The Ledger
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why aren't all 12 resolved? a statement only gets an assessment when the public record can support or contradict it. opinions and what-ifs never can, and 0 checkable ones are still open, waiting for their date. predictions held up or didn't; assertions are supported or contradicted. on every card: ▮▮▮▮▮ certainty · ▮▮▮▮▮ debate potential. speakers are clickable
Beshore: Using zero debt in acquisitions generates higher long-term returns
“You create higher returns over time by using little to no debt as weird as that is in the finance world.”
Beshore: Debt is an amplifier of return, not a source of return
“Debt is not a source of return. It is an amplifier of return. So it makes good things Be great. It can take mediocre things and destroy them. And of course it takes bad things and nukes them.”
Beshore: Permanent Equity takes zero management fees or reimbursements
“We take no fees of any kind, no reimbursements of any kind. There's no cash that comes from either our LPs or the companies to us. Zero guaranteed revenue”
Beshore: Short-Term Capital and Time Horizons Prevent Sound Long-Term Decisions
“There's no way
To make good long-term decisions with short-term capital with short-term time horizons.
There's no way.”
Beshore: Permanent Equity prefers acquiring 51% to 70% of a business
“We don't want to buy a hundred percent of a company, right? Like if we have our choice, we're buying 51% to 70% of the business. And we want, we don't allow non strategic actors.”
Beshore: Traditional private equity beats Permanent Equity at executive accountability
“Since we're talking about comparing us to traditional private equity, I would say is one of the things that traditional private equity has gotten done better than us in some ways is, is held people accountable.”
Beshore: Permanent Equity underwrites acquisitions assuming zero growth
“Often assuming for most of the deals we do that there is no growth. So we want the business to underwrite with no change in trajectory.”
Beshore: Permanent Equity has never bought a business with debt on it
“We've never seen a business that we want to purchase ever in the history of the firm that has debt on it. Like when we buy it, that has debt on it.”
Beshore: Permanent Equity manages capital committed on 30-year time horizons
“Getting to serve the families and the institutions that give us capital, the trust with their capital for 30 years, the amount of trust that they have with us to give somebody capital for 30 years.”
Beshore: Permanent Equity has never sold an acquired portfolio company
“We've never sold anything. So, I mean, we still own everything. I shouldn't keep caveat in that. It's not like we've sold anything.”
Beshore: Permanent Equity targets $3M free cash flow for platform acquisitions
“Minimum sort of three, three million dollars of free cashflow, not a hard and fast rule. We've done some smaller deals, but on average for new platforms were, you know, three million.”
Beshore: Permanent Equity waited four years between its first and second acquisitions
“From the time we bought the first business to the time I bought the second business was four years of toiling away and correcting and learning and trying to get a good foundation of capital and into position to do the next deal.”