Disclosure certainty 4/5 debate potential 2/5

Heller: Cordillera structures deals to take revenue share in operating partners

Chris Heller · Chris Heller - Weird Alternatives at Cordillera Investment Partners (Manager Meetings, EP.28) · Mar 24, 2022 · at 39:32

Chris Heller, co-founder of Cordillera Investment Partners, discusses structuring investments in niche alternative assets with Greg Dowling on Manager Meetings.

0:00 / 0:27exact quote · 27.3s
720p mp4 · rendered on demand · StarZero watermark
“Today, the way that we structure is we will, the fund, our funds and our LPs will get a revenue share in that business. So we will get the return of the assets themselves. And then if the operating partner can build a big business around that, our LPs will benefit from that, having been the early capital that unlocked value and a track record for them to get upside through a revenue share or some other upside warrant or equity participation in that business.”

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 Chris Heller

Insight
Heller: Niche alternatives exploit the gap between perceived and actual risk
“And I think our original supposition and now bolstered by 10 years of being in this business is that that's not actually the case. Now, there are absolutely risky things in this niche space, and there are lots of things that you don't want to invest in, but wh…”
Chris Heller Dec 2, 2024 ▶ 10:26 Chris Heller - Ten Years of Weird Alternatives (EP.420)
Insight
Non-correlated cash flows suffer secondary correlation if reliant on PE exits
“And we might find the most non-correlated business and its cash flows are not correlated with general GDP cycles. But if we own that asset or that company and we want to exit it to another private equity firm or take it public, even though we might have a non-…”
Chris Heller Dec 2, 2024 ▶ 16:57 Chris Heller - Ten Years of Weird Alternatives (EP.420)
Insight
Intellectual thinkers who espouse compelling theses often cannot run operating businesses
“Sometimes these deep philosophical thinkers are not always the right people to run business. They can usually espouse a really interesting view, but they can't run businesses.”
Chris Heller Dec 2, 2024 ▶ 27:36 Chris Heller - Ten Years of Weird Alternatives (EP.420)
Insight
Heller: Luxury assets like art and wine are cyclical, not non-correlated
“Those investments for us are really tough because they are not non-correlated. They are tied to the economic cycle. Art, wine, diamonds become much more valuable as the economic cycle accelerates, and then as it turns, as so does the price of those things.”
Chris Heller Mar 24, 2022 ▶ 22:31 Chris Heller - Weird Alternatives at Cordillera Investment Partners (Manager Meetings, EP.28)
Insight
Heller: Alternatives' promise is early outsized returns and idiosyncratic diversification
“What was the original promise of alternatives? It's twofold. It is first, by being early to finding an asset or an idea or an investment, you can extract outsized returns before the world finds them. And secondly, finding assets that have non-correlated idiosy…”
Chris Heller Dec 2, 2024 ▶ 8:02 Chris Heller - Ten Years of Weird Alternatives (EP.420)
Opinion
Heller: Most PE firms lack time to source and structure niche assets
“I mean, we have to spend a lot of time to find these things. We have to spend a lot of time to structure these things. We have to spend a lot of time to understand these things. And I think it's something that a lot of other Private equity firms, asset manager…”
Chris Heller Dec 2, 2024 ▶ 9:17 Chris Heller - Ten Years of Weird Alternatives (EP.420)
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.