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Julian C. Salisbury

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2023-05-05
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2023-05-05
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  1. “Look, every client is different, they have a different liability structure, different investment goals, different investment risk tolerances, and we have different teams. We have an institutional client team, we have private wealth advisors that cover our own clients directly, and then we have a series of people that cover the distribution partners. So it's pretty bespoke and tailored to their individual needs. And yes, some demand and expect a higher level of customization and a higher level of service if somebody's giving us billions of dollars, then they expect a very high level of customization. At the simpler end, it can be a relatively plain vanilla product. But I would say even our private wealth, smaller private wealth clients are increasingly looking for broader set of advice and customization in terms of how we design their portfolio, which could be implementing value.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  2. “Yes, and really, even within that, the full range. So everything from money market funds, core fixed income, high yield, fundamental equity, quant equity, and then the full range of alternatives, both direct and indirect. We have a business where we invest in other people's private equity funds, private credit funds, and then we have a series of direct investment strategies, private equity, growth equity, credit, real estate infrastructure, sustainability, life sciences. So what we find, and then of course we have a multi-asset solutions business where we talk to clients about the entirety of their portfolio, their strategic asset allocation models. So what we find is with our clients increasingly, they don't want to just be pitched on a product or pitched on a single idea. It's like, what do I do? How do I address my needs? What are my liability structures? How do I make long-term investment decisions? And then how do I...”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  3. “Sure. Well, at the simplest level, we manage money for our clients, about 2.7 trillion dollars of assets today, three main client segments, institutional clients, our own private wealth clients, and then third-party wealth clients where we manage money on behalf of other wealth managers, distribution partners. So those are the three main segments within institutional. We manage money on behalf of pensions, endowments, insurance companies, sovereign wealth funds. So that's essentially what we do from a client segmentation perspective. And we do that globally, US, Europe, and Asia. In terms of the investing side of the business, we really are somewhat unique in that we cover the full range of products from the both.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  4. “Yeah. Now, what I decided is do what's right for the business and what was best for the business at the time was to be in New York, where it's a New York headquartered firm. It's a U.S.-centric firm. I think that's fairly well understood. And at the time, we were going through a lot of regulatory change, capital rules were changing, risk appetite was changing, and being at headquarters where you could stay close to the people, whether it's head of compliance, head of legal, head of risk. Whoever was running the business needed to be close to those decision makers in order to shepherd the business through that post-financial crisis period where there was a lot of, you know, the Volcker rule brought into focus, you know, could we do these businesses? Could you run private equity business? Could you run distressed credit businesses? So we really had to work through that over a number of years. And that's what really brought me to the US. And I wasn't a huge fan of New York before I moved in.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  5. “So I led the European special situations group from 08 to 2013. And then at that time, I was asked to run the global business, and it seemed pretty natural to move to the US at that time. There are a couple of reasons for that. One, the London market is where I spent most of my career. I knew the market, but I also knew the people there. I was very well calibrated, I had a very strong and trusted team, the vast majority of which are still with the business today. So I felt like that was the last place I needed to be. So then it was a question of Asia or the US. If I'd moved to Hong Kong, I think it would have looked like a fairly self-serving tax trade. If I had done that, it would have been because I thought that was one of the more interesting markets at the time where there was real alpha generating capability.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  6. “And the reason I was worried was my position, it was me, and the rest of the world was looking good. The thing in 08, everything was broken and bad. So that actually helped in a way that everybody was dealing with the same broad-based crisis as opposed to when it's just you or just your firm or just your fund, where in some ways it can feel more stressful.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  7. “Stressful, but in some ways those events, and we saw it again in March of 2020, we saw it again, you know, around where you see these big moments where it draws people together. So actually everybody gets any kind of nonsense and couch time all dissipates because everyone's so focused on dealing with a task at hand. So in that way, it was quite a good defining moment. The other thing I would say is in some ways it was I remember a few years earlier there was one investment that I was working on that ended up being spectacularly successful, but there was a period of time where I was quite worried that it was going to lose a lot of money”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  8. “What was it like over there? Absolutely. I mean, it was an existential event. I mean, people were wondering, am I going to have a job? It was the year I made partner actually in 2008. And I thought, great, I just made partner is this group, is this business going to exist by the end of the year? So it was certainly...”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  9. “Yeah, I was asked to come back to lead the European business, which talk about buying at the bottom. At the end of 2008, we owned a lot of illiquid assets. And whilst on a relative basis, those assets outperformed what was going on in a lot of other private firms, it was certainly, I think we had 169 positions on the book at the time and there was a problem with 168 of them at the end of 2008. That was kind of like a, you know, almost like a distressed buy at the bottom assignment. What was interesting about that was the quick need to both separate the portfolio between the old stuff and the new stuff because there were a lot of new investment opportunities. And if people were too burdened down by dealing with legacy situations, they couldn't really focus on the new opportunities. And frankly, it had to do with the same with the people.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  10. “And I did a couple of trips out there. And the next thing I know my boss is buying me a one-way ticket to Moscow. So I spent the next couple of years there. The role there was quite different. It was really building a growth equity business. And we had some great successes not backing oil and gas companies or formerly state-owned assets. It was really finding growth equity companies, young entrepreneurs that were building businesses. I did that for a couple of years. And then I moved back to London at the end of 2008, which was a really interesting pivot.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  11. “Low quality bonds, and I thought about what's next. I actually went out to visit the team in Asia and thought about moving out there. And my wife happens to be Russian or Belarusian, so I had an interest in the Russian market. And around that time, Russia was starting to open up a little bit. It was a very different place to find ourselves today. They were starting to want to attract international capital.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  12. “Same companies, yeah. They just became distressed. The higher your bonds quickly went to zero, and then you're buying the bank loans at discounted prices. And that was fairly evolutionary. And then in about 2003, we set up a group called the European Special Situations Group, which was a multi-asset class proprietary investing business. It was centered around credit, but really invested in both credit, real estate, growth equity. I led the corporate research team there for a few years. And then, you know, in a fit of madness, I guess, at the end of 2006, the credit markets were pretty uninteresting. There wasn't a lot to do. It was kind of bad companies issuing.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  13. “So I joined, as I said, in 98 and I was doing PL and risk reporting for the investment grade trading desk and then the high yield desk. I ended up being hired onto the high yield desk as a research analyst and did that for a number of years, a couple of years. And then I was the beneficiary of the TMT bubble bursting in 2001. So the whole sector that I was covering went bankrupt. So I went from being a publishing high yield research analyst to a distressed debt analyst and investor.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  14. “Think what's next? You know, you develop reps. A lot of things are hard to start with, and then it's like I love sports analogies. It's like lifting weights. At some point, you have to start changing the exercise or increasing the weights. Otherwise, you stop developing and learning. And sometimes it's a change. And then you can go back to what you were doing before and you come back and you've benefited from that cross training. But it's the ability to constantly learn and keep adapting.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  15. “You've had a lot of different job descriptions. Yeah, I've been in, I think, all but One Division at this point and I've worked in three different offices, two continents. I would say it's been a little more evolutionary after the first five or six years, but that ability to constantly be learning and at times be quite entrepreneurial in terms of starting new businesses. So what I tend to find is after three or four years, it depends how big and complicated the task is, but after, in some cases, it might be two years, in other cases it may take a little longer, three, four years, you know, you start to”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  16. “Congratulations, thank you I think, first of all, it's the people, just super high quality people across the business, no matter what part of the firm they operate in, just the average. Intensity level, integrity level, capabilities. It's just really hard to match when you go to other organizations. So people is a huge part of it. Another part of it is I've been lucky in that I've, you know, although I've been in one firm for 25 years, I've just done so many radically different things. You've been”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  17. “Wizards of Finance? I wouldn't say that's entirely, but what you find, I mean, and this becomes more and more true, I think, is people become very specialized in order to compete and win in so many things today in finance, you have to be super specialized. So you find people who are super deep in one area, one narrow area, and it might be investment grade credit or distress credit. It might be equity derivatives. It might be growth equity, and they all develop their own little system of useful terms, but then they end up becoming almost like a barrier that makes it hard for an outsider who hasn't grown up in the world of finance, who doesn't have, you know, a father who ran a hedge fund or an uncle who ran a private equity firm. It's hard for them to break in without some way of developing that jargon.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  18. “I continue to find this truth to this day. But when I first joined the firm, I was doing P&L and risk reporting for a credit trading desk and people start talking about DVO on this and duration that, jump to default this, futures versus cash. I didn't know what any of these terms meant. So I took it upon myself to go off and took a course in bond math, took another course in derivatives, and realized the underlying fundamental concepts were barely, I mean, it wasn't even high school math in most cases. And it was really more about learning not a different language, but a different dialect. And it's interesting because you'll find people who'll be fluent in one dialect. And then, you know, they become fluent in credit dialect and then you talk to somebody who works in an equities business and they start throwing Greeks at you and you've never come across these terms. Again, it sounds highly complicated. Most people you could sit them down in half an hour and explain the majority.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  19. “Specific. Yeah, I'd love to tell you there were some great master plan, but in the UK when you qualify as a chartered accountant, first of all, you have to complete your three years training. So, you know, people these days want to change job after a year, 18 months. You had to finish the three years. I finished the three years. I qualified the following week. I lined up a bunch of job interviews with a variety of banks. And again, I ended up in the financial services audit practice at KPMG, so I'd got to know banks a little bit. And frankly, you know, I heard they paid more. So I interviewed all a bunch of banks, got a number of job offers by the end of the week and joined Goldman Sachs in October 1998.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source

  20. “Honestly, I didn't really have a long-term plan. I grew up in a family where my mother was a mathematician, my father was a chemist. I didn't really know much about the world of finance, investment banks were not really a known concept in the area where I grew up. I graduated college, realized I needed to get a job. And my dad had always said, many young kids get this advice, doctor, a lawyer, accountant, engineer, and accountants seemed like a reasonable option. And I kind of stumbled my way into accounting. And what I found was it was just a phenomenal training ground for somebody who wants to then go on to invest, especially doing more micro level analysis, like that background of being an accountant was just was just great bedrock training.”

    2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source