Permanent Equity

“You create higher returns over time by using little to no debt as weird as that is in the finance world.”

“There's no way To make good long-term decisions with short-term capital with short-term time horizons. There's no way.”

“Debt is not a source of return. It is an amplifier of return. So it makes good things Be great. It can take mediocre things and destroy them. And of course it takes bad things and nukes them.”

“We've never seen a business that we want to purchase ever in the history of the firm that has debt on it. Like when we buy it, that has debt on it.”

“We take no fees of any kind, no reimbursements of any kind. There's no cash that comes from either our LPs or the companies to us. Zero guaranteed revenue”

“We don't want to buy a hundred percent of a company, right? Like if we have our choice, we're buying 51% to 70% of the business. And we want, we don't allow non strategic actors.”

“Since we're talking about comparing us to traditional private equity, I would say is one of the things that traditional private equity has gotten done better than us in some ways is, is held people accountable.”

“We've never sold anything. So, I mean, we still own everything. I shouldn't keep caveat in that. It's not like we've sold anything.”

“Minimum sort of three, three million dollars of free cashflow, not a hard and fast rule. We've done some smaller deals, but on average for new platforms were, you know, three million.”

“Often assuming for most of the deals we do that there is no growth. So we want the business to underwrite with no change in trajectory.”

“From the time we bought the first business to the time I bought the second business was four years of toiling away and correcting and learning and trying to get a good foundation of capital and into position to do the next deal.”

“Getting to serve the families and the institutions that give us capital, the trust with their capital for 30 years, the amount of trust that they have with us to give somebody capital for 30 years.”

“We found that the best way to repel the wrong people and attract the right people is to put out content that says who we are and what we do.”

“We're very different than traditional private equity in, in the sense that we don't typically put any debt on the companies.”

“Earnings can go down 50, 60% and everyone still keeps their jobs and”

“We really encourage our companies when there's adversity, like don't miss the opportunity for a good crisis and serve as well.”

“So what we do is we buy with no intention of selling the business. We typically use no debt in the transaction. We love to keep leadership teams in place. We don't we don't replace the leadership typically, unless there's a sort of acute problem. And we hold i…”

“We own swimming pool builder. We own a Heisen matchmaking firm. So executive search, but for love very interesting business. We own a military recruitment firm, a picture frame manufacturer, a fence builder. I mean, it's really all over the place. So services,…”

“We always say we're not going to be involved with a company that wouldn't be successful without us.”

“The thesis that you're gonna come into a small blue collar, you know, sort of main street business and transform the business in any sort of reasonable timeframe with, you know, fancy technology is likely a pipe dream. you're gonna have a lot of cultural entr…”

“So if you don't come in and change anything, you should probably expect the company to perform kind of how it's performed in the past. the more you start changing systems and changing out people it increases the upside opportunity, but it also increases the d…”

“So look, we paid three times for a business. We've paid 10 times for a business. Those would kind of be the, I would say, rough, you know, yardstick to use in terms of range. Most of the time we're paying four, five, six times.”

“You know, I would say the model that we prefer is to grow out, which is you do more deals of similar sizes or in, you know, sort of a similar range, not bigger and bigger deals.”

“I mean, the last check we wrote was a forty million dollar check, which is, that's a big check for us.”

“I don't have a degree from a fancy school in finance. I, you know, I don't have any of the traditional markers.”

“I hold two types of investments. I hold highly illiquid small private investments, right? In these companies that we, that we've acquired and cash and that's it. Like literally I have the, it's the most barbell strategy I've ever seen right now.”

“We've encouraged them to stay outside of the fund model and try to find a way to partner with us to just build and hold something long term, and then, but we aren't necessarily enough capital for them, maybe. In some cases we are, but in some cases they want t…”