WEBVTT - Masters in Business LIVE: Carlyle Group CEO Harvey Schwartz 0:00:02.560 --> 0:00:11.879 Bloomberg Audio Studios, Podcasts, radio News. This is Masters in 0:00:11.960 --> 0:00:15.640 Business with Barry Ritholts on Bloomberg Radio. 0:00:16.079 --> 0:00:19.720 I'm Barry Ridtolts. You're listening to Masters in Business on 0:00:19.800 --> 0:00:24.320 Bloomberg Radio. We have a bonus Masters in Business for you. 0:00:24.880 --> 0:00:29.560 Live from future Proof Citywide, Miami. I sit down with 0:00:29.960 --> 0:00:33.720 Harvey Schwartz, the CEO of the Carlisle Group. He has 0:00:33.760 --> 0:00:38.880 a really fascinating and somewhat unconventional path to Wall Street. 0:00:38.920 --> 0:00:42.400 We talk about he's just a news Jersey kid who 0:00:43.120 --> 0:00:45.600 didn't know what he wanted to do and had a 0:00:45.640 --> 0:00:49.760 hard time figuring out his life goals. And you know, 0:00:49.920 --> 0:00:52.560 thanks to people who took an interest in him and 0:00:53.040 --> 0:00:55.120 a couple of good breaks, plus a whole lot of 0:00:55.160 --> 0:00:59.240 smarts and hard work, he ended up really creating a 0:00:59.280 --> 0:01:02.800 career from ELF, not only at firms like Goldman Sachs, 0:01:02.800 --> 0:01:08.119 but eventually getting tapped to become CEO at Carlisle. I 0:01:08.160 --> 0:01:12.040 find Harvey to be an absolutely fascinating guy. He is 0:01:12.160 --> 0:01:18.280 a no holds barred, blunt speaker, truth teller, really really 0:01:18.400 --> 0:01:21.880 interesting person. I thought this conversation was great. You can 0:01:21.880 --> 0:01:25.400 tell I'm having a lot of fun with no further 0:01:25.480 --> 0:01:32.560 ado our special bonus Masters in Business Live with Harvey Schwartz, 0:01:32.959 --> 0:01:36.479 CEO of the Carlisle Group. I am just so thrilled 0:01:36.959 --> 0:01:41.200 to introduce you all to somebody that not only are 0:01:41.200 --> 0:01:43.240 you gonna know more about in the coming years, but 0:01:43.319 --> 0:01:45.880 it's been my pleasure to get to know over the 0:01:45.920 --> 0:01:50.440 past couple of months. Harvey Schwartz is CEO of Carlile. 0:01:51.000 --> 0:01:55.280 He comes to finance in a rather unusual way, and 0:01:55.320 --> 0:01:59.520 I'm gonna let Harvey tell's story. Let's start right there. 0:01:59.640 --> 0:02:03.559 You have a really unconventional Well before we go there, 0:02:04.000 --> 0:02:07.560 Carlisle Private Equity, private credit, been doing this for a 0:02:07.600 --> 0:02:12.040 long time. Chairman is David Rubinstein. Tell us a little 0:02:12.040 --> 0:02:15.320 bit about Carlisle First, what do you guys do? How 0:02:15.400 --> 0:02:20.239 much do you manage? Just give us the thirty second version. 0:02:20.320 --> 0:02:23.000 Sure. Well, first of all, Barry, thanks for doing this. 0:02:23.120 --> 0:02:25.720 Great to see you again, everyone, Fantastic to be here. 0:02:25.800 --> 0:02:29.440 This is such an amazing venue. So Carlisle today is 0:02:29.480 --> 0:02:32.359 about four to fifty billion of assets spread across private equity, 0:02:32.400 --> 0:02:37.560 real estate, infrastructure, credit, insurance and secondaries and co invest. 0:02:38.280 --> 0:02:41.160 For all of you in the audience, there are a 0:02:41.280 --> 0:02:44.880 number of solutions you can show your clients see tech 0:02:44.919 --> 0:02:47.079 which is the best of credit cap them. I'm sure 0:02:47.080 --> 0:02:49.600 we'll get into some of this which is our secondary's 0:02:50.240 --> 0:02:52.600 co in best business, and towards the end of the 0:02:52.680 --> 0:02:58.240 year we'll be launching our private equity solution. But I 0:02:58.240 --> 0:03:01.280 would say, you know, for me, been Carlo for two 0:03:01.360 --> 0:03:04.480 years has been an incredible privilege. The firm was founded 0:03:04.520 --> 0:03:09.160 in nineteen eighty seven by David Bill and Dan who 0:03:09.840 --> 0:03:13.760 really have created a culture which is extraordinary in terms 0:03:13.760 --> 0:03:18.240 of the people. We're twenty three hundred people today. Zach Foreman, 0:03:18.240 --> 0:03:20.359 I don't know if Zach Forman is in the crowd anywhere. Zach, 0:03:20.400 --> 0:03:24.400 can you stand up? Zach leads our effort down here, 0:03:24.440 --> 0:03:27.840 so everybody should go to Zach afterwards, and then we 0:03:27.919 --> 0:03:29.440 have a boot. So hey, that's I'm done with my 0:03:29.480 --> 0:03:32.440 advertising for the day. But I feel like I've accomplished. 0:03:32.520 --> 0:03:35.000 So let's talk a little bit about your background. You know, 0:03:35.040 --> 0:03:38.360 when I look out at the world of finance and 0:03:38.400 --> 0:03:43.000 see who are CEOs of companies that are two hundred billion, 0:03:43.120 --> 0:03:46.120 half a trillion, a trillion plus, I don't want to 0:03:46.160 --> 0:03:48.720 say they're all alike, because they're not. But there's a 0:03:48.720 --> 0:03:51.720 certain background that you tend to see a certain type 0:03:51.760 --> 0:03:56.680 of college and business school and career path. You're just 0:03:56.720 --> 0:03:59.360 a guy from Jersey. How did you sort of full 0:03:59.520 --> 0:04:01.680 ask bawards into finance? 0:04:02.600 --> 0:04:05.040 Well, I mean there are other successful people from New Jersey. 0:04:05.240 --> 0:04:07.600 Barry John Stewart. 0:04:07.480 --> 0:04:12.480 Yeah, no, Bruce Springsteen. Now there's a couple. But you 0:04:12.480 --> 0:04:15.400 know what Barry's getting at, is it a little bit unconventional. 0:04:15.440 --> 0:04:17.880 I mean, everybody has the complexity of their life story. 0:04:17.920 --> 0:04:20.599 But for me, uh, I did. Grew up in New Jersey, 0:04:20.600 --> 0:04:24.839 I too, uh parents who were quite educated, but tragically 0:04:25.360 --> 0:04:29.320 they suffered from severe mental illness. My mother suffered from 0:04:29.320 --> 0:04:31.240 what we would call today by polar disorder, and my 0:04:31.279 --> 0:04:35.719 father suffered really quite tragic schizophrenia which sort of over 0:04:35.760 --> 0:04:39.279 time really just completely consumed him. And this is, you know, 0:04:39.760 --> 0:04:45.160 many decades ago, and so treatment wasn't as good, an 0:04:45.240 --> 0:04:49.760 understanding wasn't as good. The stigma of mental health related 0:04:49.760 --> 0:04:52.720 issues and severe mental health is still an extraordinary problem 0:04:52.760 --> 0:04:55.400 everywhere in the world, certainly in our country, but back 0:04:55.440 --> 0:04:59.680 then it was even much worse. And so my mother 0:04:59.720 --> 0:05:01.600 passed when I was fourteen. I don't want you all 0:05:01.600 --> 0:05:02.760 to feel like you have to go to therapy with 0:05:02.800 --> 0:05:05.840 me and Barry. By the way, but my mother passed 0:05:06.240 --> 0:05:09.760 when I was fourteen, and then it was me and 0:05:09.760 --> 0:05:12.000 my father, and it wasn't a particularly healthy environment, and 0:05:12.040 --> 0:05:15.720 so I basically ended up doing really, really badly in 0:05:15.800 --> 0:05:20.479 high school. I didn't I barely graduated by the time 0:05:20.480 --> 0:05:24.040 I was a senior. I think it was like right 0:05:24.080 --> 0:05:25.840 around Christmas. When I was a senior in high school 0:05:25.880 --> 0:05:28.520 in New Jersey, I'd missed twenty seven days of school, which, 0:05:28.560 --> 0:05:29.760 by the way, if you actually do the math, is 0:05:29.760 --> 0:05:34.280 super hard to do. And so there was a good 0:05:34.320 --> 0:05:35.920 chance I wasn't going to graduate. I didn't apply to 0:05:35.960 --> 0:05:40.479 any colleges, but I got super fortunate. And you know, 0:05:41.560 --> 0:05:44.400 Chris was really generous when she introduced me. She referred 0:05:44.400 --> 0:05:45.520 to as a mentor, and I think you do have 0:05:45.560 --> 0:05:48.480 mentors for hopefully everyone here as mentors in your life. 0:05:49.000 --> 0:05:51.440 I had people that were more like angels that really 0:05:51.440 --> 0:05:55.279 like intervened for whatever reason they did to help me 0:05:55.320 --> 0:05:58.440 at certain crazy pivotal times in my life. And one 0:05:58.480 --> 0:06:00.760 was a woman named Linda. I had plot. She encouraged 0:06:00.760 --> 0:06:03.679 me to apply to Rutgers. I wasn't going to college. 0:06:04.040 --> 0:06:07.279 I applied, I didn't get in Linda, who's like not 0:06:07.320 --> 0:06:08.120 an influential person. 0:06:08.279 --> 0:06:10.280 Let me, let me stop you. There wasn't there a 0:06:10.320 --> 0:06:13.599 brief sojourn to California post high school. 0:06:13.720 --> 0:06:16.520 Yeah, well that was like one of the early earlier angels. 0:06:16.520 --> 0:06:20.480 So when I never really talked this much about this publicly, 0:06:20.520 --> 0:06:23.800 So I apologize if anybody finds it not interesting. But 0:06:23.880 --> 0:06:26.520 when I when I realized I had missed so many 0:06:26.560 --> 0:06:28.839 days of school, there was a chance I wasn't going 0:06:28.920 --> 0:06:32.520 to graduate. Certainly, my grades were not doing well. My 0:06:32.560 --> 0:06:35.080 father and I were deteriorating pretty quickly. And when I 0:06:35.120 --> 0:06:38.680 turned eighteen in March of that year, it was my 0:06:38.720 --> 0:06:41.880 birthday last week, by the way, In March of that year, 0:06:41.920 --> 0:06:44.320 I signed myself out of high school and I had 0:06:44.360 --> 0:06:46.320 called some friends in California. I asked if they were 0:06:46.400 --> 0:06:48.039 let me come live with them, and so I moved 0:06:48.040 --> 0:06:50.480 to California. I actually graduated high school out there. Those 0:06:50.520 --> 0:06:52.479 were like there were a lot of angels, but that 0:06:52.520 --> 0:06:55.800 family was an extraordinary angel. They took me in, but 0:06:55.800 --> 0:06:59.040 I didn't apply to any colleges and then and then 0:06:59.040 --> 0:07:01.920 eventually Linda came up long and encouraged me to apply 0:07:01.960 --> 0:07:02.440 to Rutgers. 0:07:02.480 --> 0:07:04.279 That was the next time that that was back in 0:07:04.320 --> 0:07:04.920 New Jersey. 0:07:05.120 --> 0:07:07.440 Yeah, so I come back and by the way, full. 0:07:07.279 --> 0:07:11.800 Disclosure, I mac on New Jersey. I grew up in Teaneck, 0:07:11.840 --> 0:07:14.400 New Jersey. So I feel like I'm allowed to make 0:07:14.440 --> 0:07:15.200 fun of the Styeah. 0:07:15.240 --> 0:07:18.280 No, of course, and yet another successful person from New 0:07:18.360 --> 0:07:23.240 Jersey right here live the so now it was. It 0:07:23.320 --> 0:07:26.400 was a complicated, confusing time I had to come back. 0:07:26.560 --> 0:07:29.880 I lived with my father. That wasn't great. I was working, 0:07:29.920 --> 0:07:35.080 as for those year old enough, a health instructor at 0:07:35.080 --> 0:07:38.200 a squash club in Chatham, New Jersey for the New 0:07:38.280 --> 0:07:42.200 Jersey and there was a thing called Nautilus. I was 0:07:42.240 --> 0:07:43.800 the person that trained people in the gym, which is 0:07:43.840 --> 0:07:46.040 a sort of hard feed to imagine looking at me today. 0:07:46.400 --> 0:07:51.600 But I had hair, thinner, better, more fit and but anyway, 0:07:51.760 --> 0:07:54.880 uh Lynda and her husband used to come through and 0:07:55.400 --> 0:07:58.080 I just got to know them, and she said she 0:07:58.280 --> 0:08:00.680 was a Rutgers graduate, but she wasn't an influential person 0:08:00.760 --> 0:08:05.520 like you berry, and she encouraged me to apply. I 0:08:05.560 --> 0:08:08.960 didn't get in because of my track record in high school. 0:08:09.280 --> 0:08:12.760 And she was so incensed by this that she called 0:08:12.760 --> 0:08:18.200 the university and basically convinced them to interview me and 0:08:18.240 --> 0:08:20.600 write an essay about why I was such a screw 0:08:20.680 --> 0:08:23.760 up in high school and Rutgers, which is an incredible institution, 0:08:24.320 --> 0:08:29.720 changed their selection allowed me to go to school. And 0:08:29.760 --> 0:08:31.680 that's why you know, Linda's an angel and the more 0:08:31.800 --> 0:08:34.360 family's an angel, and these people like really intervened in 0:08:34.360 --> 0:08:36.640 my life, I think in ways that are kind of 0:08:36.679 --> 0:08:39.640 hard to conceive. And Rutgers today, I think the stats 0:08:39.679 --> 0:08:43.040 are well over half the students still get financial aid, 0:08:43.440 --> 0:08:45.800 sort of one in three or first ever go to 0:08:46.800 --> 0:08:49.480 college and their family. It's an amazing institution and for 0:08:49.520 --> 0:08:53.520 someone like me gave me all the opportunity in the world. 0:08:54.040 --> 0:08:54.560 That's great. 0:08:54.600 --> 0:08:57.360 By the way, don't take the lesson that if your 0:08:57.480 --> 0:09:00.760 kid doesn't get into Princeton all up and yell at 0:09:00.760 --> 0:09:03.520 the emissions department. That's not the lesson we want you 0:09:03.600 --> 0:09:07.240 to take from this. So sore, you're now coming out 0:09:07.280 --> 0:09:10.720 of Rutgers. You don't have the traditional Ivy League business 0:09:10.720 --> 0:09:13.200 school background. How do you find your way into the 0:09:13.200 --> 0:09:14.120 world of finance? 0:09:16.200 --> 0:09:22.360 Very clumsily. I didn't know Rutgers, certainly back then, much 0:09:22.360 --> 0:09:24.920 better now. I didn't know there were JP Morgan's in 0:09:24.960 --> 0:09:28.400 the World or Morgan Stanley's or Goldman Sachs I had. 0:09:30.000 --> 0:09:32.079 I didn't even know where Wall Street was. I'd never 0:09:32.120 --> 0:09:34.240 been to Wall Street. First time I went, I was 0:09:34.280 --> 0:09:35.960 surprised it was such a little street. I just make 0:09:36.000 --> 0:09:38.280 sure a much bigger street. So it's pretty naive, about 0:09:38.320 --> 0:09:42.880 as naive as you could get. And then through a friend, 0:09:43.720 --> 0:09:46.280 I took a job at a firm called JB. Hanour 0:09:46.559 --> 0:09:48.440 For those of you're old enough, it was a municipal 0:09:48.480 --> 0:09:51.400 bond firm back in the day. This is nineteen eighty seven, 0:09:51.880 --> 0:09:54.360 and just show a hand. So how many people know 0:09:54.360 --> 0:09:58.280 what it means to work on a draw? Yeah? So 0:09:58.520 --> 0:10:01.800 I worked on a draw, which means you got paid 0:10:01.800 --> 0:10:04.880 one thousand dollars a month, but effectively it was alone 0:10:04.880 --> 0:10:07.520 and you owed it back, and you cold called, and 0:10:07.600 --> 0:10:11.600 you tried to build your book of business. And I 0:10:11.679 --> 0:10:15.240 proved to be uniquely bad at this. Yeah, uniquely bad 0:10:15.280 --> 0:10:18.440 at this. Yeah, maybe a little bit was timing. My 0:10:18.520 --> 0:10:21.960 first day coming out of the training program was the 0:10:22.040 --> 0:10:27.160 day the stock market fell. Yeah, October nineteenth, down five 0:10:27.240 --> 0:10:30.040 hundred eight points. There I was like naively cold calling people. 0:10:30.240 --> 0:10:32.240 By the way, back then there were like real phones. 0:10:32.280 --> 0:10:34.120 You had to actually push buttons and stuff, and I 0:10:34.160 --> 0:10:36.400 had this little cushion thing you would keep your head 0:10:36.440 --> 0:10:39.480 like this, and you were mostly crippled by the end 0:10:39.520 --> 0:10:42.040 of the day. But so, yeah, it was a bad 0:10:42.080 --> 0:10:45.360 time to try, and I didn't do very well at it. 0:10:45.559 --> 0:10:48.440 I had no money. I owed everybody in the world money. 0:10:48.720 --> 0:10:51.760 I had borrowed a lot of money to go to school, friends, 0:10:52.080 --> 0:10:57.640 anyone I could find, And you know, it was pretty stressful. 0:10:57.360 --> 0:11:01.720 So how do you make your way from cold calling 0:11:02.400 --> 0:11:07.280 into either asset management or firm white management. You've run 0:11:07.280 --> 0:11:10.240 your way through a lot of different departments. How do 0:11:10.280 --> 0:11:12.760 you go from just being a smiler and dialer to 0:11:12.840 --> 0:11:15.000 somebody larger in charge. 0:11:16.440 --> 0:11:21.840 Well, I got really fortunate. I was. I was at 0:11:21.840 --> 0:11:26.760 a tough point. My daughter was one year old, and 0:11:26.800 --> 0:11:29.319 I was kind of really running out of money. At 0:11:29.320 --> 0:11:32.080 one point, I thought, jeez, I might have to file 0:11:32.120 --> 0:11:34.280 for personal bankruptcy. But I didn't really know what that meant, 0:11:34.360 --> 0:11:35.559 but I knew it was a thing you did when 0:11:35.559 --> 0:11:40.360 you ran out of money. And again, a friend to 0:11:40.360 --> 0:11:43.160 me a huge favor and got me a position in 0:11:43.240 --> 0:11:45.760 the what they referred to as the back office at 0:11:45.800 --> 0:11:49.760 City Bank. In nineteen eighty nine, and that was really 0:11:49.800 --> 0:11:55.400 the first time I'd say I was on a track 0:11:55.720 --> 0:11:59.480 that would begin to look more conventional, although obviously starting 0:11:59.679 --> 0:12:02.120 in these I was hard as a temp I eventually 0:12:02.160 --> 0:12:04.680 became a full time employee, and then I went into 0:12:04.679 --> 0:12:08.280 the credit training program at City Bank. But I will 0:12:08.280 --> 0:12:13.840 say right around that period I asked someone I worked 0:12:13.840 --> 0:12:17.160 with them at City Bank, and I was so impressed 0:12:17.400 --> 0:12:19.440 with how intelligent they were. And this will give you 0:12:19.440 --> 0:12:22.200 a sense of how clumsy I was still And we 0:12:22.240 --> 0:12:24.600 went out one night and I said something the effect 0:12:24.640 --> 0:12:28.880 of Jees, you're so smart. I would have thought you 0:12:28.880 --> 0:12:32.160 would have accomplished more by now in your life, which 0:12:32.200 --> 0:12:36.280 is a horrible, cringeworthy thing to say to someone. But 0:12:36.320 --> 0:12:38.480 he was so gracious taught me a lot in that 0:12:38.559 --> 0:12:41.160 moment because he was gracious about it, didn't get offended. 0:12:41.520 --> 0:12:44.000 And he said, you know, Harvey, you'll learn in your 0:12:44.040 --> 0:12:49.240 life careers are fifty percent luck, fifty percent skill. And 0:12:49.240 --> 0:12:51.120 that always stuck with me, buried because I don't know 0:12:51.160 --> 0:12:53.319 that it's fifty percent luck. But for me, I got 0:12:53.360 --> 0:12:55.600 to say, like, there are days it feels mostly ninety 0:12:55.600 --> 0:12:58.320 ten or ninety nine to one that it's luck. And 0:12:58.360 --> 0:13:03.959 I think along the way people, every time you're given responsibility, 0:13:04.000 --> 0:13:06.559 somebody's making a leap of faith giving you that responsibility. 0:13:07.200 --> 0:13:09.319 And along the way people did, whether it was at 0:13:09.320 --> 0:13:12.320 City Bank. Then I went to Goldman Sachs. I had 0:13:12.360 --> 0:13:19.560 some incredibly uh, some incredible experiences of Goman Sacks. I 0:13:19.640 --> 0:13:23.199 moved around quite a bit after leaving Goman Sacks in 0:13:23.200 --> 0:13:28.480 twenty eighteen. Ultimately, Carlisle called Carlisle calling, is luck? Right? 0:13:28.520 --> 0:13:30.199 It's just a random thing that I end up sitting 0:13:30.200 --> 0:13:32.800 here with you, and so I think that it's really. 0:13:32.600 --> 0:13:34.400 Hard to I'm going to pull out the yellow card 0:13:34.559 --> 0:13:38.920 and call on that, because lots of luck up to 0:13:39.000 --> 0:13:41.640 this point. But you're a Goldman for a while, and 0:13:41.679 --> 0:13:46.920 you're developing a reputation, you're improving what's already a very 0:13:47.760 --> 0:13:51.640 well oiled machine. When Carlile called you, it wasn't let's 0:13:51.720 --> 0:13:54.120 randomly call somebody and see if we can find a 0:13:54.160 --> 0:13:56.400 new CEO. They knew who you were. 0:13:57.320 --> 0:14:03.079 Yeah, that's true. I don't want to overweight the luck. 0:14:03.160 --> 0:14:03.319 Thing. 0:14:03.600 --> 0:14:05.120 People would say to me when I say that, Well, 0:14:05.160 --> 0:14:07.560 you can make your own look, and that's true to 0:14:07.600 --> 0:14:09.720 some extent. You can influence your luck through hard work. 0:14:09.840 --> 0:14:14.520 But okay, everybody in this room just by being here. 0:14:14.720 --> 0:14:19.320 You everyone here, there's prerequisites, right, you're all smart. Everybody's 0:14:19.360 --> 0:14:23.120 hard working, because that's like prerequisites, that's just table stake stuff. 0:14:24.960 --> 0:14:27.240 I do think luck and randomness play a lot in life. 0:14:27.840 --> 0:14:29.960 You know, I'm sixty one. I was born in nineteen 0:14:30.000 --> 0:14:34.400 sixty four. In my life, that's a really good time 0:14:34.440 --> 0:14:36.280 to be born. Like, I don't think you can not 0:14:36.400 --> 0:14:40.000 acknowledge some of these things. And so, but I will 0:14:40.040 --> 0:14:48.280 say my early experiences, if anything, I would say I 0:14:48.320 --> 0:14:52.440 was so insecure because I didn't get into college and 0:14:52.480 --> 0:14:55.360 I barely got out of high school. I think it 0:14:55.600 --> 0:15:03.000 just motivated fear, scared, insecure, and I think all that 0:15:03.120 --> 0:15:06.920 kind of compounded into feeling like, wow, I am alongside 0:15:06.920 --> 0:15:09.560 all these people who went to these extraordinary schools, and 0:15:09.560 --> 0:15:11.400 the only way I could compete, I kind of felt 0:15:11.480 --> 0:15:15.440 was to just work a lot. I always felt like 0:15:15.480 --> 0:15:20.440 that was my thing, and to this day, that's kind 0:15:20.440 --> 0:15:22.560 of what I think, although obviously I've had a set 0:15:22.600 --> 0:15:24.360 of experiences now which give me more confidence. 0:15:24.440 --> 0:15:29.040 So Rutgers to City to Goldman. The next question is 0:15:29.160 --> 0:15:32.600 what draws you to the private side of the markets. 0:15:32.680 --> 0:15:35.080 You could have done public fixed income, you could have 0:15:35.080 --> 0:15:37.480 done equities for the rest of the career. You made 0:15:37.480 --> 0:15:42.000 a hard pivot to private markets. Tell us about why 0:15:42.200 --> 0:15:44.120 and what that experience has been like. 0:15:45.160 --> 0:15:47.400 Well, after leaving Goldman, I was in a really unique 0:15:47.400 --> 0:15:49.760 position in my life because I was so fortunate that 0:15:49.760 --> 0:15:53.000 I didn't have to work right away, but because as 0:15:53.040 --> 0:15:55.360 you said, I had a nice resume, people knew with me, 0:15:55.400 --> 0:15:58.240 I got a lot of opportunities. None of them were 0:15:58.280 --> 0:16:01.920 compelling until Carlisle came. And Carlile was compelling for very 0:16:02.000 --> 0:16:05.640 very simple reasons. One, I knew the firm. They had 0:16:05.640 --> 0:16:08.560 been my client when I was at Golmen Sachs. We 0:16:08.600 --> 0:16:11.720 committed a lot of capital to all those big firms, 0:16:12.080 --> 0:16:13.920 So I knew the firm. I spent a lot of 0:16:13.960 --> 0:16:16.840 time with the founders. They're incredible people, David, Bill and Dan, 0:16:17.240 --> 0:16:21.680 both as professionals and as also just generous human beings 0:16:21.760 --> 0:16:27.320 and leaders. And then I knew the industry and the 0:16:27.440 --> 0:16:32.200 secular trends and cyclical trends in this industry in private 0:16:32.200 --> 0:16:36.720 capital are extraordinary, and they've been this way for well 0:16:36.720 --> 0:16:40.840 over twenty years. And so I knew the industry I 0:16:40.880 --> 0:16:44.640 knew Carlisle's rolling it and it was really too much 0:16:44.640 --> 0:16:45.200 to pass up. 0:16:45.600 --> 0:16:48.880 So I know David a little bit. I don't know 0:16:48.960 --> 0:16:52.160 the other co founders, and he is legitimately one of 0:16:52.200 --> 0:16:56.400 the most amazing people I ever met my entire life. 0:16:56.440 --> 0:16:59.520 And I've done, you know, five hundred and fifty of these. 0:17:00.080 --> 0:17:02.840 But let's bring this back to the private equity side. 0:17:02.880 --> 0:17:05.240 So that would be your favorite, this would be your second. 0:17:06.000 --> 0:17:09.400 I didn't say my favorite. I just remember leaving that 0:17:09.440 --> 0:17:15.200 conversation and saying, Jesus Christ, this guy every space he's in. 0:17:15.640 --> 0:17:20.879 He moves the needle in Congress, in markets, in philanthropy 0:17:21.000 --> 0:17:25.080 and sports, like he doesn't touch something and not leave 0:17:25.119 --> 0:17:27.720 it better than how he found it. Yeah, it's really 0:17:27.880 --> 0:17:29.960 it's inspirational, and I don't want to be I don't 0:17:29.960 --> 0:17:30.960 want to make this about David. 0:17:31.000 --> 0:17:31.600 It's about you. 0:17:31.640 --> 0:17:33.639 But you get to work with him. 0:17:33.800 --> 0:17:35.320 Yeah, every day. 0:17:35.080 --> 0:17:40.359 So you mentioned the private market side. We have interest 0:17:40.440 --> 0:17:43.280 rates that crash to zero in the early two thousands, 0:17:43.680 --> 0:17:48.360 then following the financial crisis, we get ZIRP for almost 0:17:48.400 --> 0:17:54.480 fifteen years. How does that environment lead to Carlisle, which 0:17:54.480 --> 0:17:58.360 hasn't always been almost half a trillion dollars. It started 0:17:58.400 --> 0:18:02.320 out at a much more modest size. How does the 0:18:02.359 --> 0:18:07.199 past twenty year market environment lead to Carlisle really becoming 0:18:07.880 --> 0:18:10.320 the eight hundred pound gorilla in the room. 0:18:10.680 --> 0:18:15.080 Yeah, so I think you mentioned some really key factors 0:18:15.280 --> 0:18:18.040 which I think are contributing. It's always going to be 0:18:18.040 --> 0:18:21.879 the case that whatever the market environment is, wherever interest 0:18:21.960 --> 0:18:24.520 rates are, it's going to be the case that that's 0:18:24.520 --> 0:18:28.080 a contributing factor to how markets evolve. I don't think 0:18:28.080 --> 0:18:31.639 that's the key driver. If you go back to two thousand, 0:18:31.720 --> 0:18:33.159 I'll get these numbers slightly wrong. I think there was 0:18:33.160 --> 0:18:36.120 something like sixty two hundred public companies. Now that number 0:18:36.160 --> 0:18:40.959 is closer to three thousand. This trend of public companies 0:18:43.000 --> 0:18:46.879 shrinking and private companies staying private for longer, this has 0:18:46.920 --> 0:18:49.439 been in place for decades. If you think about the 0:18:49.480 --> 0:18:53.720 evolution of capital broadly, and you go back to the 0:18:53.720 --> 0:18:55.880 fact that Carlisle was founded by David Bill and Dan 0:18:56.480 --> 0:18:59.720 They were literally driving past the Carlisle Hotel and decided 0:18:59.720 --> 0:19:02.880 to name at Carlisle in nineteen eighty seven. There really 0:19:03.000 --> 0:19:07.119 was the birth of private equity, which they were part of. 0:19:07.480 --> 0:19:10.840 And you had venture capital, so you had buyouts, and 0:19:10.880 --> 0:19:15.560 you had seed opportunities. What systematically has happened over the 0:19:15.600 --> 0:19:18.600 thirty plus year period and certainly from two thousand when 0:19:18.640 --> 0:19:22.920 you now have companies staying private, is the capital available 0:19:23.440 --> 0:19:26.879 has just continued to grow. So, whether it's direct lending, 0:19:27.000 --> 0:19:32.280 asset based finance, integration with insurance, the opportunity set and 0:19:32.320 --> 0:19:35.360 the capital providers have just continued to expand, whether it's 0:19:35.359 --> 0:19:39.640 pension funds now all of you participating in wealth. It's 0:19:39.680 --> 0:19:42.399 the capital that is creating the opportunity for companies to 0:19:42.400 --> 0:19:44.760 stay private. It's not as though companies woke up one 0:19:44.800 --> 0:19:46.639 day and said, geez, I wish there was private capital. 0:19:46.640 --> 0:19:49.240 I'd like to stay private. And so this evolution of 0:19:49.280 --> 0:19:51.600 the capital markets, I think is just part of a 0:19:51.600 --> 0:19:55.320 broader evolution. We didn't have ETFs back in the of 0:19:55.400 --> 0:19:57.840 such significance. If you went all the way back to 0:19:58.640 --> 0:20:00.920 nineteen eighty seven, I can remember two thousand, I think 0:20:01.119 --> 0:20:02.919 it costs you five cents or so to trade a 0:20:02.960 --> 0:20:05.600 share a stock. So this is all part of the 0:20:05.640 --> 0:20:09.840 evolution of the capital markets, and the trend to staying 0:20:09.920 --> 0:20:13.520 private is substantial. Now. Having said that, we took at 0:20:13.520 --> 0:20:16.240 Carlisle in the past six months, we took three companies public. 0:20:16.280 --> 0:20:18.320 We took Standard a Republic in the United States, which 0:20:18.359 --> 0:20:22.720 is an aerospace defense MRO, and that was the third 0:20:22.760 --> 0:20:25.639 largest IPO of the year. We did the largest private 0:20:25.640 --> 0:20:29.720 equity held IPO in India a few weeks ago, Hexaware, 0:20:31.400 --> 0:20:35.360 and then we did the largest ever privately held company 0:20:35.400 --> 0:20:38.679 IPO in Japan last year with Goaku. So the public 0:20:38.680 --> 0:20:42.320 markets are still a fantastic opportunity to provide capital, but 0:20:42.440 --> 0:20:45.800 the option to stay private for longer exists. But the 0:20:45.880 --> 0:20:49.320 capital that's coming in is creating the opportunity. Obviously, then 0:20:49.359 --> 0:20:50.560 you get this flywhee effect. 0:20:51.040 --> 0:20:53.680 And to put some numbers on at the famous Wilshire 0:20:53.760 --> 0:20:57.440 five thousand is about thirty four hundred stocks, right, Yeah, 0:20:57.240 --> 0:21:01.600 So let's talk about the different areas of opportunity. You 0:21:01.680 --> 0:21:05.199 guys are active in growth equity and private credit and 0:21:05.280 --> 0:21:08.679 private debt, of which there is a slight difference, and 0:21:08.760 --> 0:21:12.040 of course private equity. Tell us about the big growth 0:21:12.080 --> 0:21:16.560 areas that Carlisle sees as an opportunity, and tell the 0:21:16.640 --> 0:21:21.160 advisor sitting in the audience what the sort of outlook 0:21:21.280 --> 0:21:24.560 is for this space relative to what we've been seeing 0:21:24.800 --> 0:21:28.240 in certainly in public credit, and if you want to 0:21:28.240 --> 0:21:31.440 talk about public markets, you can. That's the cherry on top. 0:21:31.840 --> 0:21:34.840 Yeah. So I think again for everybody here, for the 0:21:34.880 --> 0:21:38.440 wealth advisors here, I don't do what you do. And 0:21:38.560 --> 0:21:41.360 as I said earlier, I was kind of uniquely bad 0:21:41.359 --> 0:21:43.359 at it back in nineteen eighty seven, and not that 0:21:43.359 --> 0:21:46.080 that was the same thing. But if you can't sell 0:21:46.160 --> 0:21:48.760 tax free municipal bonds at twelve percent tax free, you're 0:21:48.760 --> 0:21:50.040 pretty uniquely bad at something. 0:21:50.280 --> 0:21:52.720 Let me let me interrupt you. I have this vision 0:21:52.800 --> 0:21:56.040 of you cold calling people. Hey, it's Harvey Schwartz. Market's 0:21:56.080 --> 0:21:59.119 down twenty two percent today, great entry point. Can I 0:21:59.160 --> 0:21:59.960 buy you some stuff? 0:22:00.560 --> 0:22:03.800 Yeah, you did what you had to do. I think 0:22:03.840 --> 0:22:05.520 the most the most dials I ever made was five 0:22:05.560 --> 0:22:09.480 hundred and eight uh in a day with not a 0:22:09.520 --> 0:22:15.520 lot of yield. But I would say that just like 0:22:15.760 --> 0:22:17.919 certain stocks are not great for every client on the 0:22:17.920 --> 0:22:21.560 well side, and certain other forms of investment are not 0:22:21.600 --> 0:22:24.919 great for your your wealth clients, I think you have 0:22:24.960 --> 0:22:26.800 to first make a determination about whether or not this 0:22:26.880 --> 0:22:28.400 is appropriate for your client and where does it fit 0:22:28.440 --> 0:22:33.679 into your toolkit. I think that there is a really 0:22:33.760 --> 0:22:37.760 unique role, whether it's in asset based finance, which is 0:22:37.760 --> 0:22:41.960 a very fast growing section of the marketplace. We did 0:22:42.000 --> 0:22:46.679