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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“Recognizing analogs and other industries and porting it somewhere else that can become helpy other industry or business get their faster as a part of the platform value creation.”
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
“Eventually exit our investment, the lights on the room, and everyone can see everything transparency and data impairing to your peers and having industry norms. I never want anyone to do anything that is not safe. We always say good medicine is a good business. I'm a big believer of shine the light, you can't measure, you can't manage it. It's more of just tracking it just by the very tracking of number of something per week or per month or per whatever it may be, people start comparing themselves to their peers. And in my experience, the best ones are competitive. They go, I don't want. wait, Harry, no manufactured, no eight widgets last week. And our line manufactured six. Why did they go on faster than us? And competitive people usually want to be the guy next to them. And those are the people that issues thrive in our system. There's things we've learned in X industry and go, wow, they're doing something pretty amazing. We should port that over here. We call that lift and shift, where something is done really successfully somewhere and we think it can apply somewhere else. It's one of the most valuable parts of our platform is.”
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 won't partner with them if they are open to the things we want to do. One of the benefits of us starting with a board of industry experts, we're able to start in the front end of knowing what good looks like in that industry. We're able to say, you know, this is what the industry metrics are. It's an urgent care industry. It's three visits per hour. I always tell people how we think of short capitalism. If you can't measure it, you can't manage it. People say private equity can be tough and like fire people or that sort of stuff. No, that's not how we think about it. I be private equity in the following way. We're a huge flashlight and walk into a room that may be dark. I'm shining the light everywhere in the corners and the crevices. And what I found is those who are really good at their job are like shine it here. Like look at me. No one's recognized me what I've been doing for the last year. I'm performing at a really high level. They're super excited. And those who are maybe less than good at their job curl up and kind of hide from that light. And we try and shine light everywhere. And so 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
“One even cut your eye. But the follow-up visit for a standard procedure, the nurse practitioner trained the right way with the appropriate process to ask all the right questions and flag there's a problem, but 80% of the people that come back is no problem. So now I've taken away the follow-up visits from the doctor unless the nurse practitioner says there's a problem and he can go do more of the things that he or she loves to do. People love doing things that are the most complex of their ability. And so we want to put people in those positions. We believe people excel at things they love to do and they love doing things that are complex that only they can do. I think that's where a company thrives or people are doing things that are always unique to them and always professionally challenging and 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 think though the multiple arbitrage and the arbitrage for us is that you're oftentimes partnering, the bigger value is partnering with amazing people who are really good at one thing, picture your eye from a cataract or whatever it may be, but they focus less on the business side of the house and they let a lot of the low-hanging fruit go because they're doing quite well as it is. And so we focus on this concept of light switch EBITDA, where contractually we're better, where there's relatively low-hanging fruit, but we know we have executed before and we can bring new things to the table. So for example, an ophthalmologist has a line out the door, what are things we can do to help an ophthalmologist? Well, we can hopefully bring nurse practitioners or PAs in to helpfully do the things that are more administrative or not what a doctor should be doing. So we use the terminology to short cap all the time, top of your license. We believe people love working at the top of their license, doing things all they can do. Cataract search is all”
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
“Right way. And so I think that's where I would say made mistakes. So now we're so much more focused now in the early days on making sure that if scale and efficiencies is a big part of it, it's ensuring that as you grow.”
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 we've made investment in another sector where we believe that scale matter is another part of dental industry actually. We believe scale mattered, but the state by state regulation was so overbearing that the complexity of the new state was so challenging that it outweighed the value of scale. It was almost like you're running two separate businesses across state lines. The cost of goods sold and the vendor cost, that part was right, but the payment structure and the rules in that state were so different. So it says the wrong example, but in nurse practitioner works in Illinois but does not work in Indiana, but in Wisconsin, the nurse practitioner works, but it is only able to do A, B, and C. So these are three states with the exact same industry. You get paid different, you have different rules, different training requirements. Select your three businesses. So the efficiencies are sucked up with administrative burden to run three businesses.”
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
“Or 20 of EBITDA in four or five years to home run. Then we succeeded. Let's say we're at 19 of EBITDA and I still see a runway ahead of us, but I see Harry, you kind of tapped out. I think it's the wrong call for an organization and for a firm and for investment to say, Harry, I'm letting you go and bring in Peter tomorrow to be the new CEO. In that fact, better, we're a seller because we've accomplished our goals. We said what we were going to do. Even though I think there's run away ahead of the opportunity, it's the wrong thing to do to the person and to the organization to let Harry go if we've accomplished our goals. And there's just a natural j-cur. It's time for a new round of investment. It's time for a top grading of the team. But I'm not going to let go of the guys who got me 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
“Things become more valuable, develop an ancillary revenue stream. You can develop ancillary revenue streams that the small guy doesn't have that you have because of scale. I'm not a seller in those industries. I'm a buyer. And so I'm always thinking of ways where scale can give me opportunity to be successful. And when you acquire, we are a buy and build firm, gives you an opportunity to by adding more to the team, it increases the value of home credit platform, just what they say in venture community is network effect. I think it's a different way of saying it, but there is by being part of a platform become more valuable. I think that's where I focus on. And then when we sell, I don't think that makes sense any longer. Or sometimes your imagination has kind of runs course. And that's one of the things I think is hardest to part and sell, but it's the right call. So let's say, Harry, we partnered together and we're going to do a veterinary rollup. And you take a chance on us and you're a first time CEO. About 75, 80% of our CEOs are first-time CEOs. And I say, Harry, I'm going to back you and we're going to start or two. We've done the 50.”
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
“Gloves and all sorts of other utensils, whatever may be your tools, they're cost a dollar, cost 70 cents with us. I love investing in sectors where we can make acquisitions where day one we acquire is more valuable. We call that a short cap, we call it light switch EBITDA. It means by contract, I have something that when you become part of our family, you make more money just because you're worth us, period. Not operationally changed it, which we'll try and do not because we made something better, but just by the very fact you're part of our family, the costs from the vendor goes down, which increases your margin. And that's something we spent a lot of time thinking about. And in this year, there's more opportunity there. There's more of that. And the last part of that is also ancillaries. So you can be investing in a sector where a TPA sector, you're holding millions of dollars, hundreds of millions of dollars as a custodian when you're relatively small player, you get almost no fees from a wells far ago or a large bank. Bigger you get, you can start having some fees and credits.”
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
“Medicare, there's no Medicaid, there's no Blue Cross Mield. You can raise price there if you're the best person in town. This isn't like rocket science. If you have a waitlist to get in to see the provider and you have a high MPS score, you probably can raise the price. So for me, yes, when did he get out? It's when you feel like the acquisition prices are unreasonable. You do not believe raising prices in a outside the normal course makes sense and you no longer can increase the margin of the business through scale of reducing the cost of your vendors. The most valuable business is where you can consistently increase your pre-corporate margins by lowering the cost. And so like in orthodontics, the bigger you get, the lower you can buy Invisalign from, lower the cost. And so the bigger you get, the more valuable asset. So if Harry wants to sell his practice to us, if you call paying a dollar a unit for the hardware or paying 80 cents, day one, you're more valuable part of our family. And if we're also buying from McKesson or Shine.”
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 think two things occur in an industry things go from my opinion novos, which means you open or greenfield a new location to acquisition, and there's opportunity for both. And so industry may start out like the urgent care industry. We bought served in that sector 12 years ago. All we would do is de novos because there's only 8,000 in the US. It is only like 12,000. It was about green space. It was going to locations where no one's been. And after instrument mature a little bit, lost relatively smaller ones out there. There's like a path that industry goes through and it goes from de novo to acquisition and to industry optimization. And for us, we love investing in spaces where scale creates value by synergies, lowering of cost, and increased price. Three areas we love a lot we call healthcare light, which is veterinary, med spa, and orthodontics because there's no third-party reimbursement.”
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
“My homework and others, and this is like a secret sauce, but copy it. I think I wish others would do. I think it's the right way to run investment. So if we're going to invest in ophthalmology platform, when we bought our first ophthalmology business, which is Atlanta, we bought it when it was roughly 10 of”
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
“12 times EBITDA was so expensive. That to me was like music to my ears. Okay, let's go one step back in the food chain. Our competitive advantage is we can do it to a niche where very few are playing. Buy it, which three of EBITDA and grow the business. And so think about competitors, you just look at the local competition, the regional, and national, especially in healthcare, where I'd say about three quarters of where investing has been. It's a state-by-state game. Medicaid in Texas may be very different Medicaid in Utah. You have to know the nuances. And so it may be a really good physical therapy company opportunity in Utah is not so good in Texas and vice versa. So there's like state nuances and also even local overlay with like local credits and sort of incentives. So I think you have to really get in the weeds and know your local competition, but in healthcare, I always say it's inherently a local business and we want to become the dominant player locally. And we'll get in multiple markets and we'll land and expand. But when we get into certain markets, it's about who's in town. And we're not the smartest guys in the world, but like you ask about competition. So this is just...”
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 mean, so we like to think about where can the small player win? And that's how we think about it. And we like to invest in industries where being inherently local is a true competitive advantage. People want to feel like you're a cottage or boutique or a small field where you have a relationship with the customer. We usually like to invest in those sectors where short capital is not really good is if you have to be multi-continental, we're not good at that. You know, so there's some like drug pharma companies that require testing to be done in India and in Western Europe and the US and South America. Not for us. That's not something that we think we have expertise in, nor should we with our capital size and allocation. But where we have some kind of advantages is where something is on the smaller side, where the local player wins. And we also like when we can get to places before larger funds can get there. So an example probably a decade ago, I heard over and over again from a lot of larger funds, they love the veterinary industry. But every time a platform that was of scale came to market, it was”
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 it's not super efficient at the investment. It gets super efficient. I'm at 24. So let's say we have a $500 million fund. I'm going to put 12 portfolio companies in there, roughly $40 million each. I can get to, when I make three investments all the same time, the same quarter, whatever it may be, I'll get $40 to each of them. I can get probably 18 months in and go. This is the thesis we need to double down on. I'm going to change my allocation from 40 to 80. And the one that we thought was pretty good, I'd be 42 or just to 25. So we can readjust our allocation while we have some more knowledge of the industry. I've never bought a business where I knew everything. It's just you make mistakes. And so once you get in the game with the people, the industry is the most important part for me always. When we get the right people with the right industry, with the system and the process we believe that we've executed on as a firm for a long time, usually it goes pretty well.”
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 wrong urgent care operator, and we've deployed 22% of our capital to that thesis with Harry. As long as Harry isn't fraudulent and isn't horrible, I can do a second investment in that exact same sector in another town, and I can go partner with Peter. And I can say, Peter, now you're the platform. Peter, now Harry, you're the add-on. And my margin for areas. I have two or three shots on goal. If I miss all three of them, I'm going to have a bad outcome. The opportunity to almost reset by having dollars go in later that is equal to the first investment i think has created a really competitive advantage and that's a function of the size of the market we plan”
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
“Our margin for air. Like many private equity firms, we allocate a certain amount to a thesis. Let's just say we're going to allocate $40 million thesis to invest in the urgent care industry. More often than not, before we make the investment, we have a board in place. So I'll have my board in place before I even buy the company. And so they're helping me think through the challenges of buying a business before you invest. That part isn't that unique, I don't believe. The next step, I think, is unique is that most other private equity firms in my experience is they commit $40 million to a thesis. They'll deploy $25 to $30 million or $35 million for the platform and reserve $5 to $10 million for the add-on. We're the inverse. Our platforms are really more, we'll put $10 to $40, 50% of our capital in for the platform and reserve the rest for add-ons. And why that's so important to reduce your loss ratio is I can get the first investment wrong. It can't be so wrong that it kills you. If I try and back Harry and Harry,”
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
“No, I mean, we're buyouts, right? So we're micro cap, but just for those who don't know our firm very well, we focus on investing with businesses $1 million to $10 million of EBITDA at investment. We make somewhere between six and 10 platform investments in a fund. If one goes bad, that's not good at all. And so to me, we can't have zeros unlike venture where you put in a fortunate and invest in a Facebook, and that can be a thousand to one, whatever it be. And the private equity industry, in the microcap sector, are really, really good outcome is four or five times your money. You can't afford a zero. That makes your average comes two and a half or so, or whatever it may be. To me, it's not acceptable to have a zero. We try and mitigate all those things. And unlike in venture where you're not in control in our industry, only do control investing, right? And so my buyouts, if it isn't going well, it's on us to make changes. And that is whether it's management, others known another acquisition. One other thing that's been a little bit of not a secret to our success, but I think it's increased.”
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
“Luck, and that is industry expertise focused discipline of process. You're only as good as your last investment and you're only as good as what you did yesterday. And so to me, it's all about process. And investor psychology, there's going to be good days and bad days. Literally, if you come home from work and everything went well, you aren't trying hard enough. We're going to goals-oriented firm. And I tell our guys, we were Green Yellow Red Firm. Green, you got to yellow part of the way red the dent. And if all your goals are green, you try hard enough. You didn't stretch yourself far enough. And so in my view, I want my investors. My partners, executives, to make mistakes, but no mistakes that kill you. So you have to have a balance. And so on like the things that haven't gone as well.”
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 first of all, I view our role as short capital. Like, we're investors, but I think we're also kind of company builders. We are operators. And so I think we kind of help make some of our own success. Look, there's going to be good and bad luck. But I think you try and stack the deck in your favor and have many things that can go right that if all of them go right, it'll home run. If a few of them go right, you do pretty well. And if they all go wrong, you know, you miss out. And that to me starts with the industry. I think a lot of people only know about investing. I think Warren Buffett is my favorite investors and I trust a lot of things he says. And there's a quote he always says this always rings my mind. When a great management team meets a bad industry, the industry maintains reputation. That always sticks with me. You know, you have to understand the industry. If you go into the publishing business right now, I don't care if your Jack Welchner's prime, you're probably not going to end up having a bunch of success. So you have to pick out the right to pick your spot. I think that is less.”
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
“One moment was lucky, but the whole entire process was hard work. And so I really believe that more often than not, you do the process right. You follow all the way. You won't always end up with the luck or the opportunity at the end. But I'm confident of this if you don't do it, right? The odds of that success are dramatically lower. I'm a big person. I'm playing the odds. How do I increase the odds of success? And you think about process and following through, the process is the hard work. And then that's how I think about it. So Mike did an amazing job sourcing Chris. Chris, can our first CEO, our first deal went for him. You know, it was $6 million deal, sold it for $50 million plus. But three years later, allows you to raise your first fund. That sort of stuff is luck and hard work, and it's hard to separate in certain moments. But I think that the best investors have a little bit of both.”
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 I call my dad a lot. My dad used to sell me the harder you work, the luckier you get. And so like, how do you parse out hard work and luck? And so in a vacuum, any moment made pure lucky. But I would argue it may be the product of hard work or vice versa. I'll give you an example. The very first platform we did in 2009, my partner Mike Cooper, Source, our CEO, as Amaz Chris York. Chris York is, I would say, a luminary in the home infusion industry, a very small niche of the world. Some may say that was lucky. You got a hold of Chris York, who was an industry luminary who was leaving his job that happily that week. He come at the right moment. That phone call was lucky. However, Mike, I know made hundreds of phone calls in that industry to learn who that person was, but to make other people and did 10,000 steps before then. And so in that moment came in time, he's prepared. He knew the industry. That guy was interested. And that phone call was lucky, but I would say that was a byproduct of hard work. Many, many steps and the 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
“41 41. So I got married when I just turned 40. My wife's eight years younger than me. I had a chance to like there was, I started short cat pull when I was 31 and I do believe one of our competitive advantages was early on my partners were then 28 27 and 29 one of them was married and other three of us were not married and we were routinely in the office till seven, eight, nine, ten o'clock at night it was normal course. It was the behavior of the organization look it's important to be good for my kids pushing their games going to schools at 34 I wasn't doing that because I didn't have kids so there is an advantage of there's probably disadvantage as well I'm now coaching their four year old baseball league I'm the older dad most of their dads are 35 and I'm 45 right so there's a there's a trade-offs of course but I view that everything life's a balance and trade-off and if there's a right way to do it someone write a book and everyone would follow it there's no right way you got to figure out what's right for you and for your family”
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 40, largely because it took a long time for Groble to Like Me. Those first 25 years or so of my life, I was heads down. I was working my tail off. And then the time for balance, the time for hustle, but the mindset of only work isn't right. I think the mindset you only play is right either. I think you have to know when to turn on and off and ebbs and flows.”
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 you reflect on that? I think everything life's a balance. Like the last thing I want to do is die too early. That's for the first thing. And so to me, you have to invest in your health and you have to invest in like a balance, which is kind of incongruous what people tell you in the world of what we do. Like work all hours a day, like hustle through everything. I think out your health, you have nothing. And like, you have to balance. So like to me, it's like I have a primary care doctor. I do my school regular physicals twice a year, trying to proactive steps on testing. You try and do all the right things, but there's luck and there's genics, right? You have to live your life to the fullest. But to me, my grandfather died of a heart attack at 56. So I'm very aware of heart issues. And so like I'm proactive on heart stuff, my dad is as well. A way I think about my job is to be here for my kids until they're, you know, 30, 40, 50, 60 years old and beyond. And so how do you balance that with building an organization? That's what I think you have to do. And by the way, there's time for everything. I didn't get married.”
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
“Doing quite well in 2009. Before that, though, it was 30, 40 employees. I think before 2009, it was maybe 10th or 20th largest mortgage player in the state of Michigan. And after 2009, it went to a national player because so many players dropped out. I think that was foresight and judgment and also a lesson of business. Don't do things you don't understand if everyone's doing it. It doesn't make a difference. You do what you understand. If you understand it well, I think you can execute on it. And so my dad never understood subprime mortgages. Never did it. He only did FHA government back loans. And when the world turned, he was kind of the last one standing. So the business kind of took off then. My brother was running it. And so I'm watching my dad be an entrepreneur, I would say, between a restaurant. I remember being 12 years old Saturday night entertainment. My dad would take us 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
“A ton from him, but those early days of that mortgage company, it was more of a, I would say, ancillary part of his work life than it was, I would say, his main business. In 2009, that changed a whole bunch. In 2009, I used to use, I used the analogy, have you seen the movie Forrest Gump and the movie where I forgot the guy's name, the captain, they go out into the ocean during the hurricane and they come back and all the ships are destroyed and they're the one ship that's still available and that was my dad in the subprime market. And if you asked him why in 2005, 2010, they never did a subprime loan. And he said, I understand it. And I would say, I don't understand why we're loaning somebody X dollars with no income statements, no information on them. He goes, I don't understand it. So his business was relatively small in that moment of time. But when the whole world crashed because every subfine loan got destroyed, he was the last one left. See no buybacks. And so 2009, the business kind of blew up. So let me make for me a few hundred thousand dollars a year to do.”
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
“30 employees, not Mormon's company. So I was eight years old when we founded the Mortvage Company. They founded it because one of his best friends was a mortgage broker and needed a partner and they're 50 partners and his best friend ended up having a family issue and moved away and he was left with a business. It was relatively small. And so but my dad's framework for that business was, I think it was very simple. He never had an office in that building. He's always worked at his law firm. He advances himself as a lawyer. He never spent a lot of time in that business. It was more about, I think, hiring the right people and treating them right. And it's also, I think, never took venture capital money. It was just his own money as brick by brick. And I think he really thought about in a way of, I'm going to do something for the long term, but he was not trying to build a huge company. He was trying to basically service some customers and make a little money. And I think if you talk to them to this day, the first 20 years of business, he would call his side hustle. Like he's a lawyer. And it was a way to feed business to his law firm. I think is how everybody think about it. But I've learned.”
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 So, yes and no. My grandfather came over on the boat from Turkey when he was eight, and my grandfather settled in New York. And then when he was in his middle early 20s, moved to Detroit. And so I'm born and raised in Detroit. My dad father owned two small diners on the edge of Wayne State University's campus, like literally like a diner for college kids at Burgers for lunch, but maybe. Unfortunately, my father's father, my grandfather, I never met passed away when I was 16 years old. I think my dad's framework of business and mindset was really framed by watching his dad work his tal off, but also pass away to young. And I think it's something that drove him. And also I think framed how he wanted to be a father. And so he asked me when I was 18 years old, tell me what your dad does, the mortgage industry be the last empire I say. As a lawyer, first and foremost, he's an entrepreneur. He started a restaurant shane. He started a potato chip company. Started an alarm company and a mortgage company, which ended up being obviously the Enfloyd Sides business. But when I was in high school, there's probably...”
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 could not be more excited to be here. Thanks for the opportunity to show a little more about shore capital and those are my favorite favorite people out there and some of the most successful investors. And so have the opportunity to share the shore capital story and what we're building in the future. I always love to talk about 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
“IB private equity in the following way. We're a huge flashlight. Walk into a room that may be dark. I'm shine the light everywhere in the corners and the crevices. What I found is those who are really good at their job. I like, shine it here. Like, look at me. No one's recognized me what I've been doing for the last year. I'm performing at a really high level. They're super excited. And those who are maybe less than good at their job curl up and kind of hide from that light. And we try and shine light everywhere. And so when we eventually exit our investment, the light's on the room and everyone can see everything. Transparency and data. This is 20 VC with me.”
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