Gritty Maverick Built DLJ Into Wall Street Powerhouse
“I have to be busy, and I just love building things that make a difference.” In a 1986 Wall Street Journal article, Tony James was described as an up-and-coming M&A whiz kid. He transformed DLJ from a mid-sized brokerage into one of Wall Street’s most important firms by building its leveraged buyout and private capital operations, which later became the blueprint, and really the model, for much of the industry. The grit and willingness to endure more pain than just about anyone else. “When playing tackle football, I would hit as hard as I possibly could. I would barely be able to get up… But the big guy I hit, he didn’t want to get hit again. It didn’t hurt him as much as it hurt me... I always felt like I had the ability to really just grind it out.” His story of choosing DLJ over Morgan Stanley and Goldman Sachs after graduating from college… “I was never someone that had a great respect for authority...” “I kind of liked doing my own thing…” This decision proved right as they scaled the firm to the point where they sold DLJ for $12 billion, all cash. He later joined Blackstone, growing its assets from $20 billion to a trillion. A run nobody expected. What a job Declan Kelly did putting together such a vibrant conversation with Tony James. Walking around Central Park and recording some parts of it while sitting at James’ NYC home. Do yourself a favor and give it a listen.
True Success Demands Genuine Passion, Not Fake Curiosity
You can’t fake curiosity and passion. Whether it’s building a portfolio of traditional businesses that generate cash flow... Or raising capital in venture, or running a B2B software company... You’re competing with people who live and breathe their craft, and if you don’t,...
Serial Home‑Service Founder Turns Pool Industry Into Scalable Brand
Here is @jeremyyamaguchi explaining his thesis on why he decided to acquire pool services businesses. So far, he has acquired 10 companies in a short 18 months. Jeremy has previously built, scaled, and exited three home services businesses: 1. Golden Shine (housekeeping)...
US HoldCos Leverage Aggressive Data Capture for Faster Value
Building a HoldCo in the US versus Europe Here is one specific example that shows how different it can be: I spoke with a European investor, entrepreneur, and now HoldCo builder who has experience operating in both markets. He said something that...
Build Trust Networks For
Why networks are one of the most underrated advantages in the lower middle market, and how to build them. We explore how trust, introductions, persistence, and long-term generosity can create better deal flow, stronger relationships, and a real competitive edge for...
True Learning Shows Up in Changed Behavior
Learning is a behavioral change. “If your behavior hasn’t changed, you haven’t learned.” – @alixpasquet
Ownership Shifts Analysis: Live With Your Decisions
A few days in New York City and an important message from a former partner at a lower middle market private eqity firm. Today, he runs his own firm. He has bought 8 companies, all legacy buyouts, with companies that have been...
Call Founders Directly to Master Niche Industries Quickly
I still think one of the best ways to understand traditional niche businesses and industries is by picking up the phone book and calling founders. With every founder you meet and every company you visit, you can soak in so much...
From Struggling Buyout to Global Fund Builder
My conversation with @PRamanathan on how he helped lead a management buyout of a struggling cathodic protection business in 2003 and turned it into Corrosion Technology Services. Himself local to Dubai, Ram's company, CTS, includes 10 companies operating across 8 countries...
Buyout Strategies Look Same; People Make the Difference
When talking to a lot of lower middle market firms, the buyout strategy is almost always the same. There is not a lot of differentiation. They are all kind of doing the same thing. What is different are the people and personalities...
Buffett Chooses Companies Based on Durability, Not Sales
. @vickeller on Warren Buffett and Berkshire Hathaway acquiring three of his companies, and what he looked at in his companies: "Mr. Buffett acquired businesses that I was fortunate enough to be part of founding. I don't think anybody sells a...
Hire for Strengths, Not Flaws, Says Andreessen Horowitz
When it comes to work and business, more people should rely on their strengths, or, to put it more directly, go all in on them and worry less about their flaws. It’s not a hobby, a game of tennis, or a...
Intense Team Collaboration Fuels Deal Sourcing
A month ago, I asked a GP of a $180mm AUM fund who has done 16 acquisitions how they find attractive $1-5mm EBITDA cash-flow businesses: "I truly believe our secret sauce is sourcing. If you asked us to pinpoint the one...
Hold Longer, Compound Returns to 25x Instead of 5x
Nothing particularly new here in the capital allocation framework or the underlying idea of holding great assets for longer. It is more of a reminder… But as one speaker at the conference said: if you do excellent work, generate a 5x MOIC,...
31‑Minute Episode Sets Record: 3,300 Downloads, 80% Completion
My editor messaged me that this short 31-minute episode has a total of 3,300 downloads and an average consumption of 80%, which is the highest we've seen after posting over 165 episodes.
