Seides: David Rubenstein memorizes prepared questions before interviews
“David Rubenstein, when he does his interviews, prepares very detailed questions, spends a lot of time understanding how to word them, and then he memorizes the questions before he goes into the interview.”
Rubenstein: Carlyle Group launched with four co-founders and $5M
“We had four of us at the beginning. The person from Marriott, his name was Steve Norris, joined us. Then we went out, and he recruited, with my help, another guy from Marriott, Dan Daniello, and then we recruited Bill Conway, who was then the CFO of MCI. Those…”
Rubenstein: Business fundraising is harder than political or philanthropic fundraising
“When you think about it, there are three types of fundraising. One is for philanthropic, one is for political campaigns, and one is for business. I'd say the easiest is probably political because in many ways it's a smaller amount of money, typically until the…”
Rubenstein: Fundraising lacks dealmakers' social status in private equity
“I do think that fundraising is something that doesn't have the social status that maybe dealmakers have accorded themselves. In other words, if you look at the totem pole of people in the private equity world or in the investment world, people generally don't …”
Rubenstein: Carlyle could have been more profitable with a cutthroat culture
“We could have made more money and been more profitable had we been more cutthroat in hindsight.”
The best fund in any vintage is usually a new boutique
“The best performance of any private equity fund in any given vintage year will almost certainly be three guys or three women in a garage in Palo Alto who come up with a new venture fund, and all of a sudden they make 25 times their money.”
Rubenstein's family office backs an enormous number of first-time funds
“In my family office, I invest an enormous number of first funds because I think they're smaller and they probably need me more and I can probably pay more attention to what they're doing and there'll be more co-investment opportunities and so forth”
Rubenstein: Carlyle stock performed better after founders stepped back
“Our stock price has done much better under this way than when Bill and I were running it”
Rubenstein: Family office enables higher-risk investments than Carlyle allows
“I decided I would do it for a couple of reasons. One, I can diversify. Carlisle doesn't invest in every area. Two, I could be more involved in some ways by taking bigger risk if it's my money. I don't have a fiduciary responsibility to outsiders. So I could ta…”
Rubenstein: Carlyle sold Amazon at IPO and passed on Facebook and Netscape
“Well, the mistakes that I made and not pursuing Mark Zuckerberg when he was at Harvard, when my now son-in-law was prepared to introduce me to him, or when we kind of sold our stake in Amazon at the IPO. And then also a young man showed up in our office one ti…”