Prediction certainty 3/5 debate potential 3/5

Barber: Venture bubble from 2019 to 2022 will produce real carnage

John Barber · John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31) · May 19, 2022 · at 44:51

John Barber, founder and managing partner of Cohesive Capital, discusses investing pet peeves and speculative market excesses with Ted Seides.

0:00 / 0:09exact quote · 9.7s
720p mp4 · rendered on demand · StarZero watermark
“I think there's going to be some real carnage that's come out of the most recent two, three years. In some of the, what I'll just call overall venture bubble, cause it's not just tech, et cetera.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from John Barber

Insight
Barber: Co-investments are not adversely selected but driven by check sizes
“Some people believe that co-investment in its own right is negatively selected. I don't, patently don't believe that because almost every single deal we do is because somebody needs more money. Never because like, oh, our normal equity check is a hundred, but …”
John Barber May 19, 2022 ▶ 21:27 John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31)
Opinion
Barber: Sub-$1B non-tech businesses cannot go public in modern markets
“Unless you are a super growth, super techie company, you can't get public these days. And that's part of the boom of the private equity industry. Like the companies I took public as a 28 year old could not go public today. They can only be owned by private equ…”
John Barber May 19, 2022 ▶ 30:33 John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31)
Opinion
Barber: Commodity-oriented cyclical businesses do not work well in private equity
“I think we've decided that very commodity oriented cyclical businesses don't work in a private equity setting very well. It doesn't help that everybody also just hates oil and gas and you're better off in more nimble vehicles where you can get in at the right …”
John Barber May 19, 2022 ▶ 32:54 John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31)
Insight
Barber: Requiring unanimous investment committee votes discourages honest dissent
“Well, if you have everybody unanimous, then no one wants to be negative during the process. And nobody wants to say, I don't like it, okay, I'm good. So let somebody say they don't like it and say no. And I really thought that was genius.”
John Barber May 19, 2022 ▶ 37:07 John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31)
Assertion Contradicted
Barber: Every Drexel Burnham lender and equity holder recovered all their money
“And one of the things most people don't know is not only did every lender to Drexel Burnham get all their money back. We, as equity holders got all our money back at the end of the day, it was a short term downturn in the high yield market with too much concen…”
John Barber May 19, 2022 ▶ 12:42 John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31)
Insight
Barber: Quick rejections in co-investing are almost as valuable as commitments
“Quick no's I've learned are almost as good as yes's. And people often just say, wow, that's just so awesome. You're telling us no, like this quickly without, you know, drawing it out.”
John Barber May 19, 2022 ▶ 17:26 John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31)
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 700 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.