YouSaid · the spoken record

Justin Ishbia

lines on the record: 82
first: 2024-02-26
most recent: 2024-02-26
sittings or episodes: 1
sources: podcast

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“Well, thank you for the opportunity. It was an amazing show, amazing following. I'm looking forward to staying touch. And I know it'd be helpful to you or your team ever. Please let us know. And thank you for the opportunity to share the short apple story.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm right here running short capital. I love what I do. I'm in the second hitting a short capital. This is just beginning of what we're starting to build. You know, I love what I do. It's not work. And so I'm fortunate to have amazing people, great team members. We're all relatively young. And so we're early part of it. We got fortunate that we started relative to early age. We built a team and an ecosystem, I think, is built to last. And so I'm leading short capital. My dad's 76, still works every day, puts a tie on every day. I will work till I die. And I love what I do. And to me, it's about the thing I'm excited about is I love seeing the success of my younger guys. It took a bet on me 15 years ago. Their success. I love seeing that. So hopefully I'm sitting here in 10 years and people join us last year are having the success that guys joined us 10 years ago today.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I think people naturally point to all of the things that going wrong. I'm aware of those things. I think I have to do those days to mitigate it. But just from the American perspective, like, okay, if you could pick where in the world to live that natural boundaries, it's like two oceans on either side of you and friendly neighbors to the north and south. As far as like economies, you know, I think we're the third largest economy in the world, India or China, if you think about it. Those are the options you're choosing to come here. I think like you see what's happened in other parts of the world. Those with come here to learn and train and they want to build businesses here. And so there's a lot of headways and challenges, but I don't think the challenge we're facing today are materially different than the challenges my father faced or my grandfather or great-grandfather. I think it was a lot harder for my grandfather to come from Turkey to the US and know nobody with no $100 in his pocket than it is for people today. And my kids to grow up in an American society, have education and tools that are at the fingertips.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, I am worried about technology is changing the ability for foreign nationals with dubious behavior or desires to potentially do things that they couldn't have done before. I'm worried about it. I also believe that, again, in American, I think Blips, and there'll be times we have to go through rough patches, but I do believe there'll be processes and regulations and things put in place to minimize. That would be perfect. There's always, I think that the young talent will always be ahead of the curve from where the government will be. So as a parent and as a leader, I think we have to be mindful of that. But I do believe that we have to be mindful and aware of the bad actors out there.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“That Americans, my belief, is the most innovative country in the world. Over time, we prevail, and I would say this, that's a little bit of Warren Buffett quailing. Never bet against American ingenuity. And I very much believe in that. So I don't really care who the president is. I do care. I don't know who the president is going to be, but I believe in the American system. I think that we will win for a long term.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't know. I wish I knew good way. That'd be great to know. I'll say this so I think people sometimes forget is the United States is the best country in the world and we're living the best time it's ever had. People are literally dying to move into this country. There's 360 or about us, 350 million of us. We're so fortunate to live here and have the opportunity to live and work rid of the most commercial market in the world, the most structured rules. It's the best place to build a business in the whole entire world. And people literally want to come here from everywhere. So I don't know who's going to win the election, but I think sometimes we forget as Americans how lucky we are. There's 8 billion people on Earth, less than 5% were born here and live here. We forget that who the president is, once that person is voted in, my job is supporting them, even though I may not like the president or whatever it may be. Once the president, they're our president, not that party is president. And so I don't lose no winners election, but I think we should be grateful for where we live and the opportunities and freedoms that we have and the rule of law that we know.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Very different. I'm CEO Short Capital. That's my job. I also happen to invest. I love investing. I'm involved with that, but my job is to put the whole organization in its position to succeed on investing. And to do it from a fun perspective and have to do it at scale, digital equality, you have to do both. And so I think some of the same spin out and do terminate. I think people work at large funds that raise $12 billion and they have one friend at the endowment that they talk to, oh yeah, we'd back you guys. There's someone else that has less you have a personal relationship with a individual family my view is there's a whole institutional process. I've never seen large institutions invest eight figures without a material process. I try everything to point to.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Sure, it's investment advice, but it's fund advice. I can't tell you how often I hear someone who's like 34 years old at a really large fund that says, oh, I'm just going to spin out and run a $200 million fund and start from there. Like, I don't think people understand how hard it is to raise a $200 million fund unless people have things I never have seen. It is really, really hard to do a first time fund, especially in this environment. And I think.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“So that's a, again, I'm a processed person. And so our investment committees, if you're in the meeting, there's a team we call the devil's advocate team where you assign up to five people to be critical and kind of the jerk who is opposing the deal. Even if Harry loves the deal that's in front of us, my my job is short capital. I assign the devil's advocate team. I know Harry's really smart on this topic. I'll make sure Harry's on the devil's advocate team. And your best friend will lead the deal. Who do you think this is a home run deal? But for the investment meeting for the hour and a half or two hours, your job is to be the devil's advocate and point all the things that could go wrong. I think that is a structural thing that goes into effect that I think has really positive impacts. And then the guy who's doing the deal is a pissed at you that you're saying his deal stinks because he knows your job is to be critical. You may love the deal after you can vote in favor of it. But while we're discussing it, your job is to put all the holes in it.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Never do a deal alone. I think it's really important to listen to your peers, have colleagues around you. Never do a deal alone because you're not the smartest person in the room. Having people to question you and judge you and professionally criticize the opportunity, I think that's really important. Never do a deal alone.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Injuries like in my day job, if I hire Harry to be my CEO, like absent a major life instance, you come to work, you know, and playing on the field almost every day. If there's 20 business days a month, Harry's playing 19 of those 20, you know, consistently, put it that way. In pro sports, rightfully, people get hurt. And that's it. You can do everything right. And then someone's ankle gets injuries as contact and non-contact injuries. I can't plan for the contact injury, knee bumping a knee. And that's really hard when you do the things right and you're in a really good position and someone has a knee injury and all of a sudden the competition sports is so tight and so close. An injury to a one player changes the dynamic team materially. And so that's hard as a business person to like, I'm learning how to handle that. I don't know how to answer that at this point in time, but that's been a surprise at how impactful.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“The collaboration and the friendliness of the people, other owners. Now, on the court, it's fierce competition, but at the end of the day, in the NBA, we are all a business partnership. And guess who we're competing against? Other forms of entertainment. In reality, Harry has $100 to spend. He can go to the movie theater. He can go golfing. He can go race car driving, or he can spend it on basketball. We as a group are collectively trying to get Harry's $100 of entertainment to come to this group, and we are trying to do that together. Now, drafting a player or trading, like I want that guy to do the worst and me do the best. But as far as the collaboration and friendliness to help the business side and compete against other entertainment options surprised me in that concept. And that's been, I think, a really positive outcome.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I think the biggest thing is how to communicate with our portfolio managers. So I've always believed, like, no, my role is one of the leaders of Shark Capital is I communicate to my partners and they communicate to the portfolio company CEOs and they communicate to technologies change that. We use a simple app, Bomb Bomb. I will now routinely record a four-minute video on something and I want me to answer both. Technology is enabling me. I'm going to communicate to my team. Hey, go tell them that we're going to focus on August this year. Here's a way of auditing whatever may be. And I'm going to record a four-minute video. I want the message to come directly from me because telephone game gets in the way. So I can record the message relatively efficiently and get to where it's got to go. My partners and our colleagues can also disseminate it in both ways. So what's changed the most is I'm doing a lot more direct communication at scale through videos I think people want to see the face and hear the story. I want to hear my message and my words get across exactly and my partner deliver it their way also. So I think that's changed a lot for us over the last year.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“With certain kids that had opted to learn this, made a friend over here, and now he's going to come back guy's house. He's learned it like I was like, wow. And so we do that here also. Like you pay for those type of things. And the impact, you got to start with your corner of the world. And I think, you know, the corner of our world isn't I have most contact with is people in my office and be able to helpfully help those genders, kids, or grandkids go to camp they never gone to before. That's rewarding.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I was like in high school. Dad, I know you do okay financially. How come we don't go to like galas or charitable events in town and like, you know, you're a sponsor for something? And he said, he looks at like the ratio of what the mystery of costs are and stuff. He said, I don't see the impact by giving $5,000 to XY Foundation. He said to me, stood up my mind and now we don't hear insurer capital. He said the building he works in. He didn't own it. The building he works in. So this janitor is here. There's parking garage people. There's maintenance people here. He said, what I do is every person that works here in the building that I see and touch every single day, I pay for their children's or grandchildren's summer camps. And he goes, it's had a huge impact. And he goes, I see it because that janitor who may not be able to have their child, their grandchild go summer camp, now they're going to do something that they never were doing before, have been able to have an impact. And I get to hear back from my grandfather that my grandson is able to know mingle.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I don't think I would do much differently. To me, I would invest more. That's what I would do. I would invest more in my own deals. That's what I would honestly do. The thing I struggle with on money part is like, when do you give it away? And there's trade-off those things of like if I have $100 right now, but I'm confident I can turn $100. And if I have $100 in five years, is it better to give $500 away in five years? Or is it better to give $100 away right now? There's no answer to that question, right? Because give $100 today to a good cause and you end up supporting a child that does well and he's able to have some downstream effects. Is that better or is better to keep it for five years? Don't help that child and get 500 away in five years. That's a struggle I personally. It's just both, I think, but there's really no answer to that. That's something I struggle with.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“How do I do more good with the money out that we've been able to earn? And so I view money as an enabler and an opportunity to do more good and more opportunities. But if I focus on the success part, I know what will happen next. And so that to me is the focus of my energy and time.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Money follows success. And so I guess my mindset is focus on success and the money part will follow. You know, my partner Brad Moore has my partner's at Short Capital. We went through YPO. We bonded. We were at an event together with it. People go out of the room and say the word that most one word described your ethos. And he went first and I went second. We'll have the same word. And the word was win. I think about money. It's more about how do I win at everything I do at life? How do I have success first? And money follows. There's different parts of a money journey. There's like, you know, when I sold our first company, X dollars from the account. I literally looked at the kind. I said, wow, I never thought I had that much in account that long in time. And then it goes on. But my personal view is that all the studies say money helps enable up to a certain point, but another friend of mine said, money's an amplifier. If you're a jerk and you have money, you become more of a jerk. If you're a good person and you have money, you become more of a good person. I try to think of it that way and I've had a bit of a success.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I may steal that. My dad used to tell me kids do as you do, not as you say. It's a very similar mentality. But the elephant one makes a lot of sense to me also. I think that's right.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Know we have a house, we have a car, but we also pretty humble. I still drive 2012 Range Rover. My parents still live in the house. They bought in 1980 and still the same. My bedroom from there is still exactly the same. So I think it's how you raise them. I read an article probably 20 years ago that said the highest indicator of SAT success for a child was number of meals dinners per week where both mother and father at the table. That stuck with me. How do you raise them? It tells me I have to be at the dinner table four or five minutes a week with my kids. And we ask the question every night at even age five and three and one, what was the best part of your day? And have them talk. And so I'm sure as we get a little older, the change will come, but I rely on you if I said I had answers here. There's no silver bullets. I read about this sort of stuff, but it's a high priority for me to make sure you get this right because I will not raise kids for little brats. That's something high in my list. They need to know they have to work for what they get. I want them to have a rewarding opportunity out of them.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“It's super high priority to you to think through those challenges and create again on things system person. How do I create an environment where they know they have to work for what they get? My biggest thing is I want them to be passionate about something. I don't care what they love to do. But I think if a child or a person loves something, they'll be relatively successful at it. They put their heart behind it. And so my child will buy more financial means than most. I've already told them it isn't your money. It's your mom and I's money. Life would be given away. I will make sure you never go hungry and I'll make sure you have education. But you have to earn your own place. And I think people know also I'm still early on this journey. I've talked to a lot of friends, ask this question all the time and know what I've heard a lot back from friends is not allowing them to work for you early on. No, they must go get a real job somewhere else, have a promotion somewhere else before they come back to the family business. My business probably does not make sense. My business is a little bit different, but they don't fully appreciate understanding at this age.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Walk in. My kids are still young enough. They're like, Dad's home and runs the door. That's like my number one thing my dad tells me as I get older. He said, that was the favorite part when we were kids. And he also told me something. He's like, Justin, your kids are never going to say, hey, dad, this is the last day I'm going to run the door. And he goes, enjoy it while you will because they're going to one day stop running the door. So enjoy it while you got it.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Ethical things. Again, I'm a goal person. So, like goals. At the age my kids are, I put them down a lot. And so I have a goal for my two oldest boys to literally be the one who puts them in bed 180 nights per year. So literally I have a tracker that is it comes down to being X bounds per month, about 15 nights a month or so. And I'm trying to be the person who's a personality puts them in bed roughly 180 nights a year. I tracked my mom. I have a tracker that does that. To me, it's like those type of things. I have goals of one-on-one time with them for a special like getaway. And like I think writing those things down and measuring myself, if I always accomplish those goals, no, but then another goal, really important things someone told me years ago and I tried to do it with my family. I never walk in my house after work on the phone. I walk in the door on present. I may sit in the garage for 10 minutes finishing a phone call, but I won't walk in the door with the phone on my head. And so I walk in, hey guys, and my favorite part of my day.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Great father's my dad. So, like, I got super lucky having to know one of the best fathers, my best friend, mentor. I quote him all the time. I've learned more from him than anyone in the world. So, no, he always had time and balance for me. And so I'm early in fatherhood. My oldest is turning five in two weeks. My middle is turning three next week. And then I have a one and a half year old. So like I have a hard judgment people to say, was Lichen someone's 14 or 18? I'm not there, but my view is I have to be there for them. And it's my most important job. People say, like Justin, even financially successful, why do you work? And my answer is kind of like, my kids have to see me grind. They got to see dad get up every day and put on a jacket and hustle. I think being part of the dad is showing them what if you love what you do, it's not work and giving them, I want them to find something they have passionate about. And so as a dad, I think that's super important. I want to be there. I want to push their games. I'll be involved with their life. I want to know their friends. I want to do all the things that dad should do. But like on like the more specific.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“And by the way, it doesn't mean that someone gets off easy or they don't follow. I'm tough. We have goals that we agree upon. And if you don't hit your goals, like I'm relatively unforgiving. Like there's process around that sort of stuff, but the human side is always there. Again, it's not one thing. It's like we have days of service. We have the families and the kids and we give back to the community. It can't be one thing. To me, it's a culture and ecosystem of many, many things together that add up to a place where where would I want to work? Where would I want to spend my, we spend more of our waking time at work than anywhere else? And so how do I create a place where people like I have professional opportunity? I like the people I work with. I get paid fairly for this and I think I have future upside and I have intellectual stimulation. Give me all those things and I think you have higher attention.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Last year on benefits of something and someone had a problem. My answer to our team was make it right. I don't care what it costs. Make it right. And if you do that over and over again, it adds up and it matters.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“And in fact, it's the thought because this effort, you think about it, people care about those things as opposed to a random blanket you buy off of X.com or whatever it is going to be. Like, you know, those things matter. And also, a really important part of our culture is also, I think people know people don't camera should know so much you care. And I care about my leaders spouses a whole bunch. We invest a lot of effort into making sure they feel part of the family. They're involved. Because look, everyone has a bad day. No matter who you are, what you do, you have a bad day, and you come home from work, he or she comes home and they're frustrated and they complain of their spouse. That just happens everywhere. One of my goals of relationship building over a long time is for that spouse to say that the person works short capital. Yeah, but they're really good guys. That right there diffuses many things that people of mind may go down a rabbit hole which wanted to go there. And so if they believe are really good people and they believe in you right by the organization, right by the person, it's always my mindset. Make it right. We had a mistake.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Shows every employee a short capital, their spouse's birthday, and a children's birthdays on every spouse's birthday. There's flowers that come from shore capital to the spouse. For every child's birthday, there's a little cookie bouquet that goes to that child's for the birthday. Makes me nothing more happy to get a random text on a Tuesday morning that the child of my partner is saying, thanks for the cookies yesterday. It was a great birthday. Those are the little things I think that add up over time. And it is a hard implement that. It is a relatively easy thing to implement, but it has, I think, an outsized impact and creates bonds across the organization. I think that's one of the things I really focus on.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“They become friends with each other. And then when they go off on their own to go to business school or they go to working a company, they have contacts and relationships. I think there's a more enjoyable workforce. And I think it creates more stickiness to those we want to be here. I love it when our guys gets married and there's like 17 people from ShoreCap at the wedding. I think a lot of pride in that. When I got married, you know, I invited every person Shore Capital. So now, and by the way, I know Doug really well, and Doug is not the best investor I've ever met and top handful for sure. And I think that his approach is very spot on. You have to keep your standards. I don't trade out standards at all for friends, but creating an environment for the organization where people are friends with each other, little things, the little things that matter. Now, an example, I stole this from somebody else. I'll share it here. And I think others steal it. One thing to do at short capital, I think, is really impactful. I think creates friendships and creates a lot of loyalty to the organization. It's super simple, but I think super valuable. We have a database.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I want to create an environment where people want to be around each other. You know, we're all fortunate enough in our life right now to pick where you work and have choices. And the best people have those options. And so I believe by working in an environment where you have deep relationships and friendships with people, I think it creates a better long-term success strategy. By the way, I'm not trading off one penny or one inch on quality or execution. So if they don't perform, then they don't have the opportunity. I have a really, really high bar who gets to a certain level of the organizations, vice presidents and principals and partners. If you're there, I think about this way. I'm giving you a role as a vice president. I'm giving you a role for your career unless you mess something up. That's how I really think about it. And I think in absent bad behavior, which is a whole different conversation. The creating an environment for friends and placement behind each other, that's really, I think, an emphasis on the, I would say, the younger half of our organization, where I think I want to create the option where they want to be on each other. They work in the bull plane late at night.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Think I failed some of those LPs as well, like 10 years ago now by letting them go do their work, write their investigative memo, go do their thing, and then not have them come into the fund the size they wanted expectation setting. And since then, of course, I've changed my approach and I'd be very clear on the front end. If you go do this.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I failed a bunch of times. One that sticks out the most to me is when we raise our first fund, it was a small fund, a $100 million fund. I was so excited. We had my view, we had some name brand LPs that I was really excited about. And the very last week, they left me at the altar. We were still a month close of fund, but I was frustrated that the people I thought were coming in didn't come in. So, okay, close that chapter. That was the framework for it. Our next fund we raised, you know, $250 million, whatever it was. I told myself, I'm not going to be in that situation again where someone I wanted involved would leave me at the altar and we could be short of what we needed. So I went out and I made sure that we had a bunch of interest and I had, again, way more than we needed. The mistake was I didn't communicate well to those LPs and all of them went and did their work and all of them came in. I didn't have room for all of them. And the outcome was some frustrated LPs who had minimums they had to invest. I could give it to all of them. A really big learning lesson for me on expectation setting.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“An article and post it in their office that says no, the best deal done last year in your industry was done by another firm. Just tick it on the wall, put a little pin in it, tape on someone's computer, they walk in, they're like, that's bullshit. My deal is better than that. Other people need to be consistently talked to and praised. I think a manager's job is to meet the great executives where they are and where they want to be met and give them what they need to motivate them. And you always have to be honest, be truthful, but I think there's ways to manage to be able to say similar things to the best people. And my job did the best out of each of them. That's by creating a system, give them resources, also giving them the confidence that you are really good at what you do. Go get it done. Improve you should have more responsibility and more upside. And I think those who do that, my organizations get promoted quicker.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so I read a book about Phil Jackson. He wrote, I'm part of it, something to the following effect. Assuming he's managing the Lakers, he had Shaquille O'Neill on his team and Kobe Bryant on his team. We had probably two of the probably top 10 players of all time, roughly. Maybe top 20 players, whoever they were. They're two great players. And he said there's a point in the game where both of them said they both wanted the bowl. They both wanted the ego stroke. They both wanted to be told they were the best. And he said he would after a timeout, basically step away for a timeout, grab Kobe by his jersey. Kobe, get over here. You're the best goddamn player on this planet. Go out there and you make sure you get this fucking next. And a second later, you turn around to Shaquille and they'll grab him by the jersey and say, Shaquille, get over here real quick. You're the best goddamn big man I've ever seen in my life. Go bashe the ball and score. They're both accurate and true, but he has a little bit of nuance and both needed that. You have to understand what that person needs and what's motivated them. Some people get motivated by silent pressure. Simple things like just take.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Best people want recognition, whether that is compensation, title, or something. There's lots of ways to do it. I think people also want responsibility. I think that's an important part of it. I think that the best people want the ball early, whether it's compensate. I bet you there are a lot of really talented people out there that would trade off $20,000 increase in compensation, the right to be the lead on the deal and be the ultimate decision maker on certain parts of the transaction because they would feel that experience incredibly valuable. By the way, I want that. I want the guys and gals early into their career to have that ball. That's why I started short capital. I was 31. I craved the ball on my hands, make the judgment calls, and I think the best want that. That's why I have a bunch of systems and processes in place to hopefully have guardrails to allow them to make the judgment calls. It's their judgment call on negotiating certain parts of transaction within a framework. And I think that is really rewarding on top of compensation, on top of other things, and professional upside. They feel like they're...”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“The wins, you catch people doing things right, reward them in the moment. I think that creates a culture people want to excel. We have a thing every Monday morning we have our meeting. We have a hall of fame. And so if someone in the organization sees someone else decide it's really awesome, a process, a report, a judgment call that was awesome. It nominated for the Hall of Fame. We publicly recognized that. I think it's no one factor, Harry. It's a system and it's many. They all pile, they're all pennies. They all add up. You can't just say do one. It's a culture of success and rewarding success financially. I think people might be rewarded public sort of praise. People want to feel good around the people that care about. I think all those things together, plus market comp, plus friends, but it's a system, I believe that matters.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I love giving more upside for performance, but also my dad taught me this, and I do this all the time. I think it's important to have surprises to the positive consistently. I'll give you an example. So at short capital, whenever we exit a business that has a return that's been greater than three times your money, the show forth in all of them, but we call it a sure win. I'm a believer that when we win, the whole firm wins. From the most trigger person in the organization, the most senior person, everyone gets paid a bonus outside of their current compensation package. So let's say we sell business tomorrow for like five times our money. A front desk person gets a bonus of X dollars, the analyst Y all the way up the chain. Everyone wins as a firm. And I think that creates camaraderie and culture because everyone's pulling for each other to win. We celebrate those wins. We have an exit. Oh, we don't have money. We have a miniature Stanley Cup. We take out the town. We celebrate. We have a horn that goes off that celebrates the win.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Work, I think I tried to create environments in my organization where people have a peer of brain cells with. I think those people who are best are.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“The people who work hardest don't talk about it, and you don't see it for 10 years. It's like almost like a butterfly. That caterpillar goes in that coup, whatever it is. And you can't see what they're doing for a long, long time. Their head is down. They're hustling. They're doing what they do. And you know what? Eventually that beautiful butterfly comes out and people can see it. I always tell people in your 20s, you're an apprentice. Go work for somebody who is a star and be a sponge and learn as much as you can. I don't want someone to burn out. To me, it's about it comes within to drive them within. And I think a lot of times people have a chip on their shoulder. They have something they want to prove. Or just be competitive with something. You know, my brother and I are best friends. I want to beat his butt always. I want to be better with him in everything I possibly do. And I think he does the same thing. And having somebody, I really believe that the best and most talented organizations and people have a rival they really respect. I think the Red Sox are better because they hate the Yankees. Coke hates Pepsi and they are better because other one exists. As far as hard.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I wouldn't say the work ethic. I've never read somebody and they said, yeah, I don't work so hard. It's hard to get a proxy for that unless you have an off sheet reference from multiple people, you know personally, it's really hard to get a read on that because if someone calls you for an offshoot reference, you don't know them at all and you like the person, I think Harry's a good guy and Harry's, I say Harry's a B for me, a B or B plus player on my team and you left the right way and called me four years later and say, tell me about Harry. I'm not going to say that Harry stinks. I think Harry's pretty good. He did a good job. And I think I like Harry and a house's work ethic. Compared to what? So that's a harder one to get. I try my best to get to it, but I think yes, where I err the most, that's fine where I err the most, that no one thinks they don't work hard. That's just the reality of it. And so you have to be able to know that bias and try and figure out different mechanisms to get underlying truths.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“To get as best I possibly can, but I want people to be able to do better here in the system than anywhere else than for our portfolio companies. I did a board meeting yesterday. I was sharing with manage teams like your job is not to go find 5U. I can't afford five of you founder or CEOs. That little talent, I can't find over and over again. I can find you to build something where you can bring in relatively competent talented people that will thrive in your environment that you've created and they will be more successful because of what you've created. And that to me is what a great business builds.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Best organizations create an amazing system. You can put a relatively average person into the system and have extraordinary results. An example I like to use is if you're an American football fan, the New Compatriots over the last 20 years, probably one of the most successful football organizations. They had a system that was so successful that they would basically bring in relatively average players and they would be outperformers in that industry and that team and they leave and they go somewhere else. They'd underperform again. You create enterprise value. You create success by building that system where you can plug and play relatively average people into the system and then you have a better outcomes. You also look and plug in superstars like Randy Moss, for example, went into that system and even excelled even further. But then a lot of average running backs, for example, went into that system, performed there, and they got paid and they went somewhere else and the performance. And so I mean, my job as short capital is building a system where we can bring in talented people.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“So that's answered the question a couple ways. First of all, we find the most important attribute is curiosity. People are just naturally curious. Harry, I'm guessing you a little bit. You read everything you can find. You listen to podcasts. You talk to somebody and they ask a question, pull a string. You're just naturally curious. I find that to be a really important attribute when I'm doing off-sheet references. Curiosity meter is high in my list to figure that out. Those who are curious and have certain level firepower intellectually, they always get there. But people succeed in our organizations if three things are true. Number one, they have the mental firepower of the job. If they don't, shame on me for hiring you. Number two, they have the work ethic to do the job. If they don't have the work ethic, shame on them for not having the hustle. In bucket three, we train them properly. If we don't train them properly, shame on me. But if you have mental firepower, you have the work ethic and we train you properly. I am confident you will win in our system. And I personally believe that the...”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“I like to be able to hopefully share what we're trying to do and get people to buy into it. I think my job is to sell the vision and sell the best people to come work with us. I have a COO of Shore Capital. It was a long time. My best friends is a star. He's amazing ops. I think my job is to make sure we do all of it well. But if I have to pick, I'm sales. I need to over index on a part that you are not out there.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“And we look at where we are in our investment. If we're 100 men of revenue right now in the goals 300 million revenue in four years, but my CFO is at his potential. He's performing high, but he's at his potential. We want to triple size of the business. What should we do about it? Those are the questions I think our best CEOs are asked to go, hmm. He's at his potential or at her potential. I need to probably top grade here. You have to always try and think about the kind of culture and the ecosystem, what you're doing with. But I think my best CEOs are always trying to get value. And so I'm a big sports fan and like a sports quarterback is the most valuable position in football. The left tackle is probably the next most valuable position in football, American football. And the punter is probably less valuable. But my best CEOs are always kind of gyrating to find the most valuable punter for the dollar. And they're always hustling to figure out how to top great talent just a little bit everywhere. In an appropriate way, and I think those who are able to get the most talent around them and that nine box gets to those most upper right portion, that's when we...”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“So we do this nine box analysis, we do it twice a year, but the y axis is we call potential, and the x-axis is performance. And it's low, medium, high, right? So the top right box, the ninth box, the upper right corner is high performance, high potential. We sit down with every CEO and we evaluate all of their reports. We call the CEO the word letter N, like Nancy. N is your CEO. The board is N plus 1. The CEO's reports are their N minus one. So like a CFO is an N minus one. N minus two is a controller who's like reports to the CFO reports to the CEO. And so we sit down and we map out the whole entire C-suite, the N and the N minus 1s with the CEO. Usually the partner at the firm will do it on its own. And then we share it with the whole player firm. And then the CEO will do it on his or her own. They say, okay, where's my marketing person? Where's my finance person? Where's my salesperson? Where's my compliance person on this?”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“They try and do too much themselves. They think they have to be the CEO, and I think they have to kind of do everything. I think they're hesitant to elegate too much. The best ones right away know my first job is to go hire the best people around me. And they're very aware of their own strengths and the weaknesses. I usually ask their CEOs and I interview one of my common interview questions is, I pick one, are you a sales focused CEO or an ops focused CEO? Which one the best CEOs? They can be the one, but they got to know which one they are. And they got to then say, I'm going to over index resources on what I'm not. Our best CEOs are able to say, I'm one of those two, or I lean more this direction. And I have some of my network I used to work with who I have high confidence in, who is my yin to my yang. I'm going to go get her or him to join my team, our best CEOs. They're consistently top grading talent. I have a whole process around how we get better.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“You are probably recruiting and retaining the right way. You are probably holding your town accountable in your division if you're successful in that division. What you probably have had to do is set the vision. And by the way, I have a board who will help you set that vision. We will line up the vision. It's going to look like what success looks like.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“Round two. And so if you went from a 4b with us to 28 and accidentally made eight times your money, now you have a big boys called. Blackstone wants to back you to go do something all over again. So we're hopefully helping future really valuable CEOs for other ecosystems. People want to come to us for that part of it. But also our first time CEOs that aren't 28-year-old individuals very first time on sometimes a lot of times they are running a large division of a large company that's doing $400 million of revenue, but they've never had the CEO role. They've been present of Division A and now they're going to come down market to a $75 million or $50 million revenue business in BCEO, which now you have to change. My view, a CEO has three jobs. Set the strategy and vision for the firm, recruit, retain the best talent, hold it talentable. So bucket two, bucket three, the division of president is doing. Harry's the division president of a billion dollar company. He's running a $200 million P&L.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source
“It's probably so when I started short capital, I was in your camp. So our first three or four platforms, I went out and found CEOs that were more experienced at Chris York before very established CEO. I felt like we had to get the experience established person. My biggest, I'd say, paradigm shift in investing is give me that young, hungry energy that wants to run through walls has yet to make it yet. I'm going to make mistakes, but remember, if in a construct, in a system, they're not alone. Sometimes the venture community, you're more a minority investor, touch base them four times a year. It's a little more hands-off. I try to build a system where we have a board seven individuals on the table who are helping that CEO bring the CFO. We have elite director of a platform, bringing in a whole team around them, that young and hungry first-time CEO, they have to make it work. It is their professional career on the line, and they also know if they succeed in our system, they become incredibly valuable.”
2024-02-26 · The Twenty Minute VC · 20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho · IDENTIFIED FROM THE TRANSCRIPT · source