John Barber, founder of Cohesive Capital, explains how to turn down private equity sponsor deals quickly without damaging sponsor relationships.
0:00 / 0:05exact quote · 5.9s
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“We try when we say no more often than not to make it about us, not about them. We don't want to tell them their baby's ugly.”
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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 BarberMay 19, 2022▶ 21:27John 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 BarberMay 19, 2022▶ 30:33John 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 BarberMay 19, 2022▶ 32:54John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31)
“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 BarberMay 19, 2022▶ 37:07John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31)
PredictionNot checkable as stated
Barber: Venture bubble from 2019 to 2022 will produce real carnage
“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.”
John BarberMay 19, 2022▶ 44:51John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31)
AssertionContradicted
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 BarberMay 19, 2022▶ 12:42John Barber – The Art of Co-Investing at Cohesive Capital (Manager Meetings, EP.31)
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