3G Capital

“Yeah, it's like a 25% free cash flow yield within the first year or so on our equity.”

“We'll only buy one business every few years, but we study a lot of them.”

“The company pays a lot of dividends today, by the way, we receive two thirds of our notional equity check a year.”

“We had this big returns in companies like RBI and where I think we made 28 times the original billion plus capital we put in, and we had a 30% IRR in 14 years and all, and things like that”

“Then you fast forward to today on a company three times as big in sales than what we bought. And again, a function of fast international and domestic expansion or restaurant count and basically launching A boneless product, which is a chicken sandwich.”

“We paid around four billion, and it was doing around four hundred and fifty million or so of EBITDA. Maybe a 150, hundred and seventy five million dollars of trailing capex at the time. So high 203 hundred ish of unlevered free cash flow.”

“There is no substitute for that, particularly if you're going to hold it for a long, long multi-decade period. It needs to be a good business. I don't know that we are one of these people like a Steve Jobs or someone that's really, really smart and the genius …”

“To the extent that the partners were able to acquire a good business, one of the partners would take a CEO role in that business.”

“And so we granted sizable stock options for To top the 150 people in the organization to become owners of the business.”

“Convincing the sellers in that case that you would have financing, because it's hard even to conceive of that today, but a four billion dollar LBO in 2010 was by far the largest deal after the crisis.”

“We ended up going public in 2012, year and a half into this, mid-twelve, and this was a late 2010 closing, and between the dividend that was paid and the proceeds of selling quarter of the business or whatever that was, we returned a 130% of capital, give or t…”

“You can see the result of that in a company like RBI, where today, 80% of the leadership team is people that are grown into the company.”

“If you were to compare and contrast the approach at Three G Capital with a more traditional private equity, Approach. I think the three main points I would make is one, we are the largest investors. We, the partners and affiliated entities are the largest inve…”

“My co-founders have been investors of AB InBev now coming on 35 years. We investors in RBI for 14 years now and counting.”

“It's 18 times acquisition, buys down to about 12 times.”

“In spite of all the publicity the zero-based budget gets, the portion of that value creation that is directly associated with the efficiencies and therefore with the zero-based budget is small. I mean, frankly, the majority of that growth came from, again, the…”

“I would make regular trips to business schools, get the resume books in advance, and cold email folks who I thought had impressive resumes, and if you get an email from, say, Cold email CEO or CFO of this company. I'm on campus, and do you want to meet? I got …”

“We levered, what, quasi seven times, six and a half times off the gates. And we were a few years into this process back to two and change, or three, or not even three.”

“The business of Burger King was significantly smaller than the brand. I mean, it turned out that I wasn't alone. So the brand was a much bigger thing than the business, which is a great opportunity, meaning of course there is growth of the brand, but growing t…”

“Don't be afraid to make a big bet on someone if you really believe in that person. Even if maybe that person isn't a hundred percent ready at the time, don't be afraid. Make the bet.”

“We don't like to think of that being delineation between ownership and management. And like the people who are running the company are the people who own the company. And I think it results in them being more entrepreneurial. It results in them bringing this o…”

“Then we had the Kraft investment, which was merged with the Heinz investment, but it was a totally separate vehicle. That investment, we just basically got our money back. Wasn't a successful investment, but he validated a fundamental premise of ours, which is…”

“So Ted, we started 20 years ago originally as a family office of my co-founders, so just house capital, and what we intended to do originally was to replicate this approach of being long-term operating owners of good businesses, a model that was originally dev…”

“Which in hindsight, it's like, oh, it was really obvious that Tim Horton's EBITDA is now 80% higher or whatever it is, and the cash flow doubled. We've expanded it globally.”

“I had the great opportunity to interview the guys at three G Alex Baring and Daniel Schwartz talking both about three G and their Burger King deal, which is one of the most successful private equity deals ever.”