People, every show

André Bourbonnais

Global Head of LTPC, BlackRock. On 1 show, 1 appearance. The Shows tab opens the full record on each.

investorexecutive

Before joining BlackRock in 2018, Bourbonnais served as President and CEO/CIO of PSP Investments and Global Head of Private Investments at CPPIB. At BlackRock, he built and leads the firm's direct, long-horizon private equity initiative, Long Term Private Capital.

What they said10 Shows1

Everything André Bourbonnais said on any show that made the record, most notable first. Each card names its show and opens the statement there.

CAPITAL ALLOCATORS Insight

Traditional PE fee structures incentivize managers to scale funds for themselves

“The management fee was there to cover the operating costs of the management company, and as the fund grew 10, 20, 40 times, the fees charged were not reduced by the same factor, and that structure is really conducive for the manager to increase the size of the…”

André Bourbonnais Jul 22, 2019 ▶ 19:47 André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)

CAPITAL ALLOCATORS Disclosure

BlackRock LTPC uses an LP-approved fixed budget instead of percentage fees

“We went back to the roots of private equity where management fee was really designed to cover the operating costs, and now we have a fixed budget approach, and that has a significant impact because first, we ask our investor to approve the budget, but second, …”

André Bourbonnais Jul 22, 2019 ▶ 20:15 André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)

CAPITAL ALLOCATORS Insight

Rotating PE owners and capital structures every few years disrupts companies

“It's a very disruptive activity for a company to change the partnership, the capital structure.”

André Bourbonnais Jul 22, 2019 ▶ 23:05 André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)

CAPITAL ALLOCATORS Insight

BlackRock LTPC rotates internal deal teams to re-underwrite companies without selling

“What we're saying is that we can do the same thing either with a different deal team, with different operating partners, with different consultant on a regular basis. And achieve the same result without all the cost friction of selling the company three or fou…”

André Bourbonnais Jul 22, 2019 ▶ 31:02 André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)

CAPITAL ALLOCATORS Insight

Deal teams are transaction experts; IC chairs provide pattern recognition

“When somebody has spent three, four, 500 hours on a transaction, they're the expert. You're not. But you hope that your training, that your experience, that the fact that you've seen so many transactions is really going to help you focus on the right question …”

André Bourbonnais Jul 22, 2019 ▶ 10:13 André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)

CAPITAL ALLOCATORS Insight

Pension plans are long cash but short human capital for direct deals

“So I'd been trying to build more long-term strategy within our pension plan, but those plans are long cash and short human capital, so it was difficult to get the origination capabilities that we needed And probably more importantly, the value creation and ass…”

André Bourbonnais Jul 22, 2019 ▶ 13:00 André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)

CAPITAL ALLOCATORS Disclosure

BlackRock Long-Term Private Capital avoids selling companies just to crystallize carry

“What we're trying to do here is really to Be more company focused and look at buying good companies and making them better and making them great. As my partner, Colm Lanigan says, cost reduction is not really a strategy, so we are extremely focused on growth, …”

André Bourbonnais Jul 22, 2019 ▶ 15:42 André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)

CAPITAL ALLOCATORS Disclosure

BlackRock LTPC eschews dividend recaps and maximum leverage for moderate debt

“We're not going to use leverage to max it out and dividend recap, because that's really doesn't work in our model. We're going to use leverage in a moderate way, but we will be able to use it and increase the leverage on a timely basis, but really in an effort…”

André Bourbonnais Jul 22, 2019 ▶ 32:05 André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)

CAPITAL ALLOCATORS Assertion Supported

Since 2000, 500 companies have been owned by three consecutive PE funds

“There's a statistic that says that since 2000, there's 500 companies that have been owned consecutively by three or more private equity fund, which means that those company would continue to do really well in the private domain, have been owned now for 1215, 1…”

André Bourbonnais Jul 22, 2019 ▶ 17:38 André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)

CAPITAL ALLOCATORS Disclosure

BlackRock LTPC targets $500M to $1.5B equity checks in 10-15 companies

“So equity check of between 500 and a billion and a half. So let's call it 10 to 15 companies at the end. And again, the holy grail is really that once we have this portfolio of seven, eight, nine, 10 companies, that it generates enough cash flow to let us cont…”

André Bourbonnais Jul 22, 2019 ▶ 37:31 André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)

One line per show, most statements first. The link opens André's full record on that show: the calibration, argument clarity, speaking style and every statement made there.

Show	Role there	Eps	Statements	Record
CAPITAL ALLOCATORSLEDGER	Global Head of LTPC, BlackRock	1	10	100% 1/1	full record on Capital Allocators →