Johnson: Emerging private equity firms must resist the pressure to chase volume
Mark Johnson · Innovation in Private Markets 2: Mark Johnson – New Leaders in Private Equity at Astra (Capital Allocators, EP.193) · May 6, 2021 · at 46:59
Mark Johnson, co-founder of Astra Capital Management, discusses firm-building discipline and maintaining investment quality standards over deal volume.
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“It sometimes seems when you start a business that is a private equity firm and your product is deal making, the impetus is to say, well, let's go do some deals because that's the product we need to go produce. But the inherent tension that everyone needs to understand and really wallow in, if you will, is we got to do the right deals. We got to have what one of my partners calls our North Star, which is Not just doing deals, and not just doing deals because we're, we are paid to find and do deals, but doing great deals, and making sure that the deal we do is an astral quality deal.”
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