In June 2020, Landmark Partners and New Mexico PERA published a paper outlining a new methodology for calculating private equity performance in dollars, called the Excess Value Method.
In this discussion, co-author Avi Turetsky, talks about how the method was conceived, how it works, can be applied, and the outlook for its adoption as a measurement and incentive payment tool for the global private equity industry.
Wol Kolade is managing partner of Livingbridge, an international mid-market firm, headquartered in the UK and with offices in Melbourne and Boston. Wol joined the firm’s predecessor in 1993 and he led the buyout of the firm in 2005. We spoke on July 20th 2020.
On Covid-19 impact:
“We’ve never seen anything like this. It’s an enforced shutdown of circa a third of the economy with no real plan and little or no notice… [but] our portfolio looks ok.”
“It’s no use wishing for what was. You just need to adjust.”
“There’s no prize for not taking government support.”
“The whole way we look at health and health security has changed. You need to play into that area and understand, in five years time, what might happen. The whole emphasis of healthcare has been on treatment.”
On opportunity:
“The joy of being in the entrepreneur-driven market is that things are always reshaping and reforming.”
“We’re changing what we do, how we consume, how we deliver services, it’s super super exciting.”
“On the US Eastern seaboard, there are 50,000 private companies that make profits of $1m-10m. There is so much to do.”
Mark Tluszcz is co-founder and CEO of Mangrove Capital Partners. Mark is one of Europe’s leading venture capitalists. He was the first investor in Skype and is currently chairman of Nasdaq-listed Wix, which is trading on Nasdaq at $11bn, and I recommend his blogsite, dare to dream beyond.
Audio-Only Podcast here.
And iTunes.
Ross’s favourite bits:
“Do it in Europe, stay home and believe in yourself.”
On Skype: “The only criticism I have of myself … is that maybe we should have been more generous in parsing the options. We’ve changed that now. At Wix we have 250 dollar millionaires [or one out of eight employees]”.
On Covid-19: “Our number one message: make sure you have enough capital on your balance sheet, however you get there… enough cash until December 2021.”
“It takes 5-10 years to build companies, so what is three months in a 5 to 10 year journey. We will look back and say this was a blip in the life of a successful fund.”
On healthcare: “We think we can automate what a general practitioner does.”
“Flo is a great example. I don’t think any doctor above 40 would have thought it was a good idea.”
On dinosaurs: “The keyboard is gone in 5 to 10 years.”
“We think there is going to be, somewhere in the world, a Netflix for voice.”
On investing: “Anyone you finance now will remember you forever.”
ESG – Environmental, social, governance… ‘issues’ is an industry in its own right, claiming $30trn in aum.
But how logical is its conceptual underpinnings? Does it reinforce moral behaviour or preclude it?
This conversation with leading private markets adviser and social responsibility author Cyril Demaria offers a deep and first principles analysis of how ESG plays into the many complexities and ethical decisions faced by investors and fund managers.
Podcast / audio-only version here.
Or subscribe via iTunes.
I caught up with Andrew Rearick of Debevoise & Plimpton on 26 March 2020 to talk about how the private equity secondaries market is reacting to the coronavirus.
In late February Before-Corona, I met with Anne Glover, CEO of Amadeus Capital Partners, for her take on the environment for venture capital investment; Amadeus’s long-standing commitment to deep tech, how to seed talent and ideas, the trade-offs of VC fund structures and exit opportunities for European portfolio companies.
Audio-only podcast here.
Or listen on iTunes.
