a feel good experience.

Vanessa Hui (30:37.836)
 I love the story of you purchasing the course where you grew up. Life coming full circle is meaningful. Last question, which I ask all guests. What is one lesson you learned early in your career that has stuck with you and continues to guide you today?

Sanjay (31:19.411)
 I do not know how I learned it, but it guides everything I do. What we do not know collectively dwarfs what we do know collectively. For me, that means there is no reason to feel insecure or incapable. There is so much to learn and do that no one has a monopoly on knowledge. If you can empower yourself with that mindset, you can do anything you set your mind to. Do not be intimidated by others who have done well or seem to hold power.

Choose who you are and work hard. That matters more than any single piece of advice. Move forward with optimism and the belief that anything can be achieved. Do not take things too seriously. I do not crash too hard and I do not celebrate too hard because things can turn quickly. There is happiness and calm in that balance. That has guided me in my life, in work, and in parenting.

Vanessa Hui (33:35.447)
 I love that. I was at a talk yesterday where the topic was how everyone, no matter how experienced, suffers from imposter syndrome. What you shared is almost the opposite. We can be comfortable not knowing everything because it is impossible to know everything. Stay open minded, humble, and curious on the lifelong learning journey you are on.

Sanjay, thank you so much for leaving us with that inspiring note and for sharing your authentic experience and journey. You are an incredible entrepreneur and human. I feel grateful to know you and to work with you.

Sanjay (34:43.867)
 Thank you, Vanessa. You are wonderful and it is easy to talk with you. I appreciate the time.

Vanessa Hui (34:49.614)
 Thank you.