YouSaid · the spoken record

Todd Boehly

lines on the record: 64
first: 2022-12-29
most recent: 2022-12-29
sittings or episodes: 1
sources: podcast

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“Sweat the small stuff that would be the thing that I would focus on. I mean, I think most of one's worrying is worrying about things that don't happen. So I spend most of my time trying to figure out how not to sweat the small stuff, how not to create my own drama that kind of adds to my own complexity because generally the things that I'm worried about aren't the things that are going to happen that go wrong to be very adaptable and very responsive to things that happen and reflect on things that happen, but don't get twisted about things that might happen because the odds of them happening are probably pretty low.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Those two things my dad always said that if you're not following, you're not learning. And then he always said, make sure you finish a job you start and don't have a bunch of non-finished business, but always finish a job you start.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I've made a lot of mistakes, but I think early on, trying to force things, forcing things or forcing answers or being short with time or not taking the time. If you go out and you try to force something to happen, it almost always backfires on you. So you have to let it develop and you have to kind of stay on both sides of the path so the opportunity doesn't fall off the path. But at the same time, you can't go out and grab it and pull the opportunity down the path. And my experience with security benefit, if I've met that opportunity when I was 26 or 7, I'm sure I would have blown it. But by the time 2010 showed up, I took 18 months to get that deal done. But I was patient. I was relaxed. I was calm. I knew my odds of getting it done were better than anyone else's. And so therefore I took the time to let it develop. And I think, again, forcing things was one of my early mistakes. And, you know, I think as a manager, I've also learned a lot about like being calm, not reacting.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“So for me, that's really easy. Mark Walter, CEO of Guggenheim, and Mike Melken, I had the great fortune of being close to both of them for a very long time. And the knowledge that I've got from them, the fact that they really told me the truth, I remember one day asking Mark, like, well, I want certainty. And Mark ripped my head off. I was like, what are you talking about certainty? There's no such thing as certainty. then having the benefit of speaking to Mike about capital structure and business and industry and perspective and history and all the stuff that he's seen and dealt with both of those experiences with both of them have been very memorable.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“I really get frustrated when people talk about capitalization and cap structure before they talk about the business. I really want to understand the business. I want to understand why it's valuable. I want to understand why it's going to continue to be valuable. And then I want to know who owns it and what's its capital structure. But I never want to start with who owns it and what's its capital structure. I always want to start with forget the right side of the balance sheet tell me about the left side. I really want to understand the left side.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“I guess people who talk too much, not listening. It's just amazing to me when there's so much information out there to be gathered and some people just spend all their time talking. And to me, I just find listening so much more interesting.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“I really like to exercise every day. So I generally get up and exercise first thing in the morning. Helps me clear my head, helps me start the day fresh and just is a good routine.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“I said earlier, my dad taught me if you're not following, you're not learning and skiing. And skiing for me is the thing I like to do the most when I'm not working. And I also love it because my three boys love it. And my wife loves it. When everyone's so exhausted after skiing all day long, there's no complaining. There's no whining. Everyone gets along. So there's nothing more exciting to me when everyone's too tired to fight. It's a great way to spend time with my boys and with my wife.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“To see, okay, I like this little idea of Leilo, or I like this little business. Let me get started in it and learn and let me watch. And then ultimately, if it becomes a bigger opportunity, then you can kind of allocate more capital towards it.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Last year, we made over a billion dollars. Every year now, we're making so much money that we got to keep reinvesting that. And so I think we have the flexibility to reinvest wherever we go, whatever those earnings are. We've got the ability to pivot into places where we feel like there's more growth. For me, right now we're spending a lot of time looking at fintech and figuring out how do we get earlier and earlier and find good ideas. And then of course put a little bit of money in to test them. And then once you start seeing them develop, you can go deeper and deeper. And sometimes people say, well, you know, we made a $4 million investment in that or you know, how do you have time to have a balance sheet? But a lot of them are testing things with the idea that if they work, you're going to put a lot more money in them. But again, it's kind of like a debt aiding approach as you start.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“So in between that digital zero one, you're going to feed the stars and cut off the ones that are really failing. How do you have the opportunity to reallocate capital within the businesses that you expect to continue to hold for the long term?”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“But again, it's kind of like the whole credit mentality where you date a little bit before you go deep. And everything we've done, we've always taken a very measured approach. People would tell me, well, making movies is a really risky business. Well, the way we started making movies was we would sell off the foreign rights market by market. So you could go to Germany and you could get a million dollars for Germany and you can get $2 million for the UK. So if we sold the rights, we knew we could get enough money to make a movie. Then we had the US domestic as the upside and the movie got paid for by selling off all the international rights. That didn't feel like a really risky business model. Yeah, not all the movies worked, but if they were all paid for and you weren't deficit financing them, then what's your downside?”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“We're here to feed the stars and the ones that aren't surviving are the ones that will pull out of. And we've shut down a couple businesses and we've had challenges where things haven't worked out. But our ability to kind of shut those down and run them off or pivot away from them. You just have to have the fortitude to say, okay, well, this isn't working. Time to move on. And you can't spend a lot of time lamenting the things that have gone wrong. Learn your lessons. Take your medicine and move on and use it as one more thing. I think it was Mandela who said, we don't fail. We either win or we learn. And I think that's our attitude. Our goal is to win or to learn. And occasionally learning comes with failure. But don't be afraid of failure. One of the things that my dad always told me when we were skiing, he's like, if you're not falling, you're not learning. But of course, you don't want to go off a cliff.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Think it's hard to do. But I do think that we'll continue to go deeper in tech. I think we'll continue to find great asset management businesses. We're a large shareholder in digital bridge. I love watching what Digital Bridge has done as they've transitioned from kind of a legacy real estate asset management business called Colony Capital into Mark Gansy's led digital bridge where he's building just massive businesses around this digital infrastructure world. We're building data centers with iconic and we're also really looking for partners that offer unique insight where and of course what we can do is if we find the right partner we can invest in the fund and then co-invest. And to me it's almost like we're just looking as Blunkers with our lights on and our helmets and trying to figure out where the best places to go.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Board members. He needed a new CTO. He needed a lot of which we were able to help him get. So finding businesses like that that have these great opportunities. And you can see how it works on a whiteboard. But the problem with the whiteboard is the stick people aren't the same as the humans. So, you know, the humans never behave like the stick people on the whiteboard. But ultimately we've got experience, resources, knowledge. And it's for us, it's finding those businesses and keep growing with them. We've done some stuff in Europe, but I want to keep growing in Europe. I want to keep growing in the US. You know, I also am not highly motivated to go to And if I don't have an edge, then I don't know why I'm doing it. Ultimately, if you're not local in what you're doing or you don't have a local presence that you trust”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Just hope it continues to grow. I used to tell everyone at Guggenheim that if you're not growing, you're dying. And ultimately, some people would be like, why would you say that? And the reality is that if you're not giving people opportunity to evolve and grow, then you're creating an environment that's stagnant. So my job is to continue to grow so I can continue to grow all the human capital around me and give them opportunities in order to step up and grow. So to me, I just want to keep compounding and growing elders. I want to keep finding interesting businesses to invest in. And I want to keep getting closer and closer to the sourcing of those opportunities. And sometimes that means finding mats business. And he needed 50 million of capital in order to grow to get to the next level. He needed new.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“In the right place at the right time on that one and really bullish on what that platform is going to look like over the next 24 months.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“For places to create yield because there is no fixed income investment grade business anymore. So if you look at where the investment grade bond market is today, two and a half, three and a half, what is it, right? Triple Cs are trading at four and a half or five. So you think about that as a fixed income asset class. There's no yield in that anymore. Therefore, people are going to have to go find yield and the place that they're going to go is an alternative asset management. Matt is the gateway. So he connects the alternative asset manager who has the know-how with the registered investment advisor who has the demand. So if we can do that in a really elegant, streamlined fashion, and he's launched KSIQ, which is going to help educate people to make them feel informed about the decisions that they're making, I think his business is booming. It's never been stronger. Frankly, I think we were.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“So, I think Matt's got an unbelievable opportunity. I think if you look at distribution and demand for alternative assets, he's got an opportunity to transition from a legacy business to a fintech platform. And of course, if you can think about the value creation that goes from being a distribution business into a fintech platform that's got distribution, he's offering alternative asset managers access into the registered investment advisor community. So to be able to take out all of the complexity, but to be able to go to whoever the name is and say you have this massive registered investment advisor universe that is short alternatives and is looking”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“There's really no reason to ever get upset. You can get angry and you can get yell and you can scream, but I just don't find that to be productive. And the really good leaders are the ones who can balance their kind of emotional responses and cut through the BS in order to find the right answer. And you're going to have challenges. We're taking risks. We're not buying treasuries. So to me, that ultimately comes with some level of complexity. So you have to have the stomach for that. You can't let emotions dictate decisions. And it's the best leaders are the ones that I find are the calmest at the times of most intensity.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“As fast as we try to move and to get stuff done, there are very much times where you just need to slow down and listen and think. Don't get confused between action and progress. And there's a lot of action out there. And sometimes it doesn't result in progress. So I've learned a lot from just watching people who are very good at their industry and know their industry cold. Stonebrier is an equipment leasing business. And Dave Fate, who runs it, it's his third time running an equipment leasing business. And I tried to build an equipment leasing business before and didn't have the right people. And so I was kind of skeptical that he'd be able to do what he's been able to do. But it's because he's got the best relationships. So it comes back down to relationships, knowledge, skill sets, and maturity. And also,”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Great, we're aware for you. If you're a CEO and you decide you want to keep going, great, we're there for you. For us, we can respond so easily to whatever the leader wants. And I think that's unique. And we're not going to be the ones to tap on someone's shoulder and say, oh, we got to sell our best three assets in order to go raise our next fund. And probably if you played those out another three or five years, you probably wouldn't have made the same decision. So you're making decisions based on things other than that specific asset. And we try to make the decisions based on that specific asset.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“The best part I get to tell people Of course, like EPRT, essential properties, we had a great CEO and his dream was to run a public company. So we were perfectly suited to help that. But we can be really flexible with finding out what someone wants relative to what we want and what we want is just continue to grow value. I tell people all the time, just focus on the left side of the business, the balance sheet. Grow that, grow the assets, make it worth more money. How you ring the bell is just an exercise. Ultimately, if your slays are focused on the left side of the balance sheet and growing the assets or the value of the business, to me how you manage the right side of the balance sheet is so easy. So really go deep on the left side, focus on the left side. And if you're a CEO and you decide that you want to sell the”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Able to move quickly. I think that puts us in demand because if you're a good listener and you can move quickly and make decisions quickly, I think there's a lot of people that want to work with you.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, one of the things I've learned is to sit back and listen more, just listen. And I think so many people want to be heard that sometimes people forget that everything that you can say you already know and all the real juicy stuff is in what everyone else is going to tell you to be a really good listener is the number one thing and really try to understand what is it that that person wants. I mean, one of the guys who Joe Carabino over at Whitney, he always used to say, you got to get in that guy's shoes. Get in that guy's shoes, figure out why he's interested in the deal, figure out what he wants out of it, and then figure out how to work within that understanding so you can find a place where you're not going to collide. So I think that the key for us is to listen and to be.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Show up, and you think about yourselves as just being a bridge that's going to make a really compelling rate of return for a period of time. So we find a lot of these interesting opportunities. And then also I don't compete directly with anyone. So I can be Switzerland and I don't need control as long as I have structural seniority. So I tell everyone, if you want control, all I want is then a preferred. If I have control, then I don't need a preferred. But I don't want to give someone else control and not have structural protections. So we have a really kind of easy methodology that people can appreciate because it's pretty simple to explain.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Of the things we care a lot about is the relationships that we have. And we try to give quick no's and we try to give quick yeses. And because we're not investing out of funds and we don't have investment committees and we don't have complexity, usually funky, interesting things end up at a place like ours. So I'll get phone calls where someone says, I've got this situation and they start to go through the dynamics of the situation, which make it clear that it's almost like a special situation of types. And we want to be able to respond to those. When there is a complexity or there's a reason why this business is going to trade at this level, and we think it's going to end up being worth this, or we've already got a buyer built in and the buyer is not ready today, but there's no guarantee the buyer will show up, but the probabilities are high that the buyer will ultimately.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“How important it is to manage their liabilities. Companies all the time have liability management exercises, but individuals don't. So to me, that was a white space where we could go out and say, okay, how are people actually spending their money? And when you actually link all your payments and link your credit cards and link your accounts, you can start to track it really easily to see where you're spending your money. And because it's so easy to see, it becomes easy to save. So it's in one place and you can see why am I spending this much on Sirius? Why am I spending this much on my cell phone? Why am I spending this much on my cable company? And they even give you alerts when it's too much. So whenever you can find tech-enabled solutions that exist in corporate world but aren't there for individuals, that also gets us excited. So we see that with Stash. We see that with Truebuild. We see that with PayActive.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“And then, of course, as we've gotten more comfortable, our network and our relationships have developed. So now we can use our network and our relationships in order to get access to, if you look at our portfolio, we've got a company called TrueBill, which people think about TrueBill as a service that helps track your spend. I think about TrueBill as the only digital liability advisor. And no one really has their own liability advisors. Everyone spends all their time on their assets, but no one thinks about, oh, if I hack out my liabilities and make it more efficient, every dollar saved on the liability side is no different than a dollar earned on the asset side. So all of a sudden, True Bill now is integrated into millions of people who track their spending every month. And to me, that was a great experience in watching people understand.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Stadium, and that gave the ability to construct a 360 degree view around home plate. So ultimately, we thought that was a cool capability. So we figured, all right, we'll put a little bit of money in. We'll give Dodger Stadium as the platform. So Dodger Stadium and the Dodgers ended up benefiting from that. So then we ended up selling that to Intel. And Intel ended up then commercializing it with all the leaks. But if I had thought about it from a point of view of does this technology work, I would have really not been able to figure that out without Dodger Stadium as the laboratory. But by using Dodger Stadium as the laboratory to install the cameras and to test the product and then to get real feedback, it became clear to us that this was additive to the viewing experience. So we try to use our businesses as technology.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Great question. We've been very active in tech, and the reason that we got active was because we decided that we didn't want to be afraid. And I'm not a technology investor by background, but we have a lot of companies. And those companies have a lot of challenges. And a lot of those challenges are going to get solved by tech. So really, we took the view of, okay, we have these companies. We think about them as laboratories. What are the right laboratories that were already in, whatever the right solutions that are tech enabled? So, for example, the very first tech investment we made was something called replay technologies. And replay technologies, if you watch homeplayed or if you watch the basketball or if you watch now football and they give you 360 degree views, that was a technology that we invented at Dodger Stadium. So we had nine cameras that were installed at Dodger Stadium.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“So ultimately, somehow these rights need to be come back together so the benefit of the collective is able to negotiate with the media companies for the distribution of the game. And ultimately, it's going to be direct to consumer because there's no reason to go through MVPDs in order to get to your customer. But all these rights have to burn off. And the challenge with them all is Since they're all done at different times, Detroit just had a chance to go its own direction. But Detroit decided that it was going to sell its media.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Because they negotiate with one voice. So they do one media contract that covers the whole league. And the reason Green Bay exists is because every team gets 130 second of that. So if you look at baseball, the old legacy was if it's local, it's the teams, and if it's national, that's the leagues. And then all the national get split. Well, that means that Milwaukee's out negotiating its local deal, and you've got every city, every team negotiating their local deal on their own without leverage. These are giant media companies that they're facing off against. And you usually only have two or three options as to who you're going to choose if you're in Milwaukee. Maybe you end up with Comcast. And of course, Sinclair bought the old regional sports networks from Disney that they acquired when they bought Fox. But there's no leverage in a conversation when they're one-off.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Points you'll get, the more stuff you'll be able to get at the stadium when you go for the next time. And then, of course, there's the version where there's real money gambling in the screen and you've kind of profile your viewing experience so you can see the stats that you want to see in order to figure out, do I really want to be betting or what bets do I want to make? And that's kind of the premium version of the experience. And the thing that separates us from being able to get there is obviously not all the states allow gambling yet, but I think in 10 years time, that will be the case. It's all about rights. It's where the rights sit. The rights are the real challenge right now. It's not the technology. The technology exists. But the rights need to be unpacked and unbundled. And of course, if you look at baseball, for example, the rights within each team are different. The NFL has been super smart.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“I love gaming because I think it's a great engagement factor. And if you're looking at the gaming world and what's going on in gaming, right? And we were early investors in DraftKings and watching how it went from a fantasy business into a sports betting business was what I thought was a very natural evolution. And ultimately, I think you're going to end up with a whole new model for watching sports. You're going to have base services, which are the kind of services that you have today. You're going to have enhanced services where you can loyalty gamble, let's call it, where you're not actually putting dollars to work. But if I'm with my son and my son's five years old and I want to be engaged in a Dodger game, I want to be able to say, is this going to be a curveball? Is this going to be a fastball? Is it going to, and the more you engage with that, the more loyalty points you'll get. And the more loyalty.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“And they're generating massive amounts of cash flow now because of the fact that they've been able to pivot. They've kept their brand recognition, but they've transitioned their business model. Magazines anymore. They're digital. I mean, there's one out of three people every week ends up on one of Variety Billboard, Hollywood Reporter, Rolling Stone, or Vibe's websites. So that is a giant audience attractor. And what you're doing is valuing those audiences.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Rights, if you don't get paid, you don't have to foreclose. You just take your rights back and you go distribute them again and you have to worry about the noise over here. But if you're lending money to a company and you don't get paid, you've got to go through a process to get your money back when in the media right world you just say, okay, you're not paying me. I'm taking them back and I'm going to monetize them elsewhere. So yeah, you'll still have a probably a lawsuit over here that you have to deal with, but you don't have to go through a lawsuit in order to get control of the asset. You can just resell it. So again, I think of those as media rights and then big brands, billboard and Hollywood Reporter are now part of Penske Media. And I always thought that Billboard Hollywood Reporter had these giant brands. And now we're a partner in Penske Media that owns Rolling Stone and Vibe and variety and billboard and Hollywood Reporter. And these are businesses that figured out how to become digital assets.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Fox, Time Warner, all of those parties were interested in broadcasting the game. And all of them were investment-grade counterparties that were going to give you a long-term contract to broadcast the media rights. So that's a derivative. So when we're looking at Dick Clark, Dick Clark has the similar type of thing. It's got long-term licensing agreements with NBC for the Golden Globes, with NBC for Billboards, with ABC for New Year's Rock and Eve. But ultimately, you know what the license fee is going to be that's coming from, whether it's Walt Disney or Comcast or these companies that are all $250 billion plus all borrow money at 3%. You're getting paid a different rate of return than that because you're doing it through the media right structure as opposed to just lending them money as an investment grade counterparty. And what I always love about media”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Of it's like rights trading. You think about the value of media rights and the Dodgers transaction was a perfect one in that regard where we bought the team in 2012. In 2013, those meteorites were coming up for sale. So what you would have been able to pay in 2014 would have been very different than what you would have been able to pay in 2012. Because if you bought the Dodgers after those meteorite deals were done and the previous owner kept those media rights, then you wouldn't have gotten that value. Ultimately, we did a lot of work on what's the value in broadcasting the game to 5 million homes. What is that worth? And ultimately, we came to a conclusion that we were very able to pay $2 billion because those media rights were effectively an investment-grade bond because you're going to get the offtake from an example, CBS.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“I think our real estate activity, we do real estate lending, we do real estate development, we buy real estate businesses. When COVID hit, one of the very first things I went looking for was industrial warehousing business because I figured we got to get bigger in industrial warehousing because e-commerce is just going to continue to boom. So I found a guy who was a senior guy at ProLogus. But every one of those in my brain looks a little bit like an asset management business, whether it's Stonebreyer.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“How much of what you've done are some form of an asset management business, CBAM credit business, within Eldridge where you have the benefit of owning security benefit. So you have the need for asset management services and then you provide them.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Put in $20 million to get it up and running, and security benefit became a very large client. So immediately CBAM had value given the fact that it had equity capital and a very large client. And ultimately, I think we'll be able to show that we're going to create massive amounts of value on the back of the fact that you had these two constituencies, both that are getting their needs serviced by having managers that you can control. So if things aren't going right, it's really easy to shut it down, go into runoff. But if things are going right, then you continue to play into the probabilities and feed the stars.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I knew I wanted a holding company that was permanent. I was able to find an investor who the two of us basically were able to form Eldridge and have the combination of assets and cash that came in at time zero and we formed it was the billions of dollars. So that gave us a really good flywheel that was spinning. And ultimately, I knew that if I could continue to grow our insurance business and our insurance business needed its assets managed, that we could be building companies in partnership with our insurance company and have rates of return generated in two places. We could get rate of return at the insurance company itself for the asset management activity. And then in something like CBAM, for example, we started that from scratch.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Different than an asset manager's. Our mandate is to continuously find places where you think your unit of return exceeds the unit of risk. To me, this is all just probabilities. And ultimately, I want to be having the broadest lens to be able to play in. And then, of course, you continuously get better and better and better and better because you get management teams that you're attached to that help you navigate different markets. So now we have over 80 companies that we've invested in. And that means I have 80 CEOs that are telling me what they're seeing out in the horizon. So that to me is extremely valuable.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Early on, it was let's build a company that can have a very broad perspective on what it invests in. And ultimately, leverage all the experience that we got across industries. You always want to be looking for places where it's less competitive versus others. And to me, starting businesses from scratch, growing them on the ground floor when prices are really high, it's cheaper to start a business. And when prices are less high, it might be cheaper and less timely to buy a business. So you have to continuously be looking at that continuum. So we're constantly buying businesses and starting businesses here. And that flexibility really allows us to capture what we think are the best opportunities because our mandate is”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Insurance asset management, and investment banking sales and trading. But that gave me the opportunity to acquire the media assets, to acquire the real estate businesses, all the stuff that I had been building at Guggenheim that was in its infancy, frankly because that was not what they wanted and I understood it. So it was a great opportunity for me to build on what I had started and a great opportunity for me to kind of cast my own direction and exactly how I want to spend my time.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“I think I had had a great run and really am excited about all that I did at Guggenheim for almost 15 years. But when I was given the opportunity to go out on my own, that was inspiring. And you had the opportunity to go build something. And I had built a great business at Guggenheim with great partners. And now it was the opportunity for me to go and do it in my own direction. And obviously partnerships are kind of like marriages. You're sharing a vision. You're sharing a goal. And now at Eldridge, I get to craft it without having to think about other complexities. It's really, what is it that we want to build and what is it that we want to do? And for me, growing businesses is so exciting. It's what I want to do. And Guggenheim made the decision that they wanted to really go deep in fixed income asset management.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Guggenheim asset management business, which then gave us a mutual fund business. And then we launched mutual funds at Guggenheim, which today they represent probably 50 billion of AUM is in our six flagship mutual funds that we started at Guggenheim around 2011, 2012.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“Was over 50 billion 60 billion of assets or thereabouts. But before I left Guggenheim, I was also the head of the asset management business. So now in what we had built was a much broader asset management business at Guggenheim, the non-investment grade credit business was one leg of the business, but we had a very large investment grade business. We had a very large structured credit business. we made a couple acquisitions. So we acquired something called Claymore, which had ETFs and closed-end funds. And then we acquired Ridex. And we did that in 2010. Ridex was owned by security benefit, which was an insurance company that needed capital. We were able to bribe the capital, and then we separated Ridex and Security Benefit, and we rolled Ridex into our claim.”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source
“The market. And I think the free scale debt was LIBOR plus 225, and it was seven times levered when there was a lot of CapEx in the business. So from a EBITDA less CapEx, it was even more levered than that. And that was when we just said, okay, maybe the market's a little too heated. So we were private at Guggenheim, so we didn't have to think about protecting market share or growing. So basically we've said, all right, we're just going to protect what we have and not look to keep growing. And that was a really great decision because then 09 hit and we didn't have a lot of stuff to be bailing out. We were really happy with the portfolio that we had. And when we were able to see what was going on in the markets after 09, Mike Milken really then went deeply. And he allocated a significant amount of capital”
2022-12-29 · Capital Allocators · 2022 Top Episode #2: Todd Boehly – The Next Berkshire Hathaway at Eldridge, EP. 223 · IDENTIFIED FROM THE TRANSCRIPT · source