YouSaid · the spoken record

Mark Jenkins

lines on the record: 78
first: 2022-04-21
most recent: 2022-04-21
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Yeah, you know, I'd say the biggest thing that I've come to realize is that change is constant. Change is constant. And I think in investing, we sometimes fall back on history. We fall back on what we know. But change is constant. Some people say it's circular, but I think it evolves as opposed to circular. And I think that change has increased dramatically in the 30 years that I've been involved in finance and investing. And if I had thought about that, I think from an investing standpoint, in some ways it's influenced how I think about investing today compared to 30 years ago, for sure.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I get this question a lot from junior people. They ask what should I do? And I think it applies to a lot of things, not just investment management. And I think the biggest thing you can do is to be obsessively curious. Because if you're impassionate, if you're not curious about things, like I don't know how you learn, frankly. And so be early on you have the ability to be curious in an uninhibited way because nobody expects you to know anything. I mean, you might be brilliant. You might have come out of great school, but nobody really expects you to know much. And so that's a great time to be curious about what you're interested in, right? So if it's finance, be curious about that. If it's investing, be curious about that and ask a lot of questions because that ultimately is what's going to drive you through.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“I think the best ones, if you want to read, if you just say, I want to read one, the definitive ones are by Roy Jenkins. No relation to me. And then Andrew Roberts wrote one recently, and I think that one's a pretty good one. It has some new material and really shows a flawed individual for sure.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Know the blackouts of 1977 cross all five boroughs. I mean, it's fascinating. So I really enjoy those things. And then I love reading about people who are flawed but have achieved, you know, in history great things. So Churchill, for instance, I read the Robert Carroll book recently, The Power Broker, which is like massive, but like, you know, power corrupts, absolute power corrupts, absolutely. And now I'm in the process of reading Party in the Waters, which is at Taylor Branch book on Martin Luther King, sort of in the early civil rights movement. So I like a lot of different things.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“On somebody who was so prolific in a very short period of time and had such a large, profound impact on America, I think that's fascinating. Grant, I mean, you know, Churnow, another one there where there's a flawed man who had his moment in history, you know, fantastic. And then, you know, just recently I read, Ladies and gentlemen, the Bronx is burning, which is politics, sports, and sort of merging New York in 1977, where you had the Yankees, Reggie Jackson. You had the Meror race, and you had...”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“What are you reading right now? You know what? Books are like music to me. I listen to everything. Right. So I listen to rap. I listen to 90s rock. I listen to pop. I listen to jazz. I listen to classical and country. And like, you can't really pin me down. And books are kind of the same. I go through periods where I want to understand something. So, some of the grades I was just thinking about before I came in here were, you know, as we move to the US, I didn't do a lot of US history, so I read a lot about US history. So some of the ones that stand out, Team of Rivals. Doris Goodwin, fantastic. Ron Chernau has got some great books. I read Alexander Hamilton before it became like a play. I thought, how do you make a play out of that? But like fantastic book.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Current boss, Kucon Lee, he kind of found me at a time where I was really considering starting my own fund. And somehow found me just before I had left to start my own fund and convinced me to come to Carlisle and really gave me, again, the Laneway, the opportunity to build what we've done so far. And we've got a lot more to do. But I think they're facilitators in many respects. They've listened to what I've had to say and given me some guidance, but more or less have cleared the lanes to allow me to do what I think is the right thing to get the business going.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Replay back what you said to that person or how you acted in that situation. That had a profound impact on how I operate today. And I give Tim a lot of credit for things that I've been able to do in my career. The other one are really David Dennison, who's a former CEO of CPPIB and Mark Wiseman, who became the CEO of CPPIB. And they stood behind me at a time when I started a private credit business during the financial crisis of 0809. They bought into that long-term strategy that I had, not dissimilar to the platform approach we have here today at Carlisle. And at a time where we're going through the deepest, what we thought was the deepest, darkest crisis we'd ever seen, they got behind me and rallied board support to get that program going and really gave me the lane way to do what turned out to be a very successful program for CPPIB. And then finally, I would say, you know,”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I would call them mentor facilitators, if you will, which were people who not so much mentored me, but pushed me in certain directions. And I'd say the one, there's probably three of them. And the one who I initially think of as a guy Tim Hodson. And him and I worked at Goldman Sachs. He was the CEO of Goldman Sachs, Canada for a while. He's now the chair of Ontario, a Tydro One, I believe, called the utility up in Canada. Now he's also on the board of PSP, which is the sister pension plan to CPPIB. So he's a great guy. And he really pushed me to do different things. He actually uses the person who encouraged me to go to CPPIB. But I think the biggest thing he did for me is give me perspective. And I think that's, especially when you're younger, I think you need that. And perspective and some empathy, i.e. put yourself in somebody else's shoes.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Wow. Five seasons fantastic. And the other one, and listen, even though I'm Canadian and I did take French for 12 years, I'm really not proficient at it. So I do, I watch these with subtitles. Call my agent.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“We ask all of our guests. All Streaming. Okay. Well, the two things that I, one I finished and one I'm still watching one is called The Bureau or Le Bureau des Legend, which is its subtitles, but it's French and it's really about the French intelligence agency. And their operations in the Middle East and Northern Africa. And it's fascinating because of, you know, really what you do is you have these relatively normal people leading these clandestine lives to affect change and all the complications that go with it. And it's complicated, but it's subtle. It's really worth watching. It's probably the best thing I have watched. A long time”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, I don't so much define it as to how much they have, but as how big of a ticket. And for now, we go all the way down to where I think we can take tickets that are as low as $10,000. Really? Yeah. Yeah.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Sure, I would say that we have all the traditional institutional investors and anybody else is going to have. You're going to have your traditional state pension plans. You're going to have your non-Canadian or sorry, non-US pension plans, whether that be in Canada or Europe or Australia. You're going to have sovereign wealth funds, which are a big component of that. And you're going to have insurance companies. I mean, those would be the major institutional side. Then we've got high net worth.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and I think look, culturally, as an organization, I mean, we didn't talk about this, but culture matters a lot. And culture matters a lot to me. I mean, I left a great organization with a great culture, and I'm not at the beginning of my career, so I need to go to a place where I thought the culture is going to fit for me. And Carlisle is very collaborative, very supportive environment, is known as a good partner in the marketplace. That's worth a lot. So when you're talking to a management team, you bring that with you. They know if they're dealing with Carlisle global credit or Carlisle private equity, they're getting that same partnership approach. And that's extremely valuable, especially when you're in competition for assets.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, we're like, think of us as solution providers, right? Like, I mean, if you're a management team and you're looking to expand, you either sell control equity. You look for some sort of structured solution. You come to Carlisle, you can go to a bio group who does control equity, or you can come to our group and we will do some sort of structured solution that will help you achieve your growth objectives. As a combination, that's a powerful outcome because you get all the benefits of both those groups in one package to help those teams grow.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“The hierarchy Correct. Correct. You know, like through the capital structure, we've created it at a much lower area in the capital structure. The other thing I would say, what makes us, gives us an advantage there to a great degree is being integrated with Carlisle as a global platform. And I think that's the one thing that really turns the wheel for our platform today is that connectivity with Carlisle, who's been in business for over 30 years, owning companies, realizing on them on a global basis boots on the ground, not only in the US, Europe, but Asia in particular, which is a great growth area, I think, for us, and having that experience and experience with management teams, countries, and companies, you know, it's unbelievable how much origination it helps us with, but also when we're making an investment, the different points of intersection that we can get from our colleagues in the private equity side.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, it could be minority interest position. We've got one where we have a minority interest position where we have some downside protection in terms of excess collateral in the shares. So that to me is, you know, we've limited a bit of our upside, but we've also taken a big cushion on the downside. It could be pref equity that's deeper into the capital structure than we normally would do because of some views that we have on the company.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Mid teen type range, but higher return perhaps with some higher risk, of course, but where we're working with really good companies and really good management teams where we have really good governance structures, but we don't have control.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“I liken it to private equity light. I mean, really, if you do true distress for control where you're going to take over a company, you really have to have a post acquisition value creation plan, which is really private equity. You've got to, you know, run the board. You've got to oversee the management team and you got to create value. And look, I think our private equity guys do that really, really well. I think credit people are okay at it. But I think we're probably more interested in what we've been doing lately, which I would call structured equity, minority equity opportunities, which give you kind of that higher return, something that I wouldn't call opportunistic where we're in that.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I think distress has gone through an evolution. I believe if you think about distress 20 years ago, there's fewer people doing it. I think that the efficiency was a less efficient market, fewer participants made a less efficient, so there were bigger outsized excess returns to make. I think today, given there's a larger number of participants with a lot of cash, it makes it less efficient. And it makes it less scalable, quite frankly. There's a lot of crowding around the larger opportunities. And everybody piles into them. And then if you look at the smaller opportunities, they're just really hard.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, $3 billion. And it's a business we want to grow. So there's a team there that's well known to us, an asset base that's well known to us. Roger Cozy, who we hired, actually used to work at iStar and helped develop that original portfolio. So we're quite excited about that and our ability to grow that over time. And as everything we try to grow into, we want it to be a $10 billion plus type business because that gives us a scale advantage.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I think in real estate right now, what is really, really interesting to us is, and it was as a result of some of the dislocation we're seeing, is really in the opportunistic real estate space. So where we're providing mezzanine and sort of completion capital, if you will. You know, the banks are very efficient further up the capital stack and can provide that, but it's really that completion capital. And we're seeing that in very unique and interesting assets. I think the iStar asset that we just announced several weeks ago is interesting to us because of the triple net lease component. It really is underlying credit. And it's a very diversified portfolio between commercial office and entertainment.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Rails transergy transportation. Pipelines could be transmission lines, it could be toll roads. I mean, it has various natures, but anything where there is an overriding charge to use that asset. That is disassociated with the pricer volume that's going through it.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Regulatory charge that allows you to have more confidence in the stability of the return on that asset than you would in a normal corporate asset. And as a result of that, they can also be longer duration. A lot of insurance companies, for instance, who are trying to match duration, look at these assets and see them as being very valuable and a diversifier in your overall corporate portfolio.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“But then with some of the financial regulations, it limited how long that duration could be. So my thought was always going to be that the capital markets would become a more relevant part of infrastructure finance. And that was kind of the thesis. So when I came to Carlisle, what I started with on day one is I wanted to find a team that could help build out that business. And we found a very experienced individual and who'd worked at a number of places on the infrastructure side, most recently BlackRock. And he had been very successful and built up a very, very large portfolio. So we hired him and we've been building out this business. And I can see this being a very substantial part of our overall portfolio going forward. 10, 15% of our overall portfolio. And there's such a great need for it. So when you think about what does that mean specifically, I mean, there are really, I would say assets that have an underlying rate or”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, well, infrastructure as a strategy kind of came to me really from my experience at CPPIB where when I was running the infrastructure equity business, I looked at where the credit financing was coming from, even though we're putting equity in. And a lot of the deals where we would put 20 to 25% equity in required massive amounts of credit. Now banks generally would provide a lot of that. U.S. banks don't provide anything to infrastructure. Very little. It's just not something because of the long-term nature of it. Canadian banks do a decent amount, but guess what? There's not that many Canadian banks. And then the Europeans.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Two to three times You know 2.6 billion plus of just financing there alone. And that's just in the buyout market. That doesn't include any corporate activity that doesn't include other special situations that we just don't even account for in that number. So I think the growth is really driven by the fact that the third thing that we didn't talk about is the number of public companies today is about half of what it was over 10 years ago. But I would say people are staying private for longer. And as a result of that, the need for our capital is greater than it probably was 10 or 15 years ago. So I think the tailwinds are there for the next five plus years, for sure.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“The way I maybe think about it in terms of growth is there's over 1.3 trillion of dry powder and private equity today. And it's probably much higher than that. And there's a lot of people out there raising money. If you think about how much financing that will drive, that drives at least another.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Correct. And I think that is what you're seeing. And that's what's driving it right now. I mean, the conversations we have with institutional investors, with consultants today is very much in that vein, which is you can afford to have this much of illiquidity in your portfolio. You should tuck that away and you should pick up that illiquidity premium. And there's other, you know, all the academic studies say there's illiquidity, there's complexity, and there's a lot of other things in there. But, you know, when you can pick up 100 to 500 basis points, which is kind of the range, that's pretty attractive.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“If you can layer on top of that alternatives, which give you a premium and you can bear whether the volatility, then actually you're probably going to return more for your beneficiaries than if you just stayed in public assets.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Why is it these really smart institutional investors, right? They're not, you know, they are smart people who are investing money on behalf of a lot of people rotating into alternatives. And the singular reason is because they're looking for a pickup in a liquidity that they're getting from being in that asset class. And my prior employer, CPPIB, they recognize because of the long live of the asset base for them, which is they looked 75 years forward, you could be 100% in equities if you wanted to be. Now, the volatility of that, I don't think stakeholders could handle, but today their allocation is 85% to equities.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, he didn't work out well. He didn't buy him and he's mad at me to this day. So, anyway, but, you know, you go back to this and you say to yourself.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“How do I get 6%? I remember off topic, but I remember I was talking to a guy who asked me, said, you know, I'm looking at these Ontario Zero coupons at like 11%. What do you think? I said, oh, I think they're going to go higher. I would buy them.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Private equity, real estate, credit infrastructure. And that trend is just going to continue as we continue to be in this lower rate environment. I know rates are going up, but like historically, they're still very low.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and I think here's the good thing about the institutional investor writ large is that they generally are pretty thoughtful and long-term thinkers. I mean, I think that sometimes us on the manager side think we have all the answers. But I would say they're pretty smart people that are managing broad diversified portfolios. And I believe what they recognize is as a fiduciary, you can't, you know, hope isn't a strategy. I hope I keep getting the same returns in public equities. That's a great thought, but I don't know if that delivers. And so what people have been doing is there is a trend, demonstrable trend of putting some of your cash if you can be illiquid into alternatives.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, 13 plus, something like that. Well, where is your long-term forecast for equity? I mean, a lot of people would probably tell you public equity long-term forecast is probably in the six to seven percent range, maybe lower. I don't know. You do the math on that over a 10-year horizon. It's very hard to get 7%.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Give you a step back and think about it from the average institutional investor and what they're trying to achieve. And, you know, it'll vary, but let's use this as a starting point. Let's assume that on average, most institutional investor over the long term is trying to achieve 7% for their beneficiaries. In a call it a negative real rate environment with equity returns have been, I think, 15% over since 09. Roughly, if you get me”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, you're picking that asset you're going to put in there. That's the micro. There's portfolio construction, making sure you have a well-balanced portfolio that's not highly correlated because that's not the exposure our investors are looking for. And then you tilt those exposures depending on some conviction you may have. I think in this environment, the first two are really the most important. Tilts can wipe out the first two very easily. So we tend not to have tilts. We tend to have well-balanced portfolios that we believe will weather through. Volatility in the market, which we think we're going to see more of in the next 12 to 24 months.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it's like anything, right? You want to have from the top level the platform just really opens up a very broad funnel for opportunities. And as a result of that, when you're in the market, your scaled, you're known in the market, you get a lot of opportunities and they're coming in, you know, I say left, right, and center, but it feels like that sometimes. What we're looking to do is to pull together the most high quality diverse portfolios that we can that we believe will weather through cycles. And so as a result of that, we do have to be very selective as to what we're going to put in there. And we also have to be thoughtful about this exposures, right? When you think about portfolio construction, there's kind of three things, right? There's security selection.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Pandemic and pre pandemic, we were in a pretty well priced market, we thought, where it was tough sledding for opportunities and very competitive and now companies that would typically have access to the capital markets who may have a more complicated story. You get one speed bump in the market and some negative sentiment. There's still good companies in the long term. We're allowed, you know, we're allowed to kind of go in and do the work on a more complex situation and do that work that the capital markets won't do because they don't have access to that information and it creates opportunity for us. And so we're, I don't want to say excited, but we've been looking for some volatility in the marketplace for quite some time and we're starting to see it.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, twofold. One is, I think, that operating platform I talked about is in place. And so once you put the operating structure in place from an investment and origination perspective, I mean, it really does allow you to scale and be much more efficient. So that's point one. We have multiple avenues where we raise capital. We've got CTAC, which is a retail product that goes cuts across our entire platform. And that is very attractive for investors where they're getting a very current cash dividend in high single digits. And that feeds into our business. But then you've got these new verticals that you and I've talked about on the real asset side, which are growing probably faster than I would have thought because people are finding that extremely interesting from a portfolio construction perspective. But then lastly, on the opportunity side, the volatility is a good thing for us because as you and I talked about earlier, our ability to swing across a platform and take advantage of opportunities, volatility is actually creates vast opportunity that was difficult, I would say pre-pandemic.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Those veins that we think will expand infrastructure, real estate credit, aviation, corporate credit as a whole, obviously, liquid credit. Today, if you look at the leverage loan market, it's $1.5 trillion. It was much less, it's three to four times what it was in 2008, 2009. So we're trying to stay in those large markets where there's scale and we can scale along with it.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“But if you think about it's a very small part of Global Was that you're absolutely right, but if you think about the participants Even the largest participants aren't greater than 150 to 200 billion. I mean, that sounds like a lot I know, but in the context of that, there's not like a clustering at the very top yet. So I think, you know, we're going to grow with at least the market. Obviously, you know, stakeholders would like us to grow beyond that. I think if we do that in a very thoughtful, deliberate way, that's fine. The other thing we pursued, which is slightly different than maybe some of our peers, is we do have that three-pillar approach across multiple strategies. So any of those strategies in and of themselves can scale to 10 or 20 billion, but if you took that in totality across the platform, that adds up to a lot of money to manage, right? And so what we've really purposely tried to do is say where”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I don't know if I can predict the ceiling, but I can tell you that our forecast and belief is that it's growing at at least 10 to 12% CAGR per year from a $1.1 trillion base today.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“But what it also means is when we talk to our investors, they need to invest capital. Like that doesn't stop just because the markets are volatile and people are rotating more into private credit, as you and I discussed earlier. And so we're seeing that growth. So we're trying to balance our growth versus what the opportunity set is. And the one thing I had learned from my prior life is that, you know, there is a certain growth trajectory that if you get beyond that, and I almost had infinite capital at my prior job, but do you have infinite opportunities? And so you have to continually build the team and the platform that allows you to scale into the opportunity set to be able to prosecute it. If you can't prosecute it, then you may end up in not a good place for your investors. And so we're very thoughtful about that. But the programs that we built out have scaled mostly because we've been able to do those larger size transactions and control them on the front end. And I think we'll continue to.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“But the most important thing, and I said this before, is that we're there to deliver an expected exposure into somebody's portfolio, consistent and persistent through time. And that is something you demonstrate over time. And so far, I think with the team that's there, which is excellent, by the way, they have been delivering those returns over the past six years, even through the pandemic, which is really important. I think the next 12 to 24 months, you know, we're going to have some.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Why does scale matter? Well, scale matters because it allows you to take advantage of the best opportunities on a global basis. So we want to be scalable so that we can do any transaction that we want to do globally, period. And that was the goal of getting to scale $70 billion, 80 billion, 90 billion. Like you're in the snack bracket where you can do any transaction you want and being very selective. What that also leads to is that each successor fund more people want to participate. So that is an ongoing growth trajectory that we just deal with. If you have poor performance, well, guess what? People don't want to participate in your funds. So Farch would in the six years that I've been involved. Our performance has been, I think, very good.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you can't raise what I've learned is you can't raise money without performance. We'll figure one begets the other. I would say that what we're want to do is I think the thing that's really important as we build up the platform is a lot of people say.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Right, so if you don't have a platform that allows you to pivot, you can't take advantage of that. So, what we've done deliberately is have this cross platform approach both in product set expertise, but geographically, so that we can swing to where those opportunities are. So for instance, in the past, I'd say six months, we've seen a lot of opportunities coming out of Europe because the U.S. capital markets tend to heal themselves a lot quicker and stabilize quicker. Europe, because of the multiple different jurisdictions, tends to take a little bit longer. We're looking into Asia. We see opportunities there evolving. If you don't have a broad platform that's connected globally, it's very hard to take advantage of those opportunities to swing your capital to where those opportunities are.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source
“Across the platform in direct lending and opportunistic credit, not really any distress, doing really regular way performing deals. And when the market dislocated in April, March and April, it felt like 0809 again, and we were able to go immediately to the secondary market and deploying the leverage low market, where things were trading off dramatically. So chartered communications, trading at 72. I didn't need to be a genius when I looked at the market cap of chart communications trading at 72 to recognize I'm probably going to get my money back.”
2022-04-21 · Masters in Business · Mark Jenkins on Leveraged Finance and Pension Plans · IDENTIFIED FROM THE TRANSCRIPT · source