TDM Growth Partners targets 10 to 15x returns over 10-year holding periods
Hamish Corlett · Hamish Corlett – TDM Growth Partners (Manager Meetings, EP.15) · Oct 14, 2021 · at 11:29
Hamish Corlett, co-founder of TDM Growth Partners, explains the firm's investment underwriting criteria and long-term holding philosophy to Ethan Berman.
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“Each time we're deploying capital, we're thinking, well, at least this money is deployed for five years, but ideally we're trying to deploy money for 10 years in a business and make 10, 15 times our money.”
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More from Hamish Corlett
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“We're now at 1.5, and we think we can keep compounding at the same rate for another 10 years. And over that time, the 1.5 turns into fifteen billion and still be able to invest Exactly the same way we've been investing the past 16 years.”
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“Take a couple of the companies we own at the moment, a Spotify or a Square, which we think can continue to grow revenue at 20, 30% plus for the next 10 years.”
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“In the next gen business, we've got a company like Guzman and Gomez, which we think is the McDonald's of the next generation. It's a great Australian Mexican food retail business that we think can be a fifty billion dollar business down the track.”
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“We think around 10 people is probably the maximum number we can have to effectively execute that decision-making capability.”
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“You can't produce great returns for a long period of time by making easy consensus decisions, and so that usually means one or two things, that when we're making an investment decision in the business, there's usually something in the business that other inves…”