YouSaid · the spoken record

Sunaina Sinha

lines on the record: 68
first: 2025-01-02
most recent: 2025-01-02
sittings or episodes: 1
sources: podcast

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“What I know now that I wish I knew back then is that the market will change and adapt even faster and more furiously than you ever thought possible. Did we see the trillions of dollars in the private equity primary market? No. Did I see the secondary's market growing to one hundred fifty billion on its way to a trillion dollars itself? No. So the growth will far outpace your wildest dreams both in your own industry but also in the finance world around you. Think about twenty years ago had you and I ever envisioned the Mag seven and the trends we're seeing in technology and how markets would be at the levels they are today, not even in our wildest dreams. So as I think about the next 20 years, I keep that in mind.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“My number one piece of advice to anybody entering finance is play the long game. Too many young people, I'm sure that you come across Barry, that I come across, are all about the short-term hits and the short-term wins. If it doesn't work out, they move on and they try to make it work somewhere else and they move on again. A rolling stone gathers no moss, especially in finance it's a world that ends up being one maybe two degrees of separation. It's a world in which relationships still really, really matter. And you have to cultivate them thinking about a ten, twenty year career in mind, not what can this person do for me today or this week or this month or immediately. And that is, I think, one of the most profound pieces of advice I leaned into early in my career, looking at every human being as a long-term investment of time and energy, not looking for quick paybacks. Same with investing in private equity, but certainly true when it comes to people.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Terrible. Why? We've just been coming to all these riches. The mind has a reset point that brings you down into what you're used to feeling and the kind of mental space you're used to inhabiting. How do you break out of that and increase your upper limits so you can continue to scale in your life and in your career, in your personal life and so on? Fascinating quick read. Big leap by Gay Hendrix. Highly recommended. I'm reading a book right now. I'm only about 30 pages into it called The Mind Matters. Back to my thematic about mental and understanding how the mind works and mental health. Mind matters is by a professor who talks about how the mind can often visualize things into reality. So you hear this phrase called manifestational lot. This is a neuroscientist studying what that means in terms of how the brain fires to try to make things into reality for us. Fascinating thirty-five pages or so so far.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“I love the book The Big Leap by Grey Hendrix. Everyone should pick it up. It's a quick read. It talks about upper limits, how we set upper limits unconsciously in our lives. He starts off with his great research about how most lottery winners after five years, most of them end up being broken. Really unhappy”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Very cool I am lucky enough to have been picked up by a wonderful professor at Stanford called Professor Tom Kosnick. Tom took me on at the tenderage of nineteen oh twenty and took me under his wing, made me a research fellow. He's the one that enabled me to guest lecture at Stanford. I wrote case studies that are still used in the teaching curriculum there under him. And he's been a tremendous mentor and supporter very early on and forever thankful to him for his coaching and mentorship over the years. Similarly is a wonderful professor at Stanford called Professor Tina Selig. She gave me one of the best pieces of advice I think any young career professional but certainly a woman could have received. She said to me you can have it all just not at once.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, he loves it. He talks about health, wellness protocols. Super fascinating. I try to dive into his stuff as much as I possibly can. They're long, though, so sometimes it takes a few iterations. I'll often listen to the news via podcasts, whether it's Bloomberg, CNBC. That's often part of my regular rota. And more than any of the others, I'm a huge believer in preventative mental health. I meditate every day. Go to an annual meditation course. So I'm often listening to talks around meditation, around mental health, how do you deepen your meditation practice. That's a huge part of my repository as well.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Watching, I have to say, I tend to watch in limited doses these days given life and travel and children. But I love the diplomat on Netflix. Fascinating again, geopolitics. I'm absolutely interested in the new spy thriller that Paramount has out called the agency. I've watched a couple of episodes. It's trending well so far. I love listening to a number of podcasts. My go-to list will be Andrew Human. Love is a Stanford professor. Right.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“I love tasting wine, and so I have joined a wine club in London, which I love. I used to take part in blind wine tasting competitions, less so now. So any opportunity I can to enjoy and experiment and try new wines, I do so. You're absolutely right. Europe is a bastion of winemaking. And so if I go to board meetings in Germany or if I head off for a weekend in Spain, it's all about diving deep into the local wine. I recently went for dinner with about 10, 12 friends to a lovely restaurant in near Barcelona and Spain. And there was a wine-tasting core pairing there for all Spanish wines. And we did that together and learned more about Spanish wines than we ever thought we would know. That's the kind of thing that I do now as a passion and hobby.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't think I've crammed that hard for anything in my life. It was a blind tasting of ten wines. It had a service test, had theory papers. It was incredibly intense, but lo and behold I ended up passing, and here we are. It's a lifetime qualification. I still have it with pride and honor, although I don't use it as much anymore. Now being a mom of three.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“They shirted, it was voted Stanford's most popular class. It would often shut down the Stanford systems during sign-up day. And even after I graduated from Stanford, I kept teaching that wine class for close to three years after graduation. When I went to Harvard for my MBA, Harvard College, one of the houses their residential houses there asked me to come teach a wine seminar for them, which I did, which was again a roaring success. And then I moved to London. And when I moved to London, I said, well, I'm not teaching anything here. I guess I'm going to lose all this wine knowledge. Let me put it to the test. And I decided to take the court of Master Somelier's test. It was a three-day test.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“And guess who my teachers were? I would get guest speakers and winemakers from Napa and Sonoma to come and I might pitch to them was, hey, you get to talk to and teach wine to an impressionable young audience that can go on and become loyal customers. They loved it. They would come down and do a talk on wine and we'd do a small wine taste.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“So I started teaching a wine class at Stanford for one unit of credit. In my junior year, I was part of living in the French house there where I was a member of the staff and I had to teach a class that had something to do with France. I said France and wine, that makes sense.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“It's everything around it. You can And one of my clients said, Listen, no one gets fired for hiring a Fortune 300. Now you are part of one. And it changed our game overnight. Overnight, we started assigning 10, 20, 30 billion dollar funds, and that was incredibly exciting. So do what we love to do, but to do it for some of the biggest players in the markets is very exciting. The second one is that we were able to figure out an avail of and offer the synergy with our private wealth partners at Raymond James very quickly. And for that, I'll always be thankful to the leadership of the firm because they saw the opportunity and they made that happen. And that's been a huge value add to our clients.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Barry, there'd be two things I'd point to. The first is almost overnight the largest private equity funds in the world started hiring us. Same team, same people, same services, all that change was the logo of the boutique got replaced with the logo of a Fortune three hundred”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“And I found the same thing in the capital markets business, and it's been actually one of my upside surprises of joining Raymond James on the cultural side. You wouldn't know it if you looked at the paper announcement that the Fortune 300 was buying a small boutique”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“On paper, it is a culture shock. But during diligence, Raymond James approached me with an offer to acquire the business, and we spent months getting to know each other to ensure that the culture fit would work because if that didn't work, the key asset you were buying, which is talent in financial services, was going to walk. And so my boss now, who is the person who acquired Sabile Jim Bun, and I spent a lot of time getting to know each other and ensuring that him and I could work together well and effectively and that the cultural alignment and entrepreneurial DNA would stay intact when they acquired the firm. Now I've been part of Raymond James three and a half years I can safely say that the honeymoon's over but also say that the culture of it has been a real hit. Raymond James has a very affable community oriented, very low ego type of culture in general.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“How do you do that? That's an interesting playbook, especially in the political environment we're in, and private equity is very well positioned to figure that out. The third thing we've already touched on, which is private wealth is a game change for private markets, is a game change in terms of the capital inflows that's coming in, and we're still at the early innings of that. It will change private equity for good. And I think it's very exciting to see that gather pace and to be at the forefront of that at Raymond James, which is one of the largest platforms, global private wealth platforms in the world.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that as you see the increase in regulation around public market listings, more and more companies around the world, US and Europe and beyond want to remain private because they see the benefits of being under private equity ownership, the value add, their access to resources, the ability to have capital at hand to grow faster is a very valuable playbook. So I expect that the private equity industry will continue to grow at the very rapid expansion rate that they've enjoyed. The other point I'll say is that this is a really interesting return driving environment for private equity. Valuations in the private markets remain very sensible and there's a great arbitrage between US and Europe, the US Europe divergence as they're calling it these days is real. So when it comes to saying, hey, I'm going to globalize my company's revenue chain.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, historical average of 24%. The institutional investor does not like that math. They like to have their cash backed come back to normal levels because that's the cashback they then recycle into new invest”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“You picked a really interesting analogy, and I like it because that is what is happening. And now we're at the point where a lot of companies that were bought in the 2021 era need to be sold. And some of our clients have been prolific at returning that capital back, in fact, have done a great job in 2024 of exiting those businesses and returning cash back to investors. Others not so much. Others need to pick up the speed on that. And as an industry, if you look at the entirety of the industry, let me give you some numbers. The average returns that investors get, cash back that they're used to expecting, distributions as a percentage of the total value held in private equities generally around 24%. In twenty three, that number dipped to only eleven percent. So far in twenty four, we're back to about 14%, but we're not back to 24.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Private equity, where institutions have pulled back private Walter stepped in, we had that discussion, but the institutional investor has pulled back the average pension plan, the average endowment, the average foundation, the average insurance company, if they used to do a hundred dollars per fund investment last time around, this go around they are seventy-five to eighty percent of that only. So, for them to come back to the hundred dollars, we need the private equity industry to sell companies and return cash back to them. It's getting better. 2024 is better MRA volumes than 2023 was, but is it back to what it was in 21? No, sir, we're not back there yet.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Anna, a very ugly public market. So at that point, institutional investors stopped seeing very much cash back from their private equity portfolios. They were still having to pay into those capital calls that were being made by their private equity clients because the contribution still kept coming in saying I want to do a new deal, I want to do an add-on, here's some management fees and expenses you need to fund. But the cash back froze. Now we're starting to come out of that now, but that math is still nowhere near where it needs to be, i.e. the private equity industry needs to return a lot more cash back to its investors. The capital markets need to open because some of the largest private equity funds you have out there need to list some of those businesses and we haven't seen the IPO window open US or Europe in the last year in a meaningful and sustainable way. We need all of that math to right in itself before institutional investors kind of come back to their normal levels of allocating.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“The one that's most salient that we track most closely, Barry, is the fact that because the math broke at the investor level in N22 early 23, we're still playing catch up on that. What does that even mean? It means that the exit activity, the MNA volumes, the ability to sell companies and return cash to institutional investors really slowed down from summer twenty two onwards as we had inflation as we had Ukraine, as we had some of the macro challenges, right?”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“That was in an Asian manager in 2013. But I would say the average discount these days for the best private equity fund managers do not trade at discounts. They traded at close to their net asset values. They trade close to par. But the average discount when it comes to the average buyout fund is somewhere in the 4% to 8% range for the average private equity buyout fund. If you hold venture, especially if it's got a lot of fintech in it these days. That's going at 30 to 50% discount because it's really hard to value that stuff. As you know,”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“This was, I'm going back to 2013, 2014, but there was a buyer at 8.5% of NAV of net asset value. Great, you have all the cushion in the world and you look like a genius when you do your markups the next quarter.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“You are absolutely right, Barry. It all comes down to the discount, and are they willing sellers, sellers at the price, there's always a price. I'll give you one anecdote, one fund interest we sold, traded at eight and a half cents on the dollar. Eight and a half. There was a seller who said get me any price I want out. I don't want to hold this anymore”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“That will yield me a higher return because I've made what I needed to make out of this portfolio. That's become programmatic amongst many institutional investors.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“So there was a dip in the secondary markets transacting volumes in 2023 in particular as rates were high and investors didn't know what impact that had on valuation. If you remember the first half of 2023, the world froze because you had Fed raising interest rates and all other central banks, you had Ukraine, Russia, you had Silicon Valley Bank, and then you had Credit Suisse. So everybody was deer in headlands going, what on earth is going on? Volumes came down that year in secondaries market as well as in M&A. Now those volumes have gone up. This year twenty twenty four will be another high watermark for the secondary's market in terms of transacted volumes. And that's because as the private markets grow, the need for liquidity and a liquidity solution over the period of that 10 to 15 year hold becomes all the more pertinent for both limited partners and general partners. So now regardless of what the rates are doing, you have investors saying, you know what, every year or every two years, I'm going to sell in the secondary's market and move that cash into more opportunistic situations or back into a program.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“10 to 15 points. If you are a mid market private equity house, you are returning 20% net IRRs. That's kind of what you have to show fund on fund. And that's interesting. That's why you're added to a portfolio. If you are a private debt strategy, obviously not private debt will be more like low teens type of numbers somewhere in the 10 to 13 percent net range. But even that is value add when you think about a debt strategy that, you know, because even in public market debts, you're not able to find that type of yield. So as rates come down, as money gets pushed out of T-bills, gets pushed out of money market accounts and starts to seek yields again, private markets become interesting to a lot of players.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, you're for sure you're going to get a if you're comparing to Sofra, you're definitely going to get a return normalization which did happen when rates were in 2223. Less deals got done because at higher rates private equity funds had a difficult time borrowing. The debt markets were shut. So deal values came down if you look at the M&A volumes at most of the major investment banks, including at Raymond James, volumes came down. Now they're on their way back up. But your point is a salient one. How does it impact returns? You have to be able to show if you're doing private equity buyouts, you've got to be able to show that you can do 15 points over for sofa, right?”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“A balanced portfolio I want to seek investments in folks who really know how to add value to businesses over a period of time. So they'll do that only in general partners who have a track record and that track record is often anywhere between fifty to twenty two twenty three percent net IRRs and that track record really matters so you have to be able to return money over the neutral rate otherwise you're not going to be viable even the best private credit funds will return high single digits or low teens type of returns which is very much a good diversifier and an addition to private wealth portfolios.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“There's no doubt that rates being low helped investors seek yield and seek alpha in different markets including in private markets, but also it helped private equity due deals, right? Leverage buyouts requires leverage and when rates were so low, leverage when it was cheap and easily accessible and they used it for that decade of boom that we had until rates started going up. Now that roads have gone up, but they are coming back down, we can always discuss what neutral looks like. What we have is now investors seeking, where do I invest that I can still find value in, given how expensive the public markets are, right? You think about the forward PE of the public markets today, where do I still get relative value where I can buy at sensible multiples and sell at higher ones, private markets. So it's a diversification strategy. And secondly, it's an incredibly important way for investors to say that as I think about”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Exploded over the last two years and will continue to do so over the next decade or so. And it's a global phenomena. Of course, the US led the way and certainly the Forty Act regulation of allowing semi liquid evergreen products and individuals to invest on those was a huge game change when it came to private wealth's interest in alternatives. We're seeing the same thing in Europe. We're seeing the same thing in Asia that individuals who have a certain net worth are saying I want a bit of private equity in my portfolio. How do I go out to get it? And more and more sponsors are saying, well, I'm going to create solutions for you to access my funds and product and my alpha through accessible channels.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Absolutely, the entrance of private wealth into private markets, but private equity in particular has been the single biggest innovation and movement of capital from investors into private markets in the last five years. It's been happening started off over the last decade, but is really over the last three to five years we've seen an acceleration. And here's the most important fact that as ultra-high net worth and high net worth individuals build out their portfolios, they're putting equities, they're putting bonds, and they're putting alternatives and alternatives being led by private markets. The average investor in private wealth is under allocated to private equity by three to five x, three to five hundred percent. That is a huge number, and so the growth of private wealth as an investor in private markets has absolutely”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“And we also organize a liquidity when the general partner asks us. Sometimes the general partner will say, actually, can you help organize liquidity for a company that needs to be sold out of the fund because the fund is reaching its end of life, the fund needs to sell some companies, but I general partner want to hold on to it longer. So pull it out of the fund and put it in its own fund, and that is called a continuation vehicle space, and that's something we do all day, every day as well.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Different timelines. Is that fair? You explained it very, very beautifully. The only nuance I'd add to that is that that liquidity can be asked for by both the limited partner, so i.e. the investor in the fund itself, and we get asked by pension plans, endowments, foundations, family offices saying, hey, we've held this portfolio now for eight years, nine years. It's getting long in the tooth, or actually my predecessor made these investments. I'm the new CIO. Can you sell this stuff for me? I don't like it anymore. Or I've actually realized the gains I thought I would realize much sooner than I expected. Can you sell this on for me? All reasons to seek liquidity on the limited partner side, and we do that all day, every day. Actually, I've done 163 transactions in that space alone in the last decade.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“It says ten on the tin, it's ten with two one year extensions, so up to 12, but the average vehicle is around for average is around for sixteen point two years, hence the need for the secondary's market to provide liquidity for investors who want out.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Indeed Yes, very lucky to have launched then. But you're absolutely right. But the secondaries market in private markets. Is only one hundred and forty and fifty billion dollars in size. But growing rapidly, that market when we first did our first secondaries transaction as a firm in 2012 was only 20 billion, a drop in the bucket. Today's 150 billion, still small compared to the size of the primary private equity market, but these investors won liquidity too, Barry. Yukov held something eight years, nine years, ten years, you want out. Who do you go to? You've got to tall a market maker like ourselves who can make and advise on that position in the secondary's private equity market to get you liquidity. Can I tell you one fun fact? Sure.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, in private markets today there is a one point six trillion dollars new capital raising engine that hums along annually. That's how much capital is raised across private market funds in a 12 month rolling cycle.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“We sit in between the GPs and their LPs when it comes to, and we will raise everything from a small for us would be a 250 million dollar fund and our largest client raised $27 billion in their flask fund. And everybody in between in the last year alone, we raised north of $4 billion of new capital commitments for our clients and our very proliferation at ensuring that private equity general partners raise the capital they need to go off and buy businesses and build the ecosystems around each of their businesses. So we sit right in between general partners and limited partners, got a team of In private markets today it's flipped but that means”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“By buying smartly in Europe and an advantage, quite honestly, a valuation arbitrage that you can play all day long and many of them do so very successfully.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“It's the structure. It's structural. There's not that many participants. It's also legal and regulatory, right? In the UK, there was a move away from holding UK assets by the UK pension plans. That sucked the liquidity out of the UK markets, hence the valuation gap. So there's also regulatory angles that are at play there. On the private markets, though, I've got to agree with you entirely. There is a valuation arbitrage even in the private markets that the European buyout specialists are able to buy companies at better value in Europe and scale them into global businesses and sell them at global valuations or US market valuations when it comes down to selling time. So some of the biggest, best private equity household names that you know, whether it's a Blackstone or an APAX or a Clayton Dublian Rice, have headquarters both sides of the pond because there's so much value to be harvested.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Which certainly skews through the valuation on the On the private side, we see a similar valuation gap. And I'll just finish the public market side. The UK and the European capital markets just don't have the same depth, which is why you see the valuation mispricing.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“So, firstly, let's comment on the public market side. That is characterized very much that valuation gap is characterized by the depth of the markets. The U.S. capital markets vibrant, incredibly dynamic, incredible fragmentation of investors, deep, rich market where you can do business on the capital market size pretty seamlessly.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“We do cover Asian and Middle Eastern investors in my business prolifically and have done from almost the first day of inception. You cannot ignore the rest of the world, as you know, the sovereign wealth funds and the institutions in the Middle East are big movers in the market today. And that's today, I started covering Middle Eastern institutions when I first opened the doors of the business now 14 years ago. And 14 years ago, people were like, I don't know if I need to go over there. It's a huge investment of time and airfare and so forth. Well, now everyone's saying I wish I'd built those relationships long ago because relationships die hard in those markets, Asia and Middle East, and those relationships I've had and my team has had for a long time.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“There, they will have local offices if they know they need to operate in the Italian market. They'll have presence in Milan or they'll have Italian experts in-house that know how to operate and buy businesses in Milan, or they'll have sector experts because a software business in Italy is going to be very similar to software business in Texas. The operating environment might change, but the characteristics of the business and how you drive value in that business will often be very similar. So you've got to make sure you're either a sector or a regional expert, and that often depends on the size of business you buy.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“And differences That's not true in Europe, is it? It depends on the size of businesses you're buying, right? If you're buying businesses that are up to, say, 10 or 20 million dollars or euros of EBITDA, then it really matters that you're a regional champion, right? That you understand how a German business can scale in that end of the market versus how a Nordic business will scale. So they're having regional footholds and expertise really matters. But when you're doing larger businesses and we have clients that are pan-regional, that are European, pan-European buyout players, or that are global buyout players that do global deals US and Europe, but they do them for larger businesses and larger businesses often tend to have global customers because by definition you've got to make sure you've diversified your revenue out. So it depends on what scale of business you're doing. But even if we're the largest private equity funds out there,”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that it depends on what type of investing you do, right? At its heart, private equity is about buy low, sell high, right? It's a long only strategy in the private markets. So you got to buy a business and you've got to know that you have to add value and make it larger, better, stronger, and then sell it on. So a number of the clients we have are Pure Play regional focused. So we have a German private equity client. We have a Benelux private equity client. We have a Nordic private equity client. We've got UK clients. And they are experts in understanding what needs to happen to grow their businesses and their companies that they're buying and selling in their target market. They know the customer base. They know how to impact the value drivers, i.e. on the talent acquisition side, on the add-on bolt-on strategy side. They know how to do that in their regional markets incredibly well.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“Hundred percent. And so starting sub-capital in London ended up being both a blessing and a curse. Why was it a blessing? It was a blessing because there was not that many startups there, period. There was not that many new entrepreneurs starting financial services companies. And so it made us very unique and able to differentiate ourselves in the UK and European market very quickly. There were not that many new entrants. And we use that to our advantage and often still do. Although the market has definitely come a long way, there are still divergences on ease of doing business. But it became very clear to me, Barry, very quickly on we would have to diversify our business to be US focused. And so we opened our first office in New York a few years after we started, and we've been heavily focused on the US private equity clients and U.S. institutional investors have done so from day one, knowing that actually the U.S. market is much deeper and much larger than UK or Europe could ever be, but also the”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source
“You are absolutely right, operating in the UK and in Europe at large and the US are fundamentally different. Having been at Stanford, worked in the Bay Area, then went to Harvard and worked in the Boston ecosystem, came out to New York. London was a bit of an adjustment, I will tell you that, because the startup ecosystem, especially in the early 2010s, was nowhere near what it was in San Francisco and the Bay Area.”
2025-01-02 · Masters in Business · From Biotech to Asset Management with Sunaina Sinha · IDENTIFIED FROM THE TRANSCRIPT · source