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Speaker 1: Kim Kardashian is expanding her empire into private equity. The

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Speaker 1: reality TV star turned entrepreneur is partnering with Carlisle Group

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Speaker 1: veteran Jay Sammons to start Sky Partners. Kardashian and Sammons

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Speaker 1: both spoke with David Rubinstein at the Super Return conference

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Speaker 1: in Berlin.

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Speaker 2: Thank you very much both for coming today.

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Speaker 3: Thank you, David.

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Speaker 4: I've often said that private equity is the highest calling

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Speaker 4: of mankind. Why did it take you so long to

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Speaker 4: realize that and that to join the private equity world.

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Speaker 5: I finally got talked into it once I came to

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Speaker 5: that realization. I have had a long standing relationship with Jay,

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Speaker 5: who came from the Carlisle Group, and I was pretty

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Speaker 5: close to doing a few deals with Jay when he

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Speaker 5: was at the Carlisle Group. So for about ten years

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Speaker 5: we had conversations, whether it was through something we were

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Speaker 5: going to do or people close to us were going

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Speaker 5: to do. And I was privy to all of those conversations.

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Speaker 5: So we finally, you know, had the conversation that we

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Speaker 5: should really get into business together.

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Speaker 6: It's been a fascinating process.

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Speaker 4: So the name of your firm is Sky Partners. Sky

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Speaker 4: is usually spelled s k Y. Yours is s KK.

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Speaker 4: Why how did you come up with that name?

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Speaker 5: You know, we had to have a little bit of influence.

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Speaker 5: I thought, you know, Jay Salmons, I thought that the

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Speaker 5: s for Salmon's and KK Kim Kardashiankay.

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Speaker 2: It worked out.

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Speaker 6: It worked out.

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Speaker 4: So You've now been exposed to the private equity world

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Speaker 4: for a little bit of time. You've met the investors

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Speaker 4: here and around the world, so forth, what is your

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Speaker 4: view of the private equity investment community? The most honest

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Speaker 4: people you ever met, the nicest people you ever met,

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Speaker 4: nice as people as people are in Hollywood, or these

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Speaker 4: are nice people, or what's your impression of the people

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Speaker 4: that invest in funds like the one you have?

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Speaker 5: Very very nice people. I actually have been introduced to

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Speaker 5: the world a lot of my friends growing up. They

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Speaker 5: are in this space now. So I'm on a group

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Speaker 5: chat where I'm being asked all the time about different

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Speaker 5: companies and businesses, mostly tech, that they invest in if

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Speaker 5: they're really good companies. And I've even gotten on you know,

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Speaker 5: zooms with all of the founders to hear their pitches

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Speaker 5: on their businesses as if I work with them already.

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Speaker 5: So I felt like it would be a really good

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Speaker 5: next step to do it okay together?

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Speaker 4: So Jay, how did you two of you first meet

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Speaker 4: and how did you get into private equity?

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Speaker 2: You are my background.

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Speaker 4: You went to the University of North Carolina, not Duke University,

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Speaker 4: but you went to the University of colin as the

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Speaker 4: color of the tie Harvard business goal And so how

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Speaker 4: did you get into private equity and why did you

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Speaker 4: specialize in consumer Well?

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Speaker 7: I started, first of all, David, thanks for having us

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Speaker 7: and for being here with us. I started my investing

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Speaker 7: career about twenty three years ago, and I had the

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Speaker 7: privilege of spending almost the last seventeen years working for you,

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Speaker 7: as you know, and I just felt so fortunate to

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Speaker 7: be part of such a great firm where I learned

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Speaker 7: so much from so many people, including you, David. That

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Speaker 7: put me in a position where I now had the

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Speaker 7: opportunity to build something on my own, together with someone

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Speaker 7: that I respect so much. I actually did not start

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Speaker 7: investing in consumer businesses until I started at Carlisle, but obviously,

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Speaker 7: you know, spend the entirety of my time at Carlisle

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Speaker 7: doing that. In particular, I spend all my time trying

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Speaker 7: to back great disruptive, high growth consumer brands, and I

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Speaker 7: have a passion for that. I believe it's the best

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Speaker 7: place to invest in consumer and the experiences that I

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Speaker 7: had at Carlisle, as I said, are putting us in

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Speaker 7: a position to build something really special.

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Speaker 4: He s, guy, you did a deal with Carlisle that

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Speaker 4: I was pretty good. It was Beats, and uh we

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Speaker 4: bought it and and we sold it six months later

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Speaker 4: to Apple and it was a very large capital gain,

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Speaker 4: but because it was short term, we had to pay

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Speaker 4: ordinary rates. And I think I asked you if you

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Speaker 4: could go to doctor Dre and say if he could

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Speaker 4: postpone the closing a little bit, and I think you said,

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Speaker 4: he wasn't that worried about my tax situation.

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Speaker 2: So, but that was one of your best deals.

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Speaker 4: Beats, right, it was, And okay, what is your other

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Speaker 4: best deal that you've done.

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Speaker 7: So I was lucky to get to work with a

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Speaker 7: bunch of really extraordinary founders who had, you know, created

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Speaker 7: ideas that they turned into businesses that were taking on

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Speaker 7: the giants of industry. In the case of doctor Dre

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Speaker 7: and Jimmy Iving at Beats, they were battling against a

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Speaker 7: bunch of well established headphone and speaker brands. In the

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Speaker 7: case of some of my other ones, they were doing

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Speaker 7: the same against some of the world's best companies, and

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Speaker 7: they were all really special to me. And the reason

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Speaker 7: they're special is I got to work with great people

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Speaker 7: and great founders who were doing great things. And whether

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Speaker 7: it was James Jebi at Supreme or Dre and Jimmy

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Speaker 7: at Beets or Todd at og X, all just great

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Speaker 7: partnerships and great friendships that will last forever put us

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Speaker 7: in a position to do really well.

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Speaker 4: So when you introduced me to doctor Dre, I looked

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Speaker 4: at him and I said, you know, and they stood up.

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Speaker 2: He was very tall and.

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Speaker 4: Chiseled, and I said, like you work out, you must

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Speaker 4: work out, he said, I said how much do you

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Speaker 4: do work out? He said, I do three hours a

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Speaker 4: day And I said, well, I do three hours a

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Speaker 4: year and he said that was pretty obvious when he

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Speaker 4: told me.

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Speaker 2: So.

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Speaker 4: When you started the show Keeping Up with Kardashians, how

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Speaker 4: did that start? And did you think that was going

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Speaker 4: to make you one of the most famous people in

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Speaker 4: the world. You've got now two hundred and seventy six

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Speaker 4: million Instagram follower is that right?

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Speaker 2: Two hundred seventy six million.

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Speaker 6: Three.

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Speaker 4: Three hundred fifty nine Okay, I have none. So you

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Speaker 4: have three hundred and fifty nine million Instagram followers. Yes,

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Speaker 4: And so when you started that show, did you think

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Speaker 4: this is going to lead to a whole new life

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Speaker 4: or did you think it wasn't going to actually be

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Speaker 4: a successful show.

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Speaker 5: I absolutely did not think that it would last beyond

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Speaker 5: maybe a season or two. We were really surprised at

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Speaker 5: that we were just a filler show.

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Speaker 6: A show got canceled, and.

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Speaker 5: A good friend of my mom's, just every time she'd

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Speaker 5: come in town, she used to say to us, you guys

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Speaker 5: have to film a reality show. This is insane, what's

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Speaker 5: going on in this household. And we listened to her

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Speaker 5: and connected with Ryan Seacrest, who is our producer.

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Speaker 6: And we were filming a week later.

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Speaker 5: But it was you know, when I was nine years

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Speaker 5: old in nineteen eighty nine, the show The Real World

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Speaker 5: debuted and I was really fascinated by it. And I

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Speaker 5: was sitting and I watched it with my back friend

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Speaker 5: and I said, this is what I want to do

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Speaker 5: when I grow up.

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Speaker 6: I want to be on a reality show.

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Speaker 5: And she said, okay, when we're eighteen, you all film

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Speaker 5: an audition tape for you and we'll send it in.

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Speaker 5: And the production company that produced The Real World produced

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Speaker 5: my show. And it just was a really full circle

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Speaker 5: moment that I just had this dream when I was

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Speaker 5: nine and it came true.

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Speaker 4: All right, So you are now one of the best

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Speaker 4: known people in the world with all those three hundred

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Speaker 4: and fifty nine million Instagram followers, right, probably three hundred

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Speaker 4: and sixty million by the time this show's over. So

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Speaker 4: you also have a clothing company which is called a skims, right,

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Speaker 4: and you have a skincare beauty products company called skin

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Speaker 4: Skin by Kim Kim.

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Speaker 2: Okay, all right, all right? Did you need a lot

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Speaker 2: of help coming up with that name?

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Speaker 4: Probably not? Okay, So that's two businesses is pretty big.

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Speaker 4: Those are big businesses. Why did you think you had

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Speaker 4: the time you have four children to do another business

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Speaker 4: in the private ec weege world? How much time do

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Speaker 4: you really have for something like this?

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Speaker 5: I feel like in life you have to do things

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Speaker 5: that challenge you and help you grow and evolve.

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Speaker 6: And this is a space.

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Speaker 5: That after spending a lot of time with Jay and

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Speaker 5: with the knowledge that I've learned starting businesses taking investments

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Speaker 5: from firms and people that I've learned so much about

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Speaker 5: and having great relationships and also being on the other

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Speaker 5: side seeing relationships not work out if you don't partner

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Speaker 5: with the right investment person and team. And I really

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Speaker 5: felt like we could set ourselves apart by me really

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Speaker 5: being that person that has been the founder, that believes

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Speaker 5: in the founder, that wants to really help that company

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Speaker 5: grow and thrive and really support them because I've been

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Speaker 5: there and seen relationships work and not work, and it

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Speaker 5: was just something that I was really interested in that

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Speaker 5: I was willing to cut back on other things.

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Speaker 4: Okay, So, Jay, have you looked on I deals yet

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Speaker 4: since you formed the firm.

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Speaker 7: We have not yet, but we are busy working on

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Speaker 7: finding our first one, okay.

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Speaker 4: And so when you ask people to do meetings, do

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Speaker 4: they say no? Or is that hard to get a

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Speaker 4: meeting or probably with investors or not that hard?

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Speaker 7: So the answer is no, and im and I'm grateful

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Speaker 7: for that. And it's largely because you know, I believe

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Speaker 7: that what Kim and I are building is is unlike

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Speaker 7: anything else that's being built in this space, and it's

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Speaker 7: a very intentional combination of two really complementary skill sets that.

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Speaker 3: That other firms don't have.

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Speaker 7: And you know, knowing him for so long and really

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Speaker 7: anybody in the world who's been paying attention knows her

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Speaker 7: accomplishments and how extraordinary she is that the most important

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Speaker 7: things that are happening in the consumer economy.

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Speaker 3: Bringing that together with.

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Speaker 7: Twenty plus years of investing experience that I have is

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Speaker 7: garnering the attention that we'd hoped. But obviously we're we're

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Speaker 7: working really hard to have.

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Speaker 2: You hired other people, yet there's so far to two

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Speaker 2: of you we have.

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Speaker 7: We are up to eleven people now as of next month.

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Speaker 7: We have an investment team that consists of a bunch

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Speaker 7: of incredibly talented people who have joined us from some

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Speaker 7: of the world's best global consumer branded investing platforms. We've

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Speaker 7: hired a really diverse group of people. We are a

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Speaker 7: majority women. We're big believers in Dee and I and

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Speaker 7: in particular being inclusive what people can bring in.

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Speaker 3: So, yeah, we're well on the way of building a

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Speaker 3: great team.

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Speaker 4: Now, you have sisters who have businesses as well, but

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Speaker 4: they're your sisters.

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Speaker 2: Are you more.

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Speaker 4: Friendly with them because your sister? Are you competing with them?

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Speaker 2: From time to time. How does that work?

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Speaker 6: Yeah, we definitely.

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Speaker 5: You would think that our brands, some of them would compete,

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Speaker 5: but we don't. We even if Kylie and I are

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Speaker 5: both in the beauty space, we have different demographics. We

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Speaker 5: actually don't even talk about the products that we're launching.

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Speaker 5: We don't want I want to do completely what I

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Speaker 5: want to do. She does what she wants to do,

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Speaker 5: and it's really worked out. And even with our fund.

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Speaker 5: You know, people ask all the time or they're going

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Speaker 5: to be, you know, companies that you won't invest in

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Speaker 5: because they might compete, And the answer is no. You know,

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Speaker 5: I know the space really well and I believe there's

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Speaker 5: room for everyone, and.

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Speaker 6: I think I can be really helpful in that space.

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Speaker 4: So you have three sisters or four four sisters, four

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Speaker 4: sisters okay, and a brother and a brother and they

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Speaker 4: each have the first is their name begin with a K?

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Speaker 6: Or all the girls are a K?

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Speaker 4: And did you ever ask your parents why they thought

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Speaker 4: that was a good idea with a run out of names?

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Speaker 2: They like K.

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Speaker 5: I know the last name because our last name and

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Speaker 5: then my two younger sisters last name is Jenner.

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Speaker 6: With a J.

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Speaker 5: And she was going to go Jay's for both of them,

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Speaker 5: and then last minute she decided to stick with the case.

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Speaker 5: When she gets mad at one of us, it's really

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Speaker 5: funny because she can't figure out which name to call

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Speaker 5: and she just Poorny, Kimberly, Chloe. She just says all

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Speaker 5: of them at once and so and confusing.

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Speaker 4: When you want to go to a restaurant, can you

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Speaker 4: go to a restaurant without people coming up and asking

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Speaker 4: for pictures? Autographs? They give you their resume? How does

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Speaker 4: that work?

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Speaker 5: It depends, you know, you figure out where to go.

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Speaker 5: But you know, especially with my kids, they love to

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Speaker 5: eat out and they love to go to all of

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Speaker 5: the fun restaurants. And I'm not going to let that

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Speaker 5: experience take away a fun night out with my kids.

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Speaker 5: You know, you know what you're getting yourself into when

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Speaker 5: you go out, and you just it comes along with

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Speaker 5: the territory.

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Speaker 4: Okay. So now you have two children as well I do,

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Speaker 4: And what do they think about this partnership that they have?

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Speaker 7: I never will forget. So they're excited about it. They're

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Speaker 7: they're excited for their dad. I remember the day before

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Speaker 7: we were announcing the formation of Sky Partners, I told

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Speaker 7: my older son, who has an Instagram account. I said,

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Speaker 7: go look at your friends and see which of them

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Speaker 7: follows Kim Kardashian, because tomorrow you're going to see a

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Speaker 7: post on Kim Kardashian's page, or they're going to see

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Speaker 7: a post post on Kim Kardashian's page. That's going to

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Speaker 7: show your dad. And that was that was really exciting

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Speaker 7: for them. There they're they're and then watching all the

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Speaker 7: other fourteen year olds at the school try to get

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Speaker 7: close to me when I show up to soccer games. Uh,

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Speaker 7: it's an experience that's new for me, not new for Kim,

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Speaker 7: but it's been really fun for them.

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Speaker 4: How many Instagram followers do you have?

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Speaker 3: More than I had before September seven?

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Speaker 4: So when you told me you were going to go

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Speaker 4: start a firm, before you told me you were going

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Speaker 4: to have the Spartan, you told me you were going

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Speaker 4: to start your own firm, and I said I would

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Speaker 4: invest with it, and I there's a still room for.

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Speaker 3: Me now or there's always room, thank you, David.

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Speaker 4: Okay, So it's standard eight percent per Ford return or

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Speaker 4: something like that.

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Speaker 7: Or we are not doing anything out of the ordinary.

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Speaker 7: We are we're in the long term firm. Building business

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Speaker 7: and we're not doing anything out of the ordinary from

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Speaker 7: a term's perspective.

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Speaker 4: Okay, So when a deal comes along, how do you

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Speaker 4: have an investment committe? I presume you're on the investment committee,

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Speaker 4: and so is it a one person veto If you

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Speaker 4: don't like the deal, it's not going to get done,

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Speaker 4: or if you don't like the deal, it's not going

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Speaker 4: to get done.

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Speaker 2: How does that work?

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Speaker 5: Well, so far, we haven't really run into that issue.

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Speaker 5: We both, I think, respect each other's opinion and trust

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Speaker 5: each other. I think culturally we have the same vision

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Speaker 5: of what brands we think can grow and that we

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Speaker 5: can really help make an impact. But we also both

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Speaker 5: really believe that our team being included in these decisions

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Speaker 5: is really important and we want everyone on our.

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Speaker 6: Team to have a voice.

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Speaker 5: So I think initially, if there's something that Jay or

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Speaker 5: I both don't agree with, it'll be cut out. But

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Speaker 5: then if we can't make a decision, then the whole

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Speaker 5: team gets involved.

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Speaker 4: So are you getting deals sent to you by investment

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Speaker 4: bankers or other private equity people? What kind of deals

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Speaker 4: are you feel flow are you seeing now?

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Speaker 7: Jay, We're seeing a lot and it's it's been an

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Speaker 7: interesting first six or eight months being out there because

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Speaker 7: in the same way I was just describing, you know,

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Speaker 7: investors seeing, you know, the complementary value that we bring.

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Speaker 7: I think founders of companies that are looking to grow

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Speaker 7: and build and win in the market, in a complicated marketplace,

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Speaker 7: are looking for, you know, ways that they can differentiate themselves,

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Speaker 7: and they see in our platform not only the experiences

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Speaker 7: that we bring, but the cultural alignment and the real focus,

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Speaker 7: as Kim said earlier, on really getting to understand what

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Speaker 7: these founders want, what they believe, what they don't want

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Speaker 7: from an investor, being incredibly adaptable to them and not

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Speaker 7: trying to come at every company, you know, doing the

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Speaker 7: same thing each time, because these are living, breathing human

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Speaker 7: beings who started these companies. They are not robots, and

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Speaker 7: so we need to listen to them and understand that,

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Speaker 7: you know, what we can give and what we can't

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Speaker 7: and build a lot of alignment. And so that's brought

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Speaker 7: a lot of companies, you know, opened a lot of

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Speaker 7: doors that we we've knocked on. We've had companies come

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Speaker 7: to us because they're interested in learning more about what

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Speaker 7: we're doing, and that's been a fun part of the

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Speaker 7: first several months.

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Speaker 4: So, as you know, in the buyout world, there's a

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Speaker 4: lot of people that are doing so called secondary buyouts

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Speaker 4: and tertiary buyouts, and I've never been a gigantic fan

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Speaker 4: of that.

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Speaker 2: Are you going to do secondary buyouts?

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Speaker 7: I think most of what we will do will look

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Speaker 7: a lot like what I've done my whole career, which is,

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Speaker 7: you know, founder takes company from zero to where it

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Speaker 7: is when we find it. In most instances, we will

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Speaker 7: be the first institutional capital in In some cases they

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Speaker 7: may have raised growth capital from a different type of

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Speaker 7: investor than we are. I think it's less likely that

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Speaker 7: we'll be doing secondary buyouts from you know, other firms

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Speaker 7: you know that have already added and.

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Speaker 3: Created a lot of value.

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Speaker 7: The real goal is to drive primary value creation and

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Speaker 7: that post founder segment of the company's existence and really

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Speaker 7: helped drive them to their potential.

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Speaker 4: Why is the consumer business such a great one to

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Speaker 4: invest in? I mean, the prices are high, inflation's high,

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Speaker 4: and maybe some of these businesses may not do so

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Speaker 4: what is it about the consumer business that makes you

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Speaker 4: feel that this is a great chance to get the

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Speaker 4: kind of returns that you want to get for your investors.

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Speaker 7: I think what's most exciting about the consumer business is

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Speaker 7: how how so much power has gone away from the

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Speaker 7: companies and gone into the hands of their customers. And

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Speaker 7: what that's done is it's enabled for the benefit of

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Speaker 7: consumers around the world, for the benefit of entrepreneurs who

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Speaker 7: are creating great ideas to gain scale faster than they've

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Speaker 7: ever gained scale before, to build community around their brands

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Speaker 7: so they have loyalty to reach consumers all over the world,

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Speaker 7: which used to be a lot harder before the social

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Speaker 7: media channels that we all have, and you know, backing

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Speaker 7: great businesses and brands that we can touch and feel

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Speaker 7: that we can do deep consumer research on to understand

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Speaker 7: where they fit into consumers' lives. It's a lot of

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Speaker 7: fun to start with to be part of these winning teams,

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Speaker 7: but it's also obviously really financially rewarding when you choose

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Speaker 7: the right ones and help them win, which we always

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Speaker 7: so for.

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Speaker 4: Your two companies, you have skincare related products, beauty products

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Speaker 4: and so forth, and you've got clothing. Do you actually

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Speaker 4: test the stuff yourself where you have somebody else tested.

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Speaker 2: I mean, you have to approve every single product or not.

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Speaker 5: I do I approve everything, especially with skincare and color

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Speaker 5: cosmetics and fragrance. Everything's under one house and I test everything.

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Speaker 5: I come up with the formulas with the chemist and

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Speaker 5: with skims, with clothing, I pick all the fabrics that designs.

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Speaker 6: I still am the fit model.

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Speaker 5: I can tell if they have fit other models to

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Speaker 5: do final product. I'm extremely hands on with everything from

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Speaker 5: I do all my marketing, all of our campaigns, pick

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Speaker 5: the photographers.

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Speaker 6: I'm very hands on.

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Speaker 4: So what do you have for skincare for men in

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Speaker 4: their seventies that have a lot of wrinkles? Is there

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Speaker 4: any way to get rid of the wrinkles or the

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Speaker 4: gray hair? What do you have for men anything?

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Speaker 5: I have a lot of amazing things, but maybe it'll

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Speaker 5: be a little bit beyond skincare.

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Speaker 2: The gray hair, in other words, it's classic surgery that

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Speaker 2: I know.

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Speaker 6: I just meant her gray hair.

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Speaker 4: Okay. So all right, So when you tell people you're

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Speaker 4: going to be in the private equity world, do people

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Speaker 4: come up to you and say, private equity people, they're

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Speaker 4: not very nice, They're they're destroying America. Do you ever

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Speaker 4: get that from people or destroying whatever country they might

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Speaker 4: be in. Do you ever hear people say negative things

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Speaker 4: about this great industry.

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Speaker 6: I have heard that.

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Speaker 2: Really, so are those people your friends anymore or you don't.

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Speaker 5: I have something really funny to say, but I won't

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Speaker 5: say here it's a little too public, but someone that

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Speaker 5: I was really yes, okay, So all.

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Speaker 4: Right, And your children are young, so they don't know

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Speaker 4: private equity from anything right now, and you still drive

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Speaker 4: your kids to school every day or.

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Speaker 5: Every day and every day like today is the last

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Speaker 5: day of school.

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Speaker 6: I missed the last day.

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Speaker 5: But yes, that's really important to me and all my

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Speaker 5: sisters their kids go to school, and we all have

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Speaker 5: in the same area, so we stop at houses and

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Speaker 5: pick them up, and we should just pretty much get

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Speaker 5: a yellow bus.

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Speaker 6: At this point, there's a lot of kids, and.

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Speaker 4: You get people calling and saying, hey, I can't take

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Speaker 4: my kids to school today.

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Speaker 2: Can you put them in your carpool?

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Speaker 4: Or you don't do that every once.

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Speaker 5: In a while, Yeah, yeah, I pick up usually.

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Speaker 6: I pick up about two people on the way.

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Speaker 4: Okay, And you're a safe driver, I guess got all

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Speaker 4: these kids right, Yes, yeah I am. And so what

427
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Speaker 4: is it that you're most looking forward to about private equity?

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Speaker 4: Is it coming to conferences like this, is that what

429
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Speaker 4: you're most looking forward to?

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Speaker 5: Absolutely, I'm honestly most looking forward to my relationships with

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Speaker 5: the founders. I'm really fascinated to hear their backstory. I'm

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Speaker 5: a storyteller. I'm so excited just to have the opportunity

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Speaker 5: to help them win. And I love hearing people's stories

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Speaker 5: and hearing what their magic sauces behind them their company

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Speaker 5: and why they wanted to start the company that they did,

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Speaker 5: and what their vision is and just hope that I

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Speaker 5: can help that.

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Speaker 4: Has anybody ever talk to you about the value of

439
00:21:10,240 --> 00:21:15,640
Speaker 4: carried interest taxation, which is to say it's taxed appropriately.

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Speaker 2: Some people are not in favor of that.

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00:21:17,800 --> 00:21:20,160
Speaker 4: They've been educated about that yet or not so much.

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Speaker 6: Not so much. So Jay has so much?

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Speaker 3: Okay, all right, it's appropriate, So.

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Speaker 4: Okay, So Jay, when wre you think we can see

445
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Speaker 4: your first deal, you think it's the next six months

446
00:21:32,119 --> 00:21:33,600
Speaker 4: or so, or three months or.

447
00:21:34,240 --> 00:21:37,439
Speaker 7: I One thing I've learned over my twenty plus years

448
00:21:37,520 --> 00:21:40,000
Speaker 7: in the business is it's very very hard to predict

449
00:21:40,000 --> 00:21:42,600
Speaker 7: probabilities of deals. So I gave up on that a

450
00:21:42,600 --> 00:21:45,000
Speaker 7: long time ago. But we are really busy working on

451
00:21:45,040 --> 00:21:47,879
Speaker 7: a handful of investment opportunities, some of which are more

452
00:21:47,880 --> 00:21:49,919
Speaker 7: advanced than others, and you know, we're really hopeful that

453
00:21:49,960 --> 00:21:52,280
Speaker 7: they'll come to come to fruition here in the next

454
00:21:52,560 --> 00:21:53,320
Speaker 7: in the next couple of months.

455
00:21:53,400 --> 00:21:55,920
Speaker 4: If you're focused the US or was it global, or.

456
00:21:56,119 --> 00:21:57,960
Speaker 7: That's where we're going to start. Kim and I are

457
00:21:58,000 --> 00:22:00,480
Speaker 7: really aligned on building. You know, as I said, we're

458
00:22:00,480 --> 00:22:02,920
Speaker 7: trying to build a great firm that's going to outlast

459
00:22:02,920 --> 00:22:06,280
Speaker 7: our lifetimes. And as a result, we're doing it very methodically,

460
00:22:06,280 --> 00:22:09,040
Speaker 7: one step at a time, and to that end, we're

461
00:22:09,040 --> 00:22:12,080
Speaker 7: going to start with North America and grow from there.

462
00:22:12,600 --> 00:22:15,479
Speaker 4: Okay, So are you going to be looking for deals

463
00:22:15,640 --> 00:22:19,040
Speaker 4: and be on the investment committee, the whole gambit of things.

464
00:22:19,480 --> 00:22:22,199
Speaker 5: Okay, absolutely, I've loved the whole process and I've been

465
00:22:22,240 --> 00:22:23,440
Speaker 5: involved every step of the way.

466
00:22:24,359 --> 00:22:28,600
Speaker 4: Suppose your sister Chloe said to you, guess what I'm

467
00:22:28,640 --> 00:22:30,560
Speaker 4: going to be in the private equity world too. Would

468
00:22:30,600 --> 00:22:32,600
Speaker 4: that be a surprise or be upset if she said

469
00:22:32,600 --> 00:22:34,400
Speaker 4: I want to have my own private equity fund as well?

470
00:22:35,280 --> 00:22:37,320
Speaker 5: I would hope that she would just join us, because

471
00:22:37,359 --> 00:22:40,600
Speaker 5: she's really smart. Okay, So I would just hope that

472
00:22:40,640 --> 00:22:41,520
Speaker 5: she would join us.

473
00:22:41,800 --> 00:22:43,720
Speaker 4: So you wouldn't be upset if she got in the

474
00:22:43,720 --> 00:22:44,640
Speaker 4: private equity.

475
00:22:44,400 --> 00:22:47,520
Speaker 5: And sky worked the KK Chloe Kardashian, it still works.

476
00:22:47,560 --> 00:22:49,600
Speaker 6: She can be a part of it, all right.

477
00:22:49,480 --> 00:22:49,960
Speaker 2: I got it.

478
00:22:50,359 --> 00:22:55,000
Speaker 4: So say, right now, the private equity world, it's tough

479
00:22:55,000 --> 00:22:57,600
Speaker 4: to get financing for deals and so forth. So are

480
00:22:57,600 --> 00:23:00,720
Speaker 4: you going to be doing buyouts which were are financing

481
00:23:00,800 --> 00:23:02,360
Speaker 4: or are you're going to do growth capital deals which

482
00:23:02,400 --> 00:23:04,000
Speaker 4: presumably don't need as much financing or.

483
00:23:04,000 --> 00:23:07,800
Speaker 7: Any Yeah, our strategy is actually really consistent again with

484
00:23:07,840 --> 00:23:10,920
Speaker 7: what I've done in the past, which was very unreliant

485
00:23:10,960 --> 00:23:14,760
Speaker 7: on leverage. In the consumer growth world, It's about great

486
00:23:14,800 --> 00:23:18,560
Speaker 7: assets selection and great execution on value creation plans. It's

487
00:23:18,600 --> 00:23:20,680
Speaker 7: not about the marginal amount of leverage that will drive

488
00:23:21,200 --> 00:23:23,680
Speaker 7: a few basis points of incremental returns. So in some instances,

489
00:23:23,720 --> 00:23:25,639
Speaker 7: when the companies can support it, we'll use a little bit,

490
00:23:26,040 --> 00:23:28,600
Speaker 7: but in most instances we won't. It's all about just

491
00:23:28,640 --> 00:23:29,920
Speaker 7: getting behind the right idea.

492
00:23:30,000 --> 00:23:33,360
Speaker 4: So that's I don't want to talk about any IRRs

493
00:23:33,440 --> 00:23:35,200
Speaker 4: with your fund and none of the things that the

494
00:23:35,280 --> 00:23:37,320
Speaker 4: lawyers will be all upset about. So just tell me

495
00:23:37,400 --> 00:23:41,120
Speaker 4: this generally today, if somebody is making a private equity

496
00:23:41,160 --> 00:23:46,120
Speaker 4: investment in the consumer space. What type of internal way

497
00:23:46,160 --> 00:23:49,480
Speaker 4: to return net do you think is appropriate given high

498
00:23:49,480 --> 00:23:52,080
Speaker 4: inflation we have and high interest rates. What do you

499
00:23:52,119 --> 00:23:54,840
Speaker 4: think somebody should be getting if they are doing a

500
00:23:54,920 --> 00:23:56,239
Speaker 4: deal the type that you want to do.

501
00:23:56,760 --> 00:23:58,480
Speaker 7: Yeah, I was going to say first, It really does

502
00:23:58,480 --> 00:24:01,080
Speaker 7: depend on the type of deal. And I think we

503
00:24:01,119 --> 00:24:04,399
Speaker 7: look at each company independently and price the risk and

504
00:24:04,440 --> 00:24:08,240
Speaker 7: the opportunity together. But you know, we've underwritten in the

505
00:24:08,280 --> 00:24:10,159
Speaker 7: past and we'll continue to underwrite in the future to

506
00:24:10,359 --> 00:24:14,560
Speaker 7: high returns that reward our investors for you know, for

507
00:24:14,680 --> 00:24:17,120
Speaker 7: the risk profile and the opportunity profile of what we're

508
00:24:17,160 --> 00:24:19,400
Speaker 7: investing behind the nature of a lot of these businesses

509
00:24:19,440 --> 00:24:22,760
Speaker 7: is number one, they are relatively young companies. Number two,

510
00:24:22,800 --> 00:24:25,159
Speaker 7: they still often have founders involved that you know, you

511
00:24:25,280 --> 00:24:30,200
Speaker 7: manage through founder transitions often in leadership. They are often

512
00:24:30,240 --> 00:24:32,200
Speaker 7: proven in one place that you know they're trying to

513
00:24:32,200 --> 00:24:34,560
Speaker 7: go another, whether it's a geography or a channel. And

514
00:24:34,600 --> 00:24:36,800
Speaker 7: so with each of those components comes a different level

515
00:24:36,800 --> 00:24:38,280
Speaker 7: of risk that we spend a lot of time assessing.

516
00:24:38,359 --> 00:24:40,600
Speaker 7: We've been doing it our whole lives, and you know,

517
00:24:40,640 --> 00:24:43,960
Speaker 7: with that comes the need for a better reward for

518
00:24:44,040 --> 00:24:45,360
Speaker 7: that type of investment strategy.

519
00:24:45,680 --> 00:24:48,120
Speaker 4: I know that you've talked to some investors. I think

520
00:24:48,160 --> 00:24:50,840
Speaker 4: you've been on some fundraising trips and so forth. So

521
00:24:51,240 --> 00:24:53,919
Speaker 4: do people ask you the kind of ridiculous questions I

522
00:24:54,000 --> 00:24:57,760
Speaker 4: ask about yourself? Or are they asking you more serious

523
00:24:57,840 --> 00:24:59,880
Speaker 4: questions about what you're going to do? Or are they

524
00:25:00,240 --> 00:25:02,800
Speaker 4: virgin too asking you about your background and all the

525
00:25:02,880 --> 00:25:06,000
Speaker 4: things that I've been asking about that people are curious about.

526
00:25:06,400 --> 00:25:09,400
Speaker 4: You get both or just investment kind of questions from

527
00:25:09,400 --> 00:25:10,600
Speaker 4: the investors you talk to.

528
00:25:11,080 --> 00:25:14,320
Speaker 6: So far, you're the first one to venture off.

529
00:25:14,400 --> 00:25:18,119
Speaker 5: Yeah, it's been strictly I think more of the questions

530
00:25:18,160 --> 00:25:23,640
Speaker 5: of Also what you've asked is number one, why how

531
00:25:23,640 --> 00:25:27,000
Speaker 5: did I meet Jay? How much time would I have

532
00:25:27,040 --> 00:25:32,160
Speaker 5: to put in this? And what kinds of companies are

533
00:25:32,160 --> 00:25:36,520
Speaker 5: we looking to invest in? And all the same types

534
00:25:36,560 --> 00:25:39,399
Speaker 5: of questions that you've asked, minus the personal one, and.

535
00:25:40,320 --> 00:25:42,760
Speaker 4: Get Sometimes if you do six or seven of these

536
00:25:42,800 --> 00:25:44,640
Speaker 4: a day and you get asked the same question six

537
00:25:44,760 --> 00:25:47,040
Speaker 4: or seven times a day, you're get tired of answering

538
00:25:47,080 --> 00:25:49,880
Speaker 4: the same thing six or seven times a day.

539
00:25:49,960 --> 00:25:50,840
Speaker 6: Not yet, not.

540
00:25:50,880 --> 00:25:57,360
Speaker 4: Yet, okay, it'll come okay. So in the remaining three

541
00:25:57,400 --> 00:26:01,720
Speaker 4: minutes or so. We have Jay right now. Any second

542
00:26:01,720 --> 00:26:06,200
Speaker 4: thoughts about having studying, setting up your own firm, doing

543
00:26:06,240 --> 00:26:10,159
Speaker 4: this highest this is the highest point of your career

544
00:26:10,680 --> 00:26:13,359
Speaker 4: or the most interesting thing you've done. What would you

545
00:26:13,359 --> 00:26:15,560
Speaker 4: How would you assess your decision to do this?

546
00:26:16,720 --> 00:26:19,560
Speaker 7: No question that there are There are no regrets. I

547
00:26:19,600 --> 00:26:22,000
Speaker 7: miss I miss my old firm, and I miss my team.

548
00:26:22,600 --> 00:26:24,080
Speaker 7: I Like I said, I got to spend a lot

549
00:26:24,080 --> 00:26:27,159
Speaker 7: of time there and I'm really grateful for that. But

550
00:26:27,280 --> 00:26:32,159
Speaker 7: an opportunity to build something distinctive, that is what I'm

551
00:26:32,200 --> 00:26:34,480
Speaker 7: really passionate about, and most importantly, to be able to

552
00:26:34,480 --> 00:26:36,680
Speaker 7: build it with someone in whom I have so much

553
00:26:36,720 --> 00:26:40,119
Speaker 7: trust and respect that together, the opportunity that we have

554
00:26:40,160 --> 00:26:43,840
Speaker 7: to build something great is so much fun. Even though

555
00:26:43,840 --> 00:26:45,840
Speaker 7: I'm working harder than I have worked in a very long time,

556
00:26:46,119 --> 00:26:48,240
Speaker 7: It's fun and it puts fuel in my tank that

557
00:26:48,760 --> 00:26:53,199
Speaker 7: drives me to success, and thus I don't regret it

558
00:26:53,280 --> 00:26:53,600
Speaker 7: at all.

559
00:26:54,640 --> 00:26:57,760
Speaker 4: So have you read you haven't done the investment committees yet?

560
00:26:57,800 --> 00:27:01,080
Speaker 4: I guess, But so my advice only be don't ask

561
00:27:01,119 --> 00:27:04,040
Speaker 4: your stay off to write five hundred page investment committee memos.

562
00:27:04,440 --> 00:27:06,399
Speaker 4: You can't get it in twenty pages. It's probably not

563
00:27:06,440 --> 00:27:09,239
Speaker 4: a great deal, that's my experience. But you haven't had

564
00:27:09,280 --> 00:27:11,600
Speaker 4: the deal with these long Investment Committee memos yet, I

565
00:27:11,600 --> 00:27:12,199
Speaker 4: guess have you?

566
00:27:12,520 --> 00:27:12,680
Speaker 6: Yeah?

567
00:27:12,800 --> 00:27:14,960
Speaker 3: All right, that rule is already in the bookstated good.

568
00:27:15,080 --> 00:27:17,200
Speaker 2: Okay, So just learned from the best.

569
00:27:17,520 --> 00:27:20,560
Speaker 4: So if we came back one year from today, we

570
00:27:20,640 --> 00:27:22,840
Speaker 4: come back here one year from today, what do you

571
00:27:22,880 --> 00:27:26,680
Speaker 4: hope you will be able to show this audience you've

572
00:27:26,680 --> 00:27:28,520
Speaker 4: done in one year in private? Quly, how many deals

573
00:27:28,560 --> 00:27:30,879
Speaker 4: you think you could realistically do, and how do you

574
00:27:30,880 --> 00:27:33,320
Speaker 4: think you will be in one year or two years

575
00:27:33,320 --> 00:27:35,280
Speaker 4: from today? What do you expect your firm will be

576
00:27:35,280 --> 00:27:35,880
Speaker 4: doing by then?

577
00:27:37,040 --> 00:27:39,720
Speaker 5: In a year from today, I really hope that I'd say,

578
00:27:39,720 --> 00:27:43,880
Speaker 5: our top two or three deals that we've really kind

579
00:27:43,920 --> 00:27:47,520
Speaker 5: of honed in on would have happened by then, and

580
00:27:47,560 --> 00:27:48,720
Speaker 5: we would see.

581
00:27:50,760 --> 00:27:52,040
Speaker 6: Already some growth.

582
00:27:52,160 --> 00:27:56,280
Speaker 5: I mean, we've really been overwhelmed with the amount of

583
00:27:57,000 --> 00:28:01,439
Speaker 5: outreach from different brands that has been really exciting, and

584
00:28:01,640 --> 00:28:04,680
Speaker 5: just the few that we've kind of narrowed it down

585
00:28:04,720 --> 00:28:06,960
Speaker 5: to has been even more exciting.

586
00:28:07,119 --> 00:28:08,120
Speaker 6: So I just hope.

587
00:28:07,920 --> 00:28:10,800
Speaker 5: That that all comes to fruition.

588
00:28:11,200 --> 00:28:13,600
Speaker 4: So if I wanted to go on Instagram and get

589
00:28:14,119 --> 00:28:14,960
Speaker 4: a few followers.

590
00:28:15,000 --> 00:28:17,400
Speaker 2: What's the best way to do that? What do you do?

591
00:28:17,400 --> 00:28:17,600
Speaker 4: Do you?

592
00:28:17,920 --> 00:28:19,919
Speaker 2: I don't know what should I do? A makeover? What

593
00:28:19,960 --> 00:28:20,840
Speaker 2: do you think I should do?

594
00:28:21,480 --> 00:28:28,800
Speaker 5: So authenticity is key, so I would end vulnerability, sharing

595
00:28:28,840 --> 00:28:32,520
Speaker 5: a little bit of your life and storytelling.

596
00:28:31,880 --> 00:28:35,119
Speaker 6: In your journey. Okay, well i'll follow you.

597
00:28:35,480 --> 00:28:37,760
Speaker 4: I'll try that. Okay, so I get one followers to you,

598
00:28:37,880 --> 00:28:41,120
Speaker 4: but I have one follower okay, all right, Well listen.

599
00:28:42,080 --> 00:28:44,560
Speaker 4: I know it is somewhat inconvenient for both you to

600
00:28:44,560 --> 00:28:46,640
Speaker 4: be here and do it, but I appreciate your coming

601
00:28:47,120 --> 00:28:49,080
Speaker 4: and letting us know about what you're building.

602
00:28:49,160 --> 00:28:51,680
Speaker 2: And if you come back a year or two from.

603
00:28:51,560 --> 00:28:53,680
Speaker 4: Now, we will see some of the deals you've done,

604
00:28:53,680 --> 00:28:56,520
Speaker 4: and hopefully they'll be very good because I expect to

605
00:28:56,520 --> 00:28:58,320
Speaker 4: be an investor and I want to see good return.

606
00:28:58,400 --> 00:28:59,200
Speaker 2: So thank you very much.

607
00:28:59,520 --> 00:29:05,680
Speaker 6: Thank you, and Angela Attard Land Afraid