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Apis Partners, Fund Shack

Agentic AI, Minority Report and the Future of Financial Services | Apis Partners | Ep 78

Ross Butler speaks with Matteo Stefanel and Udayan Goyal, Co-Founders and Managing Partners of Apis Partners, one of the world’s best performing growth-capital firms.

How did two former investment bankers build a globally recognised growth platform, and what does their story reveal about where finance is heading?

Building a Firm Before the Market Was Ready

Drawing on two decades in M&A at DLJ and Deutsche Bank, Matteo and Udayan applied deal-making precision to private-equity investing: identify the future buyer first, then build the company to fit that strategic template.

“We call the likely acquirers before we buy—then we build to their menu.”

The Network as an Edge

Having taken firms like Visa, Mastercard, and First Data public, the Apis founders knew the global payments ecosystem inside out. Many of their mid-level contacts from those deals now lead the organisations that acquire Apis portfolio companies. That continuity of relationships—spanning two decades—has been central to their consistent exit performance.

Fintech’s Next Frontier

For Apis, the most disruptive phase of financial services is happening now. Stablecoins already move more volume than Visa and Mastercard combined, and corporate treasuries are beginning to adopt them for 24-hour liquidity management. Micropayments, decentralised finance, and agentic AI are together redrawing the boundaries between credit, payments, and savings.

Embedded Finance and Subscription-Everything

From iPhones to cars, ownership is giving way to access. Apple’s device-as-a-service model and Jaguar Land Rover’s mobility subscriptions illustrate how financial products are becoming invisible—embedded in experiences rather than sold separately. In this world, the profit pool shifts to those who own the customer relationship, not the balance sheet.

Democratising Wealth

Apis sees the same technological forces opening private-market access to ordinary savers. Platforms such as Moneybox show how digital distribution and AI-driven personalisation can make investing in private assets feasible at scale. The challenge, they note, is balancing precision with fairness—ensuring that hyper-personalised finance doesn’t exclude the less advantaged.

Finance at the Centre of Societal Change

From universal basic income to machine-to-machine banking, Matteo and Udayan argue that finance sits at the core of every major social and technological transformation. Far from being a “boring” sector, it is the mechanism through which the future economy will be built.

Thank you to our episode partner 

Brookfield Private Equity: Global leader in acquiring and driving operational transformation in industrials and essential business services.

For more information, visit: www.brookfield.com/about-us/capabilities/private-equity

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If this episode resonated, share it with a colleague who cares about value-creation over slogans.

Ross Butler Founder and Host Fund Shack

🌐 CONNECT on Linkedin www.linkedin.com/in/rossbutler1/

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About Fund Shack:
Fund Shack is a private equity podcast and global media channel for alternative investment professionals. Fund Shack is produced by Linear B Group.

Contact:
Katie Mitchell
Email: katie@linearb.media
Company: Linear B Group

Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

Adrian Letts, Brookfield Private Equity Group

Inside Brookfield’s operating engine | Adrian Letts | Ep 77

Ross Butler speaks with Adrian Letts, Managing Partner in Brookfield’s Private Equity Group and Head of Business Operations. Adrian brings a deep operator’s lens – from founding one of the UK’s first streaming platforms, to leading Tesco’s digital and global e-commerce, to scaling a UK retail-energy company from 500k to 5 million customers through M&A and transformation.

We explore how Brookfield’s “roll-up-your-sleeves” model aligns investors and operators from diligence to exit, and why organisation design, not checklists, is often the decisive value lever.

Alignment from day one: one team, one carry

Brookfield embeds operating leaders alongside investors with identical compensation structures, including carry. Operators sit in origination, diligence, capital reviews, value-creation planning, and exit. The result: no “second-class citizen” dynamic – just a single team accountable for outcomes.

Organisation before levers

Adrian’s first question is organisational: do we have the right people, accountabilities, spans and layers, cadence, and scorecards? With that foundation in place, Brookfield prioritises the three to five highest-return initiatives—rather than twenty half-started projects—so change sticks inside the company.

A small, senior, generalist ops bench

Brookfield’s core team is lean and high-impact—executive-chair types and transformation leaders who stay with a company from diligence through exit. Deep specialist work (e.g., pricing) is brought in from best-in-class partners when needed, keeping innovation high and avoiding a cookie-cutter playbook.

Digitisation & AI: accelerants to existing levers

AI isn’t a magic new lever—it speeds up pricing, procurement, working-capital, and commercial-ops work with greater certainty. A practical example from the portfolio: AI-driven demand and inventory models that correlate seasonality, weather, and vehicle mix to optimise production and free up working capital.

Pace with stability

Transformation moves at the speed the organisation can absorb. Brookfield maps current processes, designs the target model, and sequences change so performance improves without destabilising day-to-day operations—capability that endures after the consultants go home.

Listen & follow: Apple Podcasts, Spotify, YouTube, Substack and Linkedin

If this episode resonated, share it with a colleague who cares about value-creation over slogans.

Ross Butler Founder and Host Fund Shack

🌐 www.fund-shack.com CONNECT on Linkedin www.linkedin.com/in/rossbutler1/

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Contact Information:

About Fund Shack:
Fund Shack is a private equity podcast and global media channel for alternative investment professionals. Fund Shack is produced by Linear B Group.

Contact:
Katie Mitchell
Email: katie@linearb.media
Company: Linear B Group

Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

William Benjamin, HSBC Asset Management

Talking Alternatives, with HSBC | William Benjamin | Ep 76

In this episode of Fund Shack, Ross Butler speaks with William Benjamin, Head of Alternative Solutions at HSBC Asset Management, about the evolution of private markets, evergreen fund structures, and the democratization of alternatives.

William has held senior roles across HSBC’s alternatives platform — including CIO, CEO, and Head of Hedge Funds — as well as time at Goldman Sachs. With HSBC Alternatives now managing around $75 billion, he reflects on how private markets have shifted from niche strategies into a mainstream, essential part of diversified portfolios.

From private equity and credit to infrastructure and venture capital, Benjamin explains how HSBC leverages its global footprint to access opportunities across the spectrum. He argues that investors haven’t “missed the boat” on alternatives: with listed markets shrinking and private companies multiplying, alternatives remain a growing engine of value creation.

The conversation explores how HSBC partners with managers, balances mega-buyouts with mid-market opportunities, and applies strict allocation and risk management disciplines across client portfolios. Benjamin also shares views on evergreen fund design, the operational demands of democratizing access, and the cultural and career dynamics shaping talent in private markets.

Looking ahead, he anticipates continued, steady growth in alternatives, with private credit, infrastructure, and venture capital all playing expanding roles in the global investment universe.

This is a deep dive into how one of the world’s largest financial groups is positioning itself in alternatives, and why Benjamin believes the next phase of growth will be defined not just by institutions, but also by the rising participation of high-net-worth investors.

Ross Butler Founder and Host Fund Shack

🌐 www.fund-shack.com CONNECT on Linkedin www.linkedin.com/in/rossbutler1/

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Contact Information:

About Fund Shack:
Fund Shack is a private equity podcast and global media channel for alternative investment professionals. Fund Shack is produced by Linear B Group.

Contact:
Katie Mitchell
Email: katie@linearb.media
Company: Linear B Group

Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

Alex van Someren on Fund Shack

Venture Capital, Defence, National Security, and the Future of Technology | Alex van Someren | Ep 75

Alex van Someren has lived at the frontier of technology entrepreneurship, venture capital, and national security. As a teenager he joined Acorn Computers, the company that seeded ARM Holdings and the UK’s early computing revolution. He co-founded nCipher, a London-listed cryptography firm, later became a partner at Amadeus Capital Partners, and between 2021 and 2024 served as the UK’s Chief Scientific Adviser for National Security. In this Fund Shack conversation, Alex shares deep insights into:

🔹The UK’s National Security Strategic Investment Fund (NSIF) and its parallels with DARPA and US defence-linked venture capital.

🔹The cultural clash between government risk aversion and venture capital risk-taking.

🔹The future of dual-use technologies across AI, quantum computing, semiconductors, and space. 🔹The ESG debate around nuclear energy and small modular reactors.

🔹Why, despite all the hype, venture capital is still one of the hardest ways to make money. Alex’s perspective, as founder, investor, and government adviser, is a rare window into how capital, technology, and security policy interact in today’s geopolitical and financial environment.

Thank you to our episode partner Brookfield Private Equity: Global leader in acquiring and driving operational transformation in industrials and essential business services.

For more information, visit: www.brookfield.com/about-us/capabilities/private-equity

💼 Learn more at: Paladin Capital Group

🌐 www.paladincapgroup.com Alex van Someren www.paladincapgroup.com/people/alex-van-someren/

Ross Butler Founder and Host Fund Shack

🌐 www.fund-shack.com CONNECT on Linkedin www.linkedin.com/in/rossbutler1/

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Subscribe now to unlock expert interviews!

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Contact Information:

About Fund Shack:
Fund Shack is a private equity podcast and global media channel for alternative investment professionals. Fund Shack is produced by Linear B Group.

Contact:
Katie Mitchell
Email: katie@linearb.media
Company: Linear B Group

Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

Emerging managers with Kim Pochon and Joe Briggs

Emerging managers: what it takes | Kim Pochon, Unigestion & Joe Briggs, BCF | Ep 74

Ross Butler speaks with Kim Pochon, Global Head of Primary Investments at Unigestion, and Joe Briggs, Founder of BCF for this launch episode of Fund Shack’s Emerging Manager Series.

What drives experienced professionals to leave established firms and launch new platforms? How do LPs assess the viability of emerging teams? And why the earliest decisions—on team structure, alignment, and strategy—can determine long-term success or failure.

Why “Emerging Manager” Is a Misnomer
Most “emerging managers” are highly experienced professionals. They are not new to investing, but new to firm-building. And while the term may not resonate with GPs themselves, it has real weight in the LP ecosystem, where it defines eligibility for dedicated programs and mandates.

Why LPs Value Early Access
Backing a first-time fund is not just about returns; it’s about relevance and franchise value. Early LPs often benefit from enhanced access, strong alignment, and deep relationships that persist long after the first fund closes. In many cases, Unigestion now co-invests or partners with these managers on continuation vehicles and secondaries—a long-term payoff for early conviction.

The Rise of Independent Sponsors and Hybrid Models
The deal-by-deal model—often called independent sponsorship—has flourished as a path to proof for aspiring GPs. Especially in Europe, emerging teams start with individual transactions, then evolve into structured vehicles. Joe Briggs highlights the growing hybrid space: mini-funds and “short-duration funds” that offer speed, alignment, and stepwise scalability before raising an institutional flagship.

Team Dynamics: The Make-or-Break Factor
The biggest risk in early-stage private equity isn’t deal flow—it’s the people. Joe and Kim stress that LPs are not just investing in a strategy, but a partnership. Decision-making processes, equity splits, and even how teams handle setbacks are all scrutinised.

Culture, Conviction, and the Push to Spin Out
So why do seasoned professionals walk away from high-paying roles? You’ll have to watch to find out…

Know Your Why
The most compelling emerging managers are those who can clearly articulate the value they bring—not just for themselves, but for LPs. As Briggs puts it, emerging GPs must “know why they deserve to exist.” That clarity, combined with operational discipline, is what separates scalable franchises from short-lived experiments.

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Contact Information:

About Fund Shack:
Fund Shack is a private equity podcast and global media channel for alternative investment professionals. Fund Shack is produced by Linear B Group.

Contact:
Katie Mitchell
Email: katie@linearb.media
Company: Linear B Group

Hashtags: #PrivateMarkets #PrivateEquity #PrivateCredit #Emergingmanagers

Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

How Goldman channels private markets to wealth | Kyle D Kniffen | Ep 73

In this Fund Shack episode, recorded at SuperReturn in Berlin, Ross Butler talks with Kyle D. Kniffen, Managing Director and Global Head of Alternatives for Third Party Wealth at Goldman Sachs Asset Management.

With over $500 billion in alternative assets under management and nearly four decades of experience, Kyle discusses the firm’s expansive platform, which spans direct investing and open-architecture manager selection across private equity, private credit, infrastructure, hedge funds, and more. This dual capability allows Goldman Sachs to provide flexible, multi-asset solutions tailored to wealth intermediaries seeking access to institutional-grade strategies.

Private Markets Are Now Mainstream – Even for Wealth

Kyle outlines the structural changes that have brought private markets to the centre of modern portfolio construction. The number of public companies has declined sharply, while private companies are staying private longer. Innovation in sectors like healthcare and AI increasingly happens outside public markets, making private equity and private credit essential exposures.

Goldman Sachs is responding to this shift with innovative fund structures that reduce complexity and broaden access.

Why Wealth Clients Are Underallocated – And How That Changes

Kyle estimates that global individual investors hold just 5% of their portfolios in alternatives, versus 20-30% for institutions. The education gap is significant, and Goldman Sachs is investing heavily in curriculum-like frameworks to support wealth managers and their clients through this transition.

Evergreen Alternatives: A New Era of Product Design

Kyle explores the trade-offs between traditional drawdown vehicles and new evergreen formats. While evergreen funds offer reduced complexity and optional liquidity, they introduce duration management challenges. Goldman mitigates this by integrating secondary strategies and maintaining a high bar for product design.

The discussion also highlights how private credit’s liquidity characteristics make it especially well-suited to evergreen formats. However, Goldman applies the same innovation to private equity, infrastructure, and real assets, combining directs and secondaries to reduce duration risk while preserving exposure.

Risk, Returns, and Manager Alignment

Risk management remains a priority, with diversification across and within asset classes. Kyle stresses alignment: Goldman Sachs’ own balance sheet and employee capital are significantly invested alongside clients. The firm takes transparency and reporting seriously, delivering post-sale support that includes events, frequent updates, and tailored communications.

Private Wealth Is Still Early in the Journey

According to Kyle, private wealth is at the earliest stage of its alternatives adoption curve. That presents an enormous opportunity for managers who can deliver not just investment performance, but a high standard of care, education, and partnership. As alternative investments become more foundational to long-term portfolio outcomes, Goldman Sachs is positioning itself as a trusted guide through the complexity.

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Thank you to our episode partner, Edelman Smithfield, a specialist Public Relations and Communications consultancy for the financial markets. Their deep expertise in Private Capital spans fundraising, portfolio company communications, strategic positioning, and reputation management. 

Learn more at www.edelmansmithfield.com

——————————————————————— 

Subscribe now to unlock expert interviews!

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Contact Information:

About Fund Shack:
Fund Shack is a private equity podcast and global media channel for alternative investment professionals. Fund Shack is produced by Linear B Group.

Contact:
Katie Mitchell
Email: katie@linearb.media
Company: Linear B Group

Hashtags: #PrivateMarkets #PrivateEquity #PrivateCredit #EvergreenFunds #WealthManagement #GoldmanSachs #AlternativeInvestments #PortfolioConstruction #FundShackPodcast #SuperReturn #Secondaries #InvestorEducation

Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

Matt Hougan, Bitwise, Fund Shack podcast

Bitcoin: The Alternative You Can No Longer Ignore | Matthew Hogan, Bitwise | Ep 72

In this episode of Fund Shack, Ross Butler speaks with Matthew Hougan, Chief Investment Officer at Bitwise Asset Management, the firm that launched the first crypto index fund and now oversees over $10 billion in assets. Previously CEO of ETF.com and chairman of Inside ETFs, Matthew has been at the vanguard of two financial revolutions: exchange-traded funds and now crypto investing.

They explore why Bitcoin is no longer an asset institutional investors can afford to ignore, why it fits comfortably into modern portfolios, and how it is evolving into a global macro asset, one that could redefine value, collateral, and even the foundations of finance itself.

From Retail Phenomenon to Institutional Essential

Bitcoin has long been dismissed as a retail-driven speculation. But institutional adoption is accelerating fast. Since 2023, US Bitcoin ETFs have amassed over $37 billion in assets, eclipsing every ETF launch in history. A third of that capital is institutional, and Bitwise alone has seen its AUM tenfold in just 18 months.

Institutions are realising that Bitcoin, when stripped of its reputation, offers a compelling asset profile: high historical returns, low correlation with stocks and bonds, deep liquidity, and rising relevance in macro portfolios.

Rethinking Bitcoin’s Role in the Portfolio

Many asset allocators are re-examining where Bitcoin fits. Some bucket it within high-beta equities or emerging tech. Increasingly, though, it’s being treated as an alternative asset due to its unique risk-return characteristics and lack of correlation.

Institutions are beginning to see that a 1–2% Bitcoin allocation can materially improve a portfolio’s Sharpe ratio. For the first time, regulatory clarity and ETF wrappers allow them to express that view efficiently, with custody, liquidity and compliance challenges largely solved.

Bitcoin as Digital Gold… and More

Bitcoin is optimised not for speed or smart contracts, but for decentralised value storage. Its clearest comparable is gold, yet it improves on it by being portable, programmable, and verifiable in real time. Today, Bitcoin’s market cap is under $2 trillion; gold’s is over $21 trillion. That gap represents upside for investors who believe in the digital gold thesis.

But Bitcoin isn’t just a store of value. It’s a non-political currency in a fragmenting world. As global trade moves away from sole reliance on the US dollar, Bitcoin could become a neutral bridge currency, used by countries that want a settlement mechanism free from geopolitical alignment.

A Macro Asset in the Making

Macro hedge funds increasingly use Bitcoin for after-hours positioning, risk-on trades, and global hedging. It trades 24/7, settles instantly, and provides pristine collateral, all features traditional finance struggles to match.

Bitwise’s own ETFs give institutions this exposure in a low-cost, fully regulated wrapper, with Coinbase custody, cold storage, and full on-chain visibility.

Looking Ahead: Finance on the Blockchain

Bitcoin’s potential doesn’t stop with passive holding. The crypto ecosystem is already redefining capital markets. On-chain lending, instant collateralised loans, and programmable money are standard in decentralised finance. For traditional dealmakers and credit investors, this foreshadows faster, more transparent, and radically more efficient transaction rails.

Hougan believes traditional finance is slowly merging with this future. Complexity is not a flaw but a sign of technological evolution. In time, Bitcoin’s programmability and security could replace many financial intermediaries, not just as an asset, but as a layer of infrastructure.

Advice for Professionals and Allocators

For financial professionals, Matthew’s message is simple: start experimenting. Buy Bitcoin. Try DeFi. Use it as tuition for a new era of finance. He draws a parallel to the ETF boom, those who got in early didn’t just profit; they rewrote the rules.

Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

Cyril Demaria, Fund Shack, private wealth

The complexities of introducing private markets to HNWs | Cyril Demaria | Ep 71

In this episode of Fund Shack, Ross Butler is joined by Cyril Demaria-Bengochea, Head of Private Market Strategy at Julius Baer, Associate Professor at EDHEC Business School, and author of multiple leading books on private equity. Cyril has worked as an expert for Invest Europe, ILPA, and the European Commission, and he brings a unique perspective that combines academic rigour with practical industry insight.

Together, they explore the ongoing transformation of private markets, focusing in particular on the challenges, and limitations, of accessing capital from private wealth clients.

A shift from institutions to individuals

Institutional capital has long been the cornerstone of private markets, but fund managers are increasingly turning their attention to the private wealth segment. However, as Cyril points out, this market is fundamentally more complex. Individual investors are highly heterogeneous, each with unique goals, constraints, and levels of financial sophistication.

The Challenge of Democratisation

Much has been made of the “democratisation” of private equity, but Cyril believes the term may be misleading. True access remains limited, especially when trying to balance diversification, cost-efficiency, and liquidity. Although evergreen structures have been hailed as a solution, Cyril estimates they still represent just 1–2% of total assets under management in private markets—highlighting how early-stage the trend really is.

Private Markets: A Three-Dimensional Investment

One of the major hurdles for private wealth clients is understanding the time dimension of private markets. Unlike traditional public investments, private equity involves long holding periods, delayed distributions, and a lack of liquidity. Cyril argues that much of the complexity in private markets stems from this third dimension—and that many investors (and advisers) still struggle to properly account for it in portfolio construction.

Fund Structures: No One-Size-Fits-All

While closed-end funds remain the dominant structure for good reason—offering embedded discipline and clear payout timelines—other structures are growing in relevance. Cyril sees increasing use of evergreen and semi-liquid structures, particularly for clients seeking operational simplicity.

Rather than any one structure “winning,” he envisions a world where different vehicles coexist and serve different needs. The key is understanding the investor’s objectives and building a tailored toolbox that balances access, complexity, and outcome alignment.

Podcast Sponsor:
This episode was designed and produced by Linear B Group, a leading content marketing agency focused on financial and professional services.

Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

Donald Chew

American corporate finance & the wealth of nations | Donald H. Chew, Jr | Ep 70

Donald H. Chew, Jr. has been the editor of the Journal of Applied Corporate Finance for 45 years. In this episode, Donald gives his big picture take on the central role of American-style corporate finance in driving wealth and prosperity. 

We discuss:

  • What is the right metric for assessing long-term company value creation?
  • How activist investors helped fix America’s broken corporate governance model of the 1970s to usher in 40+ years of growth. 
  • Why the Chinese economy is not on the same trajectory. 
  • Why the Japanese economy has suffered a 30 year downturn (yes it’s a corporate governance problem).
  • How the same thing could happen in Europe.
  • The link between failure of the 1970s conglomerates, the GFC, Japan’s economic catastrophe and modern ESG.

Drawing on Donald’s recent book, The Making of Modern Corporate Finance: A History of the Ideas and How They Helped Build the Wealth of Nations, this is the story of how activist investors helped (to coin a phrase) Make American Corporate Finance Great Again. 

Insights  

The Shareholder Revolution and the 1980s Breakup of Conglomerates
Corporate America faced stagnation in the 1970s, with bloated conglomerates prioritizing stability and full employment over efficiency and investor returns. The 1980s saw a reassertion of investor control, breaking up these conglomerates and restoring focus on shareholder value. The transformation led to a surge in U.S. productivity and economic expansion, contrasting with Japan’s stagnation under its model of corporate governance that prioritized employment over efficiency.

Japan’s Corporate Governance Failure
Japan’s economy has been in stagnation for 30 years, a result of corporate structures that resist shareholder influence, limit workforce reductions, and prioritize stability over profit maximization. The failure to optimize capital allocation has led to declining productivity and even population shrinkage. Today, Japan’s business leaders are beginning to recognize the value of shareholder activism as a tool for economic revival.

China’s Middle-Income Trap and Financial Market Manipulation
Donald argues that China’s financial system is a “caricature of American capitalism.” While massive infrastructure and construction projects give the illusion of economic success, state-controlled companies fail to generate long-term value. IPOs are manipulated, capital is trapped within inefficient state-owned banks, and foreign investment remains limited due to a lack of investor protections. The absence of effective corporate governance is stalling China’s economic transition.

Private Equity and the Active Investor Model
Private equity and activist investors have played a pivotal role in improving corporate governance worldwide. By taking control of underperforming companies and refocusing on efficiency and profitability, private equity has demonstrated its ability to drive superior returns and economic growth. While often criticized, Donald argues that private equity’s approach to financial discipline is essential for long-term corporate health.

The Global Financial Crisis: A Failure of Political Incentives
Rather than being a failure of capitalism, the global financial crisis was driven by political incentives that encouraged subprime lending and artificially expanded home ownership. Government-backed entities like Fannie Mae and Freddie Mac distorted the housing market, leading to unsustainable risk-taking. European banks, seduced by artificially high-rated mortgage-backed securities, compounded the problem. The crisis, Donald suggests, highlights the dangers of political interference in free markets.

The Future of Corporate Finance and National Prosperity
Donald’s book argues that corporate finance is the foundation of national economic prosperity. The U.S. stock market serves as a forward-looking indicator of productivity, outperforming global peers due to a more dynamic and investor-driven corporate culture. While GDP remains a lagging and often misleading economic metric, corporate financial performance provides a more accurate picture of wealth creation.

Has ESG Diluted the Profit Motive?
Donald examines whether ESG (Environmental, Social, and Governance) initiatives align with shareholder value or create a new set of vanity metrics that can distort corporate priorities. He contrasts Milton Friedman’s shareholder primacy with Michael Jensen’s concept of enlightened shareholder value maximization, arguing that corporate social responsibility must be balanced against long-term profitability to avoid the pitfalls of politically driven economic policies.

Final Thoughts: America’s Economic Resilience
Despite concerns over political instability, Donald remains optimistic about the resilience of American corporate finance. Unlike the centralized economic models of Japan and China, U.S. corporations are structured to adapt and thrive. The ability of businesses to restructure, cut costs, and refocus on shareholder value will continue to drive American prosperity, even in turbulent political times.

Podcast Sponsor:
This episode was designed and produced by Linear B Group, a leading content marketing agency focused on financial and professional services.

Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

Raja Hadji-Touma, Corsair Capital, Fund Shack podcast

Transformative financial services investment | Raja Hadji-Touma, Corsair | Ep 69

Raja Hadji-Touma, Partner at Corsair Capital and Head of European Buyouts, discusses Corsair’s focus on asset-light businesses in financial services, technology, and business services. He explains Corsair’s thematic approach to identifying trends and opportunities, emphasizing hands-on value creation, digitization, and scaling businesses through operational and strategic improvements.

Insights and Highlights

Specialization and Evolution Corsair Capital, originally part of JP Morgan, began as a solution to recapitalize troubled financial institutions after the U.S. Savings and Loan crisis. Over time, the firm shifted focus from capital-intensive businesses to asset-light services and technology within the financial services ecosystem. This evolution allows Corsair to focus on operational efficiency and scalable growth, targeting sectors like insurance distribution, fund administration, and B2B payments.

Value Creation and Hands-On Approach Corsair prioritizes active value creation by establishing clear 100-day and long-term strategic plans with management teams. Their approach involves operational improvements, talent development, and technology enhancements. With a focus on institutionalizing businesses, Corsair utilizes operating partners to assess organizational needs, streamline go-to-market strategies, and execute M&A strategies for growth.

Market Trends and Opportunities The firm targets fragmented markets, especially within insurance distribution and B2B payments, leveraging consolidation opportunities to scale businesses. Raja highlights the impact of AI and automation as key trends driving efficiency and new investment avenues. Corsair also sees regulatory requirements as growth catalysts, creating demand for compliance-related services and technologies.

Sector Focus: Building Platforms in Niche Markets Corsair focuses on mid-sized businesses with EBITDA between $5-20 million, scaling them to $50-70 million through buy-and-build strategies. The firm emphasizes recurring revenue models, high cash flow conversion, and resilience against economic cycles. Their thematic approach allows them to identify promising sectors and proactively source deals, often in bilateral settings.

Outlook and Strategic Growth Despite slower deal flow in 2024, Corsair remains optimistic about the next six to nine months as private equity adjusts to market conditions. With strong sector tailwinds, such as digital transformation and regulatory compliance, Corsair continues to back businesses positioned for long-term value creation and consolidation opportunities.

Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

katie@linearb.com