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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: I'm Barry Ridhlts. You're listening to Masters in Business on

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Speaker 2: Bloomberg Radio. My extra special guest today is Jean Eric Salata.

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Speaker 2: He is chair of the QT Group, the largest alternative

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Speaker 2: manager outside of the US. They manage over three hundred

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Speaker 2: and sixteen billion dollars. Previously, he helped set up the

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Speaker 2: Bearings Private Equity Asia Group and built it into one

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Speaker 2: of Asia's premiere private equity platforms. With no further adoop,

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Speaker 2: John Eric Salado, Welcome to Bloomberg.

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Speaker 3: Thank you, Barry. It's great to be here. It's great

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Speaker 3: to have you.

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Speaker 2: I've been looking forward to this conversation for a while.

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Speaker 2: Before we get to EQT, You've a really interesting background

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Speaker 2: and I want to dive into that a little bit.

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Speaker 2: You grow up in Chile, you go to the Wharton

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Speaker 2: School at University of Penn to get a bachelor's in

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Speaker 2: finance and economics. Was investing always the career plan?

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Speaker 3: Well?

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Speaker 4: I yes, investing was always the career plan. That's not

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Speaker 4: how I ended up in Asia, but the idea and

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Speaker 4: going to Wharton and becoming an investor was something I

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Speaker 4: always wanted to do since I was a young boy.

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Speaker 4: I remember reading a lot of biographies when I was

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Speaker 4: a kid of business people and being very intrigued by that.

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Speaker 4: I remember having my first paper delivery route when I

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Speaker 4: was like ten or eleven years old and really enjoying

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Speaker 4: the idea of making money, and then actually started investing

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Speaker 4: that money as a young kid in the stock market

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Speaker 4: as well, and kind of understanding how that worked. And

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Speaker 4: then when I ended up at Wharton undergraduate and studying

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Speaker 4: finance and management, I got very intrigued with global business

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Speaker 4: outside the US. I come from an international background.

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Speaker 3: My family.

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Speaker 4: We grew up in South America. My grandparents actually came

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Speaker 4: from Eastern Europe and were refugees that ended up in

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Speaker 4: South America. Some generation a generation, we've been moving around

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Speaker 4: quite a bit. I always felt like I had a

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Speaker 4: quite a different perspective on life and the world than

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Speaker 4: a lot of the people I was at school with,

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Speaker 4: and so I was interested in pursuing that. And by

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Speaker 4: as luck would have it or fate would have it,

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Speaker 4: I ended up meeting my girlfriend at the time who's

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Speaker 4: now my wife, who's from Hong Kong, and I ended

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Speaker 4: up moving there.

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Speaker 3: Right after I graduated.

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Speaker 4: A year after I graduated from college and ended up

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Speaker 4: really building my career in Asia as a result of that.

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Speaker 2: And that was Hong Kong before the handover, so Chile

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Speaker 2: Hong Kong. You started being as a consultants, end up

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Speaker 2: everywhere from Sydney to Boston and then back to Hong Kong.

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Speaker 2: Tell us a little bit about that global experience. How

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Speaker 2: has that changed how you look at the world of investing.

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Speaker 4: Yeah, I sort of have always felt a little bit

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Speaker 4: like an outsider in the way I look at things.

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Speaker 4: I never felt like I was exactly part of the

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Speaker 4: community or the sort of the.

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Speaker 3: Consensus view of things.

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Speaker 4: I was always thinking about things a little bit more differently,

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Speaker 4: I guess given the background. I was always comparing things

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Speaker 4: when I was growing up in the US, I was

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Speaker 4: always comparing things in the US to the way things

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Speaker 4: were in Chile and saying, Oh, this is different or

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Speaker 4: that's different. Then when I moved to Hong Kong, I

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Speaker 4: had the same perspective. I was thinking, Wow, there's a

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Speaker 4: lot that I see happening all my friends working on

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Speaker 4: Wall Street or in private equity firms in the late

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Speaker 4: eighties early nineties, that's not yet happening here in Hong Kong.

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Speaker 3: It felt like there was a gap. It felt like

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Speaker 3: there was a gap.

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Speaker 4: There, and that always intrigued me and got me motivated

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Speaker 4: and interested in thinking about starting something new that would

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Speaker 4: sort of try to take advantage of it, or take

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Speaker 4: advantage of that opportunity created by that gap. Of what

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Speaker 4: eventually made me coming to Asia, that's already happening in

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Speaker 4: the US, and that's sort of what led me to

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Speaker 4: eventually leave insulting, get into private equity in the early nineties,

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Speaker 4: which was really very early in Asian in in Asian

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Speaker 4: context in the private equity industry, and from there sort

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Speaker 4: of to start building the business.

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Speaker 2: So you leave Bain was the next up AIG Global

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Speaker 2: Investment there there? Did you help set up their pe

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Speaker 2: arm or was that already up and running.

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Speaker 4: No, that AIG was essentially an insurance business.

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Speaker 3: AIG.

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Speaker 4: Some of your listeners might recall Hank Greenberg, who's sort

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Speaker 4: of a legend really kind of started He actually didn't

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Speaker 4: start that business, but was really the founder that grew

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Speaker 4: the business beyond the founder CV Star's initial starting of

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Speaker 4: the business in Shanghai of ball places, and that became

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Speaker 4: a large global insurance company. And in those days in Asia,

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Speaker 4: there really wasn't a private equity industry, but there were

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Speaker 4: insurance companies like AIG that had long dated liabilities and

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Speaker 4: they needed to find long dated assets, and so you

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Speaker 4: had stock market and fixed income and so on. But

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Speaker 4: in the private markets there wasn't really a fund to

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Speaker 4: invest in per se, so they started making their own

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Speaker 4: investments off their balance sheet into companies to match their

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Speaker 4: long dated liabilities. And so it was really working for

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Speaker 4: AIG in their internal private equity group that got me

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Speaker 4: started in the industry.

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Speaker 2: Foundational experience at AIG, that's really in private equity. That's

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Speaker 2: a sentence you don't hear of that often.

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Speaker 1: Yeah, it was.

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Speaker 3: It was early days.

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Speaker 4: It was interesting because you know, the whole region was

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Speaker 4: really starting to boom. It was the golden period of globalization,

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Speaker 4: you know, with the emergence of not just China, but

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Speaker 4: Southeast Asia, Thailand, Indonesia, Taiwan, Korea, all these markets were

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Speaker 4: starting to really develop and industrialize and there was a

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Speaker 4: lot of requirement for capital for growth, and so we

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Speaker 4: were really growth investors in those days, putting money to

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Speaker 4: work behind companies and helping them to grow.

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Speaker 2: And then you moved from investor to operator you as

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Speaker 2: executive president. You run finance for Shoeing Steel that's a

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Speaker 2: giant Hong Kong industrial What was that experience.

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Speaker 4: Like, Yeah, that actually that happened before I left to

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Speaker 4: do the private exit, So it was vain then shoeing,

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Speaker 4: and then and then ai G. But the Shoeing experience, it's, uh,

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Speaker 4: it's a part of my background that is a little

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Speaker 4: bit different because it's really it's a family business that

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Speaker 4: is an industrial company, very traditionally run. It's actually my

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Speaker 4: wife's family business. So yeah, it's it's really uh, it

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Speaker 4: was a very different experience.

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Speaker 1: I went from I can imagine, Yes, I went from

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Speaker 1: baning company, you know, sort of business schools down you know,

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Speaker 1: everybody has similar backgrounds, very analytical, to the opposite end

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Speaker 1: of the spectrum, which is it's a family business.

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Speaker 4: Everybody who's in management is related to each other. And

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Speaker 4: then uh, you know, you're making decisions based on sort

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Speaker 4: of traditional ways of doing things.

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Speaker 2: But this isn't a small little family dry claian Er.

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Speaker 2: It's a big business, giant conglomerate. It was a.

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Speaker 4: Sizable business and it was a good experience for me

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Speaker 4: because it sort of helped me shape in the very

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Speaker 4: formative years of my career, an appreciation for both.

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Speaker 3: Sides of the spectrum.

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Speaker 4: On the one hand, you have the need to be analytical, rigorous,

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Speaker 4: understand global trends and sort of the way you look

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Speaker 4: at things as a business school student. On the other hand,

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Speaker 4: if you're going to do business in Asia, you have

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Speaker 4: to be a little more entrepreneurial. You have to listen

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Speaker 4: to your instinct. You have to be able to develop

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Speaker 4: relationships with people, because ultimately, the decision makers in that

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Speaker 4: part of the world, a lot of them have those

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Speaker 4: sorts of backgrounds, and so you need to be able

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Speaker 4: to understand how they think. And so that was a

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Speaker 4: very valuable experience during my formative years. But I kind

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Speaker 4: of came to the view that I didn't really want

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Speaker 4: to spend the rest of my career in that sort

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Speaker 4: of a setup, and so I applied to business school,

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Speaker 4: and I got into business school. I got into Harvard

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Speaker 4: Business School actually, and I was about to start at Harvard.

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Speaker 4: I literally was there registered. I'm actually in the picture book,

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Speaker 4: ready to go. And that's when I got the job

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Speaker 4: offer to come back and work for this private equity

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Speaker 4: division of AIG, which I decided ultimately that's really what

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Speaker 4: I wanted to do rather go back to school again,

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Speaker 4: having gone to undergraduate for a business degree already, and

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Speaker 4: so I decided to defer my business school go back

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Speaker 4: to work in Asia in private equity, and ultimately I

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Speaker 4: actually never ended up really coming back to school.

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Speaker 2: So after AIG, you helped launch a regional Asian private

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Speaker 2: equity program for Bearing Private Equity Partners, a UK based bank. Right, yeah,

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Speaker 2: I have the timeline, right, So I'm fascinated nineteen ninety seven.

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Speaker 2: What was the investment landscape in Asia like in the nineties,

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Speaker 2: Was that a very underappreciated set of opportunities or had

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Speaker 2: people started to sniff out, hey, this area is going

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Speaker 2: to be boom.

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Speaker 4: It was a very very un volatile period actually, if

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Speaker 4: you recall was going on at the time. So two

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Speaker 4: things happened in nineteen ninety five. Nick Leeson, this is

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Speaker 4: just around the time that I was joining Bearing Private Equity.

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Speaker 4: Nick Leeson, who was a name that some of your

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Speaker 4: listeners mare may recognize, others may not. He brought down

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Speaker 4: this three hundred.

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Speaker 3: Year old broke Bearings back.

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Speaker 4: He broke the bank out of Singapore actually trading Japanese

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Speaker 4: stock futures and kind of covering up his losses, which

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Speaker 4: eventually brought the.

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Speaker 3: Whole bank down.

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Speaker 4: It was a you know, three hundred year old bank

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Speaker 4: and one of the most prominent firms. So what ended

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Speaker 4: up happening is that the Dutch firm Ing took over

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Speaker 4: Bearings Famously for one pound and assumed all their liabilities

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Speaker 4: and they took it over. This is around the time

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Speaker 4: that I had joined, and you know, at the time,

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Speaker 4: I remember thinking this is a very unsettling this is

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Speaker 4: you know, I don't know what I'm going to do.

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Speaker 3: I was very worried.

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Speaker 4: I just decided to leave AIG and join this new

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Speaker 4: company bearing private equity. In hindsight, sitting here today, I

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Speaker 4: can say it's probably one of the best things that

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Speaker 4: ever happened to me, was to be able to step

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Speaker 4: into a situation that was going through a lot of change.

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Speaker 4: And I think it is an important lesson in life

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Speaker 4: actually that there are these times when you go through

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Speaker 4: There's serendipity number one, so luck. There's also the fact

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Speaker 4: that you're often thrust into situations you don't expect, and

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Speaker 4: it kind of boils down to how you end up

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Speaker 4: responding to them and looking for the best possible outcomes

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Speaker 4: or the best way out of a situation can sometimes

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Speaker 4: lead to huge opportunities, which is what happened here because

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Speaker 4: that confusion of the takeover by IG of Bearings resulted

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Speaker 4: in Bearings essentially figuring that they didn't need.

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Speaker 3: To have some of these non core businesses.

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Speaker 4: And so I approached the new Dutch owners and asked

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Speaker 4: them if it was okay if we spun our business out.

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Speaker 4: At the time, which we did, it was a very

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Speaker 4: small business. It was a twenty five We had twenty

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Speaker 4: five million dollars of assets under management, which even in

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Speaker 4: those days was not a lot of mine, and we

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Speaker 4: were really just getting started. And they agreed, and so

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Speaker 4: we ended up establishing an independent, small private equity business

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Speaker 4: called Bearing Private Equity Asian.

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Speaker 3: So kept the name. We kept the name BPA.

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Speaker 2: There was this tremendous transition from what was essentially a

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Speaker 2: startup to what eventually became a pretty substantial institution. What

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Speaker 2: was that like.

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Speaker 4: Initially we were starting off and again it was nineteen

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Speaker 4: ninety seven, ninety six, ninety seven, so if he recalled

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Speaker 4: nineteen ninety seven was actually the Asian Financial crisis, as

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Speaker 4: I referred to which was a terrible period of huge

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Speaker 4: currency devaluations, starting with a ruble in Russia, but then

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Speaker 4: sort of a contagion effect throughout.

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Speaker 2: The ruble was worse the following year with long term

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Speaker 2: capital management, if my memory is great. So the Asian

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Speaker 2: contagion was the tie Bot crisis.

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Speaker 4: And it was it was the Indonesian sort of high

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Speaker 4: yield market as well that blew up. We're basically borrowing

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Speaker 4: dollars because it was cheaper to do so, using that

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Speaker 4: money to then invest in their businesses in Asia, thinking

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Speaker 4: that they could make the spread and kind of capture that.

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Speaker 2: As long as the currency stay stable, which.

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Speaker 3: Is okay, but then it isn't till it isn't right.

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Speaker 4: So that's what happened, and so that blew out and

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Speaker 4: it caused a tremendous financial crisis across the whole region.

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Speaker 4: And this is in the middle of when we were

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Speaker 4: getting started. So I remember we're writing the first PPM,

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Speaker 4: the first private placement memo to go raise capital, and

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Speaker 4: the whole story was in ninety six was about growth

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Speaker 4: in Asia, the growth story, and halfway through that writing

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Speaker 4: the PPM, we had to basically change the PPM and

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Speaker 4: change the strategy to become more of a distress strategy

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Speaker 4: on how we're going to capitalize on the dislocation in

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Speaker 4: Asia to invest in great companies that have bad balance sheets,

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Speaker 4: which is sort of what we did with that first

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Speaker 4: twenty five million that we started with, because what happened

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Speaker 4: was that Ing gave us that seed capital to get

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Speaker 4: going with, which was the twenty five million. They were

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Speaker 4: supposed to give us three hundred but it ended up

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Speaker 4: not coming through, so we started with twenty five.

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Speaker 2: Why is it that the indications of interest and the

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Speaker 2: actual cash there's such as a multiple between the two.

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Speaker 4: What happened in my case is that there were supposed

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Speaker 4: to be three of us that were coming across to

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Speaker 4: start the business. There was two very senior guys from

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Speaker 4: AIG actually that were poached by Bearings to start the

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Speaker 4: business for them in Asia, and they asked me, the

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Speaker 4: young kid who was doing all the number crunching, to

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Speaker 4: join them to do the actual work. And I said,

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Speaker 4: I'd be delighted to because it's such an exciting entrepreneurial opportunity.

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Speaker 3: You know, here I am.

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Speaker 4: A young junior analyst and I get a chance to

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Speaker 4: be potentially a partner in this startup, so I thought,

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Speaker 4: I raised my hand. As we were about to get started,

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Speaker 4: the two senior guys got a counter offer from Hank Greenberg,

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Speaker 4: who called them up and say, hey, you guys are

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Speaker 4: too important.

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Speaker 3: We want you to stay.

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Speaker 4: Here's all this money and equity and that, you know,

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Speaker 4: to convince you to stay. But he didn't make me

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Speaker 4: a counter offer. He just cut me loose. So those

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Speaker 4: guys accepted the counter offer. I was there, left on

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Speaker 4: my own, and I went back to the IG folks

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Speaker 4: and I said, here, I am, I'm ready to do this.

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Speaker 4: They said, well, you're a little young and inexperience. It's

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Speaker 4: not what we're expecting. We're going to slash the capital

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Speaker 4: that we commit to this from three hundred to twenty five,

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Speaker 4: less than ten percent, said I said. That's good enough

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Speaker 4: for me. I said, I'll take that. That sounds good.

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Speaker 4: So we started with twenty five and we did five

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Speaker 4: deals of five million each, and it turned out that

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Speaker 4: because of the cycle where we were, we were lucky

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Speaker 4: to be able to buy in at good prices and

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Speaker 4: we bought some interesting businesses.

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Speaker 2: Huh, that sounds really that got us started. Basically, Yeah,

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Speaker 2: that sounds really really quite fascinating. So BPA was in China, India,

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Speaker 2: Southeast Asia, Japan, Korea. Here's the thing that I'm fascinated. Okay,

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Speaker 2: So maybe New York is different than Florida, is different

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Speaker 2: than Texas, is different than California, but we all speak

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Speaker 2: the same language more or less. It's the same laws,

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Speaker 2: it's the same regulatory structure. When you're working throughout Asia,

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Speaker 2: this different legal system, This is a different cultural dynamic,

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Speaker 2: they're different political dynamics. How do you build relationships, how

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Speaker 2: do you build a knowledge base and navigate? Like is

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Speaker 2: from an American perspective? Are those countries more similar than

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Speaker 2: we imagine? Or am I teeing this up correctly? Each

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Speaker 2: one is its own, independent, unique region.

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Speaker 4: You're absolutely right about that, and that actually is the

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Speaker 4: key I think to what we've been able to achieve

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Speaker 4: over three decades, was that overcoming those barriers, because ultimately

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Speaker 4: people think of Asia, they call it Asia, but it's

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Speaker 4: really a first of all geographic, it's a huge, huge expansive.

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Speaker 4: You know, from Tokyo to Sydney, it's like a twelve

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Speaker 4: hour flight, you know, and from you know, from even

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Speaker 4: from Hong Kong all the way to India, it's still

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Speaker 4: a pretty long distance and culturally, you're talking about a

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Speaker 4: very significant difference in the local culture, the language, the

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Speaker 4: ways of doing business. So what we did initially was,

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Speaker 4: you know, and we were actually criticized for this in

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Speaker 4: the early days because in those days people just did single.

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Speaker 3: Country funds for that very reason.

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Speaker 4: You had a China fund, you had you know, you

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Speaker 4: had a sort of Japan fund and Korea fund. And

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Speaker 4: what we set out to do was to say, okay,

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Speaker 4: we're going to create a regional investment program. People looked

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Speaker 4: at me and said, what do you know about investing

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Speaker 4: in Japan? Or like, what do you know about India?

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Speaker 4: You're not even from Asia. And so what I early

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Speaker 4: on appreciate it, and this has been an important lesson

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Speaker 4: in my career is that actually being a good investor

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Speaker 4: is very important for what we do in our industry.

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Speaker 4: But if you want to build a company, which was

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Speaker 4: always my ambition, if you want to build a business

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Speaker 4: out of it, you need to actually build a team,

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Speaker 4: not just be a good investor. Being a good investor

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Speaker 4: is kind of prerequisite to be in our industry, but

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Speaker 4: beyond that, it's really about building a team.

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Speaker 3: And so I was lucky.

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Speaker 4: Enough to meet and to and to bring on board

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Speaker 4: some great partners early on, very diverse backgrounds. So you know,

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Speaker 4: we have people even to this day and in those

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Speaker 4: days from each of these markets. So you know, we

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Speaker 4: had great partners from China, from Taiwan on our team

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Speaker 4: that we hired early on. We had a very good

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Speaker 4: team in India on the ground in Mumbai. We call

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Speaker 4: it now local with locals, where you have local teams

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Speaker 4: in each market. In two thousand and five, we opened

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Speaker 4: up an office in Japan and we hired a great

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Speaker 4: team in Japan of great people there. As we're building

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Speaker 4: the team a you needed to have people from those

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Speaker 4: markets that understood those markets. But the next question is

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Speaker 4: how do you stitch it all together? You know, how

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Speaker 4: do you create that common thread? And that comes down

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Speaker 4: to culture and building a culture of like minded people.

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Speaker 4: And so I started to really also gain a huge

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Speaker 4: appreciation for the importance of culture in a business. And

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Speaker 4: that's something by the way that EQT has I think,

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Speaker 4: really excelled in globally. And one of the reasons I

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Speaker 4: was ultimately attracted to EQT in combining our business with

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Speaker 4: EQT four or five years ago was that Connie Johnson,

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Speaker 4: the founder of EQT, early on with the Wallenberg's back

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Speaker 4: backing realize that culture ultimately drives performance in an investment

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Speaker 4: organization like ours. So built an organization with tremendous culture,

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Speaker 4: and our culture was actually somewhat similar. So we were

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Speaker 4: able to bring the two cultures together and the cultural

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Speaker 4: fit ended up being what made that merger so successful.

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Speaker 4: But going back to building the Asia business, building the

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Speaker 4: team on the ground, building the common culture, and then

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Speaker 4: it was sort of how do we institutionalize this instead

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Speaker 4: of just doing deals here, doing deals there, how do

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Speaker 4: we create a unified, systematic approach? And this is where

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Speaker 4: my main days sort of came in of thinking, let's

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Speaker 4: come up with some constructs about how we think about

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Speaker 4: capital allocation, how we think about diversification, how do we

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Speaker 4: think about macro, how do we think about sector trends,

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Speaker 4: how do we think about our investment committee process? How

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Speaker 4: do we drive due diligence systematic due diligence in every

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Speaker 4: market so we have quality control in each market.

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Speaker 3: It's not just random.

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Speaker 4: Deal makers doing things the way that they want to

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Speaker 4: do them on the ground, and so pulling all that together,

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Speaker 4: which it took a lot of time. I'm making it.

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Speaker 4: I'm shortening it here, but you know, there was a

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Speaker 4: lot of ups and downs. There, a lot of mistakes,

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Speaker 4: a lot of setbacks, but eventually we got there and

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Speaker 4: we find our strategy over the years and we created

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Speaker 4: something that's actually quite hard to replicate, which is this

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Speaker 4: regional platform delivering consistent outcomes with a great team of

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Speaker 4: consistent of people that have been with us a long

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Speaker 4: time and that have a similar approach to underwriting and

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Speaker 4: ultimately great performance. And so all that going from twenty

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Speaker 4: five million where we ended up. By the time we

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Speaker 4: did the deal with EQT, we had twenty five billion

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Speaker 4: under management over the spans of what was twenty five

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Speaker 4: years of billion.

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Speaker 2: The business coming up, we continue our conversation with Jean

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Speaker 2: Eric Salata, chairman of EQT Group, discussing the combination of

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Speaker 2: BPA and EQT. I'm Barry Ridaults. You're listening to Masters

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Speaker 2: in Business on Bloomberg Radio. I'm Barry Ridolts. You're listening

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Speaker 2: to Masters in Business on Bloomberg Radio. My extra special

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Speaker 2: guest this week is Jean Eric Salata. He is chair

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Speaker 2: of EQT Group, one of the largest alternative managers outside

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Speaker 2: of the US, they managed three hundred and sixteen billion dollars.

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Speaker 2: So let's talk a little bit about how this all came.

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Speaker 2: About twenty twenty two, you merge BPA with EQT. That

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Speaker 2: was a seven billion dollar deal that followed about twenty

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Speaker 2: five years of independence. What led to that decision to merge?

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Speaker 2: What could EQT offer that BPA couldn't build on its own?

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Speaker 1: Yeah?

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Speaker 4: I think what I started to sense in about say

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Speaker 4: twenty fifteen, was that the industry was changing. Our industry

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Speaker 4: was changing global. You started to see global firms moving

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Speaker 4: into Asia. You started to see some firms starting to

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Speaker 4: go public. You started to see multi product firms developing

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Speaker 4: beyond just a single product, single asset class scale. And

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Speaker 4: I realized that although we were doing very well and

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Speaker 4: we're very successful and growing, if we wanted to make

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Speaker 4: this a multi generational business that's going to continue to thrive,

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Speaker 4: we wanted to be part of this industry consolidation, put

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Speaker 4: this trend towards scale, rather than to be sort of,

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Speaker 4: you know, pushed aside by it. And that's when I

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Speaker 4: started thinking, what are our options? I mean, one option

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Speaker 4: was for us to try to expand beyond Asia and

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Speaker 4: to develop our business outside of the region. That was

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Speaker 4: going to be pretty difficult at this stage because the

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Speaker 4: business is coming so large and entrenched globally. And then

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Speaker 4: I started looking at ways of working with others, and

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Speaker 4: that's when I met EQT really through their own IPO

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Speaker 4: that they had done at the time gone public in

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Speaker 4: twenty eighteen twenty nineteen, and I was curious about that,

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Speaker 4: and I saw I went to speak to them about

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Speaker 4: how they had done that, and we started talking, and

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Speaker 4: you know, one thing led to another, and by the

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Speaker 4: end of this conversation, it became evident to all of

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Speaker 4: us sitting around the table that actually, there's something here

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Speaker 4: that could be quite powerful if we were to come

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Speaker 4: bring the businesses together.

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Speaker 2: You mentioned earlier how important culture is to performance in

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Speaker 2: an investment world. I would imagine that a Swedish firm

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Speaker 2: like EQT and essentially a regional Asian firm like BPA,

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Speaker 2: you would imagine those are very different cultures and there's

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Speaker 2: going to be a challenge integrating the two of them.

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Speaker 2: What was your experience like trying to get all the

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Speaker 2: horses pouring in the same direction.

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Speaker 4: Yeah, I think initially you could imagine that would be

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Speaker 4: the case, but as it turns out.

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Speaker 3: I think a few things here.

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Speaker 4: First of all, started off as a Swedish firm, but

440
00:23:02,280 --> 00:23:04,600
Speaker 4: it really by the time we met had already become

441
00:23:04,640 --> 00:23:08,720
Speaker 4: a much more global business. So first Swedish, then European,

442
00:23:09,359 --> 00:23:12,720
Speaker 4: expanding into Europe and then expanding into the US. Had

443
00:23:12,760 --> 00:23:17,200
Speaker 4: some presence in Asia, not much. Secondly, EQT is backed

444
00:23:17,240 --> 00:23:20,440
Speaker 4: by the Wallenberg family. The Wallenberg family is a sixth

445
00:23:20,560 --> 00:23:24,439
Speaker 4: generation family from Sweden that has a history of really

446
00:23:24,640 --> 00:23:31,199
Speaker 4: doing business globally. Investors in Ericsson, Electroluxe, SOB, many of

447
00:23:31,200 --> 00:23:35,320
Speaker 4: the big Swedish companies Astrozeneca are backed by the Wallenberg family,

448
00:23:35,359 --> 00:23:37,440
Speaker 4: and so they have a very global mindset, I would say,

449
00:23:37,440 --> 00:23:39,160
Speaker 4: in the way they think about doing business.

450
00:23:38,840 --> 00:23:40,440
Speaker 3: Globally and culturally.

451
00:23:41,480 --> 00:23:43,399
Speaker 4: Then I think the other aspect here is there's a

452
00:23:43,440 --> 00:23:47,320
Speaker 4: difference I think between a European firm like EQT and

453
00:23:47,359 --> 00:23:50,960
Speaker 4: say American firms. The European firms already are thinking in

454
00:23:51,040 --> 00:23:54,560
Speaker 4: terms of well, every country is different. You've got you know,

455
00:23:54,840 --> 00:23:57,960
Speaker 4: the Nordics are different than Germany, which is different than France,

456
00:23:58,000 --> 00:24:00,679
Speaker 4: which is different than Southern Europe. And so when they

457
00:24:00,720 --> 00:24:03,600
Speaker 4: come to Asia they have I think a heightened sense

458
00:24:03,600 --> 00:24:07,680
Speaker 4: of appreciation for the diff cultural differences within Asia, and

459
00:24:08,040 --> 00:24:09,679
Speaker 4: you know, I think I think that to me was

460
00:24:09,720 --> 00:24:12,639
Speaker 4: really important that they understand that within Asia, Japan is

461
00:24:12,720 --> 00:24:14,920
Speaker 4: very different from India, and India is very different from China,

462
00:24:15,280 --> 00:24:17,600
Speaker 4: and so I felt almost like there was a kindred

463
00:24:17,680 --> 00:24:20,320
Speaker 4: spirit there and understanding that each country, each region, the

464
00:24:20,359 --> 00:24:23,680
Speaker 4: cultures really matter. Then I would say that if you

465
00:24:23,720 --> 00:24:25,720
Speaker 4: look at the histories of the firm, we're both about

466
00:24:25,720 --> 00:24:28,359
Speaker 4: thirty years old at the time, we both had our

467
00:24:28,440 --> 00:24:30,480
Speaker 4: ups and downs, we both kind of built the business

468
00:24:30,480 --> 00:24:33,119
Speaker 4: from a founder of Connie and myself, and you know,

469
00:24:33,200 --> 00:24:36,800
Speaker 4: I think there was a lot of common history, shared

470
00:24:36,960 --> 00:24:40,400
Speaker 4: history there, and ultimately a point boiled down to the

471
00:24:40,880 --> 00:24:44,040
Speaker 4: i'd say, the chemistry of the senior team, but then

472
00:24:44,119 --> 00:24:47,520
Speaker 4: ultimately the culture throughout, and I felt very comfortable with it,

473
00:24:47,560 --> 00:24:49,639
Speaker 4: and we did some spend some time together, meeting with

474
00:24:50,040 --> 00:24:53,200
Speaker 4: the team members, meeting with each other, and we ended

475
00:24:53,240 --> 00:24:55,240
Speaker 4: up feeling like this was going to be a great fit.

476
00:24:55,560 --> 00:24:58,159
Speaker 4: Still taking a chance and coming and bringing the business together.

477
00:24:58,560 --> 00:25:01,960
Speaker 4: But having done it now been together now for nearly

478
00:25:02,000 --> 00:25:04,080
Speaker 4: four years, I can tell you it's been a huge success.

479
00:25:04,320 --> 00:25:06,560
Speaker 4: And it really boils down to the fact that the people,

480
00:25:06,600 --> 00:25:10,640
Speaker 4: the cultural fit was very strong. Maybe the good time

481
00:25:10,680 --> 00:25:13,760
Speaker 4: to talk about the values also of EQT, which are

482
00:25:13,800 --> 00:25:15,800
Speaker 4: similar to the values we had at Bearing Private Equity

483
00:25:15,840 --> 00:25:18,159
Speaker 4: at the time. You know, there's some key values that

484
00:25:18,240 --> 00:25:20,800
Speaker 4: EQT has. Number one, it's high performing, which is, you know,

485
00:25:20,880 --> 00:25:22,479
Speaker 4: something that I think most people in the industry are

486
00:25:22,480 --> 00:25:25,560
Speaker 4: going to focus on. But beyond that, it's also we

487
00:25:25,600 --> 00:25:29,639
Speaker 4: focus a lot on transparency, We focus on being informal,

488
00:25:30,080 --> 00:25:33,600
Speaker 4: we focus on being entrepreneurial, and we have another fifth value,

489
00:25:33,600 --> 00:25:36,320
Speaker 4: which is respectful. And if you take all those as

490
00:25:36,320 --> 00:25:38,600
Speaker 4: a package, you know, what you start to sense is

491
00:25:38,600 --> 00:25:40,760
Speaker 4: the sort of people that end up coming to EQT

492
00:25:40,920 --> 00:25:45,320
Speaker 4: staying at EQT. It's not the typical deal maker, kind

493
00:25:45,320 --> 00:25:47,600
Speaker 4: of Wall Street type of deal maker that you get

494
00:25:48,520 --> 00:25:52,639
Speaker 4: in some of our parts of our industry. And I

495
00:25:52,680 --> 00:25:55,679
Speaker 4: think that really appealed to the kind of makeup of

496
00:25:55,720 --> 00:25:58,720
Speaker 4: our firm at the time. You know, having that really

497
00:25:58,720 --> 00:26:03,080
Speaker 4: informal interaction with people that's a little bit of a

498
00:26:03,080 --> 00:26:05,680
Speaker 4: Nordic trade. I would say that this lack of hierarchy.

499
00:26:06,800 --> 00:26:08,159
Speaker 4: You know, you take a look at Connie, he's the

500
00:26:08,160 --> 00:26:11,640
Speaker 4: founder of the firm. He's really opened up the ownership

501
00:26:11,640 --> 00:26:13,679
Speaker 4: of the firm early to all the partners of the firm.

502
00:26:14,040 --> 00:26:16,360
Speaker 4: The fact that he was even open to combining with

503
00:26:16,400 --> 00:26:20,399
Speaker 4: my old business, in a sense, diluting even further on

504
00:26:20,480 --> 00:26:23,359
Speaker 4: a fairly large transaction that as you mentioned, you know,

505
00:26:23,480 --> 00:26:26,440
Speaker 4: that speaks to this kind of expansive view of we're

506
00:26:26,440 --> 00:26:28,920
Speaker 4: trying to build an institution here. It's not about any

507
00:26:28,920 --> 00:26:31,800
Speaker 4: one individual, it's not about sort of creating a legacy

508
00:26:31,840 --> 00:26:34,000
Speaker 4: of any one individual. It's about creating a business that's

509
00:26:34,000 --> 00:26:36,520
Speaker 4: going to last. So that sort of mindset, I think

510
00:26:36,560 --> 00:26:38,679
Speaker 4: really appealed to me and felt like the kind of

511
00:26:38,680 --> 00:26:40,439
Speaker 4: place that was a good home for the company that

512
00:26:40,480 --> 00:26:42,439
Speaker 4: we had built as a partnership prior to that.

513
00:26:43,080 --> 00:26:45,920
Speaker 2: Really really interesting. Let's talk a little bit about how

514
00:26:45,960 --> 00:26:50,960
Speaker 2: the capital has invested. Sixty five percent of eqt's capital

515
00:26:51,200 --> 00:26:54,240
Speaker 2: is in Europe and Asia. How do you think about

516
00:26:54,560 --> 00:26:58,240
Speaker 2: geographic diversification. It's always a challenge.

517
00:26:59,280 --> 00:27:01,880
Speaker 4: I think diverse vacation is becoming more and more top

518
00:27:01,920 --> 00:27:04,719
Speaker 4: of mind for global investors, particularly when we talk to

519
00:27:04,800 --> 00:27:09,120
Speaker 4: our institutional investors. Even in the private world channels. You're

520
00:27:09,160 --> 00:27:13,080
Speaker 4: starting to get a sense that people feel overly concentrated,

521
00:27:13,119 --> 00:27:17,280
Speaker 4: over extended, maybe in US assets not to say that

522
00:27:17,400 --> 00:27:19,520
Speaker 4: US assets are not attractive or that they don't have

523
00:27:19,640 --> 00:27:23,080
Speaker 4: great prospects, which they do. But you know, having eighty

524
00:27:23,119 --> 00:27:25,280
Speaker 4: five ninety percent of your assets tied into a market

525
00:27:25,359 --> 00:27:29,640
Speaker 4: that's already highly concentrated is becoming a little bit uneasy

526
00:27:29,680 --> 00:27:32,480
Speaker 4: for people. So what we're sensing it with our clients

527
00:27:32,880 --> 00:27:35,920
Speaker 4: is a desire to get exposure to more global markets.

528
00:27:36,160 --> 00:27:37,840
Speaker 4: And what do you keep. Where we're strong is we

529
00:27:37,880 --> 00:27:40,040
Speaker 4: have two thirds of our businesses outside of the US.

530
00:27:40,520 --> 00:27:42,600
Speaker 3: We're very strong in Europe, were very strong in Asia.

531
00:27:43,480 --> 00:27:47,800
Speaker 4: Within those markets, we are also you know, exposed to

532
00:27:47,880 --> 00:27:50,280
Speaker 4: some of the best sectors. We have a very thematic approach.

533
00:27:50,440 --> 00:27:53,919
Speaker 4: We invest in healthcare, we invest in technology. Actually, we

534
00:27:54,080 --> 00:27:56,920
Speaker 4: just announced yesterday. I don't know when this is airing,

535
00:27:56,960 --> 00:27:59,439
Speaker 4: but we just announced yesterday that we've been awarded the

536
00:28:00,000 --> 00:28:03,680
Speaker 4: Scale Up Europe Fund mandate by the European Commission, which

537
00:28:03,720 --> 00:28:08,399
Speaker 4: is a huge deal. They decided to ward EQT the

538
00:28:08,440 --> 00:28:10,640
Speaker 4: management of what's going to be a five billion dollar

539
00:28:10,760 --> 00:28:14,439
Speaker 4: fund that will invest in early stage technology ventures across

540
00:28:14,480 --> 00:28:17,199
Speaker 4: Europe to help them to scale up, so kind of

541
00:28:17,240 --> 00:28:25,080
Speaker 4: series be onwards in areas like quantum computing, AI, life sciences, AI, infrastructure,

542
00:28:25,200 --> 00:28:29,720
Speaker 4: industrial technology, really taking the innovation that exists in Europe

543
00:28:30,000 --> 00:28:32,679
Speaker 4: and scaling it up to compete globally at the global

544
00:28:32,680 --> 00:28:34,280
Speaker 4: scale with some of the innovation you see in the

545
00:28:34,359 --> 00:28:36,000
Speaker 4: United States and in China.

546
00:28:36,560 --> 00:28:38,000
Speaker 3: So we have exposure to some.

547
00:28:37,920 --> 00:28:41,040
Speaker 4: Of these really interesting parts of the global investment landscape,

548
00:28:41,160 --> 00:28:44,240
Speaker 4: and that's very additive to what investors typically would have

549
00:28:44,320 --> 00:28:47,520
Speaker 4: in their exposure in their traditional portfolio would be much

550
00:28:47,560 --> 00:28:49,840
Speaker 4: more heavily weighted towards the US, and this is a

551
00:28:49,880 --> 00:28:52,840
Speaker 4: way to get a little bit broader global diversification in

552
00:28:52,880 --> 00:28:53,320
Speaker 4: that sense.

553
00:28:53,920 --> 00:28:57,520
Speaker 2: Really kind of interesting when we look at the performance

554
00:28:57,600 --> 00:29:02,280
Speaker 2: of various markets, really going back to the Great Financial Crisis,

555
00:29:02,840 --> 00:29:06,240
Speaker 2: it feels like Asia and Europe has very much legged

556
00:29:06,240 --> 00:29:09,640
Speaker 2: the US up until a year or two ago exactly.

557
00:29:10,120 --> 00:29:12,400
Speaker 2: I'm curious how you look at some of the macro

558
00:29:12,640 --> 00:29:18,320
Speaker 2: tailwinds that Asia is certainly enjoying, and as we see

559
00:29:18,320 --> 00:29:23,440
Speaker 2: a shift towards China in many many ways, especially leadership,

560
00:29:24,040 --> 00:29:27,400
Speaker 2: and how do you see Europe is some tailwinds to

561
00:29:27,520 --> 00:29:30,520
Speaker 2: some headwinds. They seem to be a little more complex

562
00:29:30,640 --> 00:29:34,320
Speaker 2: than trying to figure out what direction they're heading.

563
00:29:34,840 --> 00:29:37,640
Speaker 4: Yeah, I think what we're starting to see globally right

564
00:29:37,680 --> 00:29:44,880
Speaker 4: now is this capital capex supercycle that is playing out

565
00:29:45,120 --> 00:29:48,600
Speaker 4: with AI infrastructure, but not just AI infrastructure. It also

566
00:29:48,680 --> 00:29:55,160
Speaker 4: feeds into the reindustrialization focus on capex for reindustrialization.

567
00:29:54,440 --> 00:29:57,400
Speaker 2: Reindustrialization meaning explain what that meaning.

568
00:29:57,480 --> 00:30:01,320
Speaker 4: Sort of the investing back in to more of the

569
00:30:01,320 --> 00:30:05,200
Speaker 4: industrial base of say the United States or Europe, away

570
00:30:05,200 --> 00:30:09,360
Speaker 4: from just outsourcing all of that. And so this reindustrialization,

571
00:30:09,520 --> 00:30:14,040
Speaker 4: the AI capex infrastructure, plus you know, the whole power

572
00:30:14,320 --> 00:30:18,520
Speaker 4: energy transition that's going on with electrification, this is resulting

573
00:30:18,520 --> 00:30:21,960
Speaker 4: in much more capital intensive investment than we've ever seen before.

574
00:30:21,960 --> 00:30:23,840
Speaker 4: I mean, the sort of numbers that people are throwing

575
00:30:23,880 --> 00:30:28,680
Speaker 4: around are just unprecedented within our lifetimes. We've never it's historical,

576
00:30:28,960 --> 00:30:32,160
Speaker 4: the levels of investment that we're seeing, and that has

577
00:30:32,280 --> 00:30:35,400
Speaker 4: knock on effects. The knock on effects are throughout the

578
00:30:35,400 --> 00:30:37,560
Speaker 4: whole supply chain. A lot of the supply chain actually

579
00:30:37,600 --> 00:30:41,000
Speaker 4: feeds back into Europe, it feeds back into Asia certainly.

580
00:30:41,480 --> 00:30:44,200
Speaker 4: And so this kind of global supply chain of capital

581
00:30:44,200 --> 00:30:48,040
Speaker 4: expenditures is creating new investment opportunities and demand for capital

582
00:30:48,360 --> 00:30:50,800
Speaker 4: that we haven't like we have never seen before in

583
00:30:50,840 --> 00:30:53,480
Speaker 4: terms of the quantum of money that's required to make

584
00:30:53,520 --> 00:30:57,280
Speaker 4: this investment play out. So these are sort of broadening

585
00:30:57,320 --> 00:31:01,160
Speaker 4: that exposure across the regions. Is where we see opportunity.

586
00:31:01,720 --> 00:31:03,840
Speaker 4: If I look at the world today, you know, the

587
00:31:03,880 --> 00:31:08,000
Speaker 4: AI infrastructure opportunity globally is probably the single biggest, most

588
00:31:08,000 --> 00:31:11,280
Speaker 4: interesting investment opportunity for US. It means investing in a

589
00:31:11,280 --> 00:31:14,440
Speaker 4: couple of key areas. One is in the compute or

590
00:31:14,560 --> 00:31:17,480
Speaker 4: data center space. We have one of the largest data

591
00:31:17,480 --> 00:31:19,880
Speaker 4: center businesses in the world called it edge Connects. It's

592
00:31:19,960 --> 00:31:22,800
Speaker 4: active both in the US but also in Europe and

593
00:31:22,840 --> 00:31:25,480
Speaker 4: now increasingly in Asia. We have a joint venture in India,

594
00:31:25,560 --> 00:31:28,520
Speaker 4: for example, with the Adani Group in edge Connects, and

595
00:31:28,600 --> 00:31:31,880
Speaker 4: that that data center business has over ninety data centers.

596
00:31:33,000 --> 00:31:36,120
Speaker 4: It's increased in value. We've owned it now for six

597
00:31:36,160 --> 00:31:38,800
Speaker 4: seven years. I think it's increased by twenty x in

598
00:31:38,880 --> 00:31:42,640
Speaker 4: terms of the total installed capacity of the business.

599
00:31:43,960 --> 00:31:44,400
Speaker 3: We have.

600
00:31:45,560 --> 00:31:47,479
Speaker 4: In addition to that, we take kind of an end

601
00:31:47,520 --> 00:31:50,200
Speaker 4: to end solutions approach. So we have the compute but

602
00:31:50,240 --> 00:31:53,280
Speaker 4: we also have about one hundred billion dollars of investment

603
00:31:53,320 --> 00:31:57,240
Speaker 4: into energy. So the energy, the whole energy grid, you know,

604
00:31:57,360 --> 00:32:00,720
Speaker 4: power generation and grid and storage. This is a really

605
00:32:00,760 --> 00:32:04,200
Speaker 4: important part of the comprehensive solution that you need to

606
00:32:04,320 --> 00:32:07,760
Speaker 4: drive AI compute. So we've got the energy, we've got

607
00:32:07,760 --> 00:32:13,680
Speaker 4: the compute, we're also investing in the digital infrastructure to

608
00:32:13,720 --> 00:32:15,920
Speaker 4: connect it all the digital connectivity of all of this,

609
00:32:16,840 --> 00:32:19,240
Speaker 4: and so if you tie that all together, our infrastructure

610
00:32:19,280 --> 00:32:22,120
Speaker 4: business is really riding some of these global tailwinds, not

611
00:32:22,160 --> 00:32:24,880
Speaker 4: just in the US, but really doing this globally. Then

612
00:32:24,920 --> 00:32:26,760
Speaker 4: in addition to that, i'd say the other thing that's

613
00:32:26,760 --> 00:32:28,880
Speaker 4: pretty interesting if you take a sort of non US

614
00:32:29,000 --> 00:32:32,880
Speaker 4: lens at the world, is what's happening in Japan. And

615
00:32:33,000 --> 00:32:36,840
Speaker 4: there the Japanese buyout market is really on a taiar.

616
00:32:38,800 --> 00:32:42,400
Speaker 4: It's being driven primarily by some corporate reforms around shareholder

617
00:32:42,440 --> 00:32:48,640
Speaker 4: reforms and activists, shareholder increasing activism, shareholder activism which is

618
00:32:48,680 --> 00:32:52,080
Speaker 4: supported actually by the Japanese government to improve corporate governance. Essentially,

619
00:32:52,480 --> 00:32:56,920
Speaker 4: that's creating opportunities to really focus on shareholder value and

620
00:32:56,960 --> 00:33:00,360
Speaker 4: to result in a lot more deal flow. The number

621
00:33:00,400 --> 00:33:03,800
Speaker 4: of transactions that we've seen have it's this year to alone,

622
00:33:03,800 --> 00:33:06,160
Speaker 4: it's up sixty percent year to date. The total number

623
00:33:06,200 --> 00:33:08,400
Speaker 4: of activist shareholder campaigns has doubled in the last few

624
00:33:08,480 --> 00:33:12,040
Speaker 4: years fifty to over one hundred a year on the

625
00:33:12,040 --> 00:33:15,160
Speaker 4: back of some of these reforms. So you're seeing a

626
00:33:15,160 --> 00:33:19,920
Speaker 4: whole new market kind of developing there for Japanese buyouts,

627
00:33:19,960 --> 00:33:24,480
Speaker 4: which is very uncorrelated and very complementary to the traditional

628
00:33:24,560 --> 00:33:27,560
Speaker 4: bioopportunities that exist in the United States. And then together

629
00:33:27,600 --> 00:33:30,640
Speaker 4: with the I infrastructure opportunity, which is more global, there's

630
00:33:30,720 --> 00:33:33,160
Speaker 4: just a lot happening in our ecosystem which we see

631
00:33:33,160 --> 00:33:36,280
Speaker 4: as being very additive, very complementary to just the traditional

632
00:33:36,560 --> 00:33:39,480
Speaker 4: bread and butter of US exposure to private equity or

633
00:33:39,600 --> 00:33:40,560
Speaker 4: US infrastructure.

634
00:33:40,960 --> 00:33:43,320
Speaker 2: So I have so many questions to go.

635
00:33:43,320 --> 00:33:45,520
Speaker 4: Sorry, maybe just one last year on that, which is

636
00:33:45,520 --> 00:33:47,040
Speaker 4: that you asked. You started the question up by the

637
00:33:47,040 --> 00:33:50,040
Speaker 4: outperformance of the market. So what ended up happening last year,

638
00:33:50,080 --> 00:33:53,080
Speaker 4: as you pointed out, is that you know, the stock markets,

639
00:33:53,080 --> 00:33:55,600
Speaker 4: if you look at listed markets as a proxy, the

640
00:33:55,680 --> 00:33:57,520
Speaker 4: S and P five hundred did pretty well, was up

641
00:33:57,520 --> 00:34:00,600
Speaker 4: sort of eighteen percent of seventeen, yeah, versus thirty three.

642
00:34:00,800 --> 00:34:03,680
Speaker 4: But everything else in Asia was up much more than that,

643
00:34:03,760 --> 00:34:06,640
Speaker 4: as it turned out, either amazing who would have guessed,

644
00:34:06,640 --> 00:34:08,520
Speaker 4: you know, here is up sixty percent last year, and

645
00:34:08,960 --> 00:34:10,960
Speaker 4: Hong Kong was up, Japan was up in the thirties,

646
00:34:11,000 --> 00:34:16,080
Speaker 4: and you had even europe stock markets did better than

647
00:34:16,120 --> 00:34:19,560
Speaker 4: the US last year. So the idea that having all

648
00:34:19,680 --> 00:34:23,680
Speaker 4: your pension, all your retirement money in one market, it's

649
00:34:23,719 --> 00:34:26,640
Speaker 4: worked pretty well for design being. But the idea of

650
00:34:26,640 --> 00:34:29,719
Speaker 4: the correlation and concentration, and you know, markets don't always

651
00:34:29,760 --> 00:34:32,239
Speaker 4: go up, they go down as well. I think the

652
00:34:32,280 --> 00:34:37,680
Speaker 4: old diversification strategies do play a role in long term

653
00:34:37,760 --> 00:34:40,799
Speaker 4: acid allocation, and that's where EQT, I think has something.

654
00:34:41,120 --> 00:34:44,200
Speaker 2: I have so many questions about Europe and Japan and

655
00:34:44,280 --> 00:34:48,359
Speaker 2: Korea and other areas, but I have to come back

656
00:34:48,400 --> 00:34:52,439
Speaker 2: to China for a moment, which for the better part

657
00:34:52,480 --> 00:34:54,680
Speaker 2: of the past two or three decades has been the

658
00:34:54,719 --> 00:35:00,520
Speaker 2: center of Asia. Feels like the geopolitics, the regulatory environment,

659
00:35:00,560 --> 00:35:06,720
Speaker 2: everything has shifted fairly dramatically. How do you look at China.

660
00:35:06,800 --> 00:35:09,840
Speaker 2: Are they still, you know, the eight hundred pound gorilla,

661
00:35:10,120 --> 00:35:15,960
Speaker 2: or are there enough offsetting economies that are really growing

662
00:35:16,280 --> 00:35:20,359
Speaker 2: and seeing gains in their markets that it's not all

663
00:35:20,400 --> 00:35:23,520
Speaker 2: about China the way it once was ten twenty years ago.

664
00:35:25,560 --> 00:35:30,280
Speaker 4: The world is geopolitically is becoming more polarized, and maybe

665
00:35:30,320 --> 00:35:36,000
Speaker 4: creating more silos in certain strategic areas like technology and defense,

666
00:35:37,880 --> 00:35:40,680
Speaker 4: as you know, as the winds have shifted.

667
00:35:41,040 --> 00:35:41,680
Speaker 3: That's just the.

668
00:35:41,600 --> 00:35:44,839
Speaker 4: Reality of the world that we're living in. Having said that,

669
00:35:45,280 --> 00:35:48,480
Speaker 4: I do think that there's still this underlying ecosystem of

670
00:35:48,560 --> 00:35:52,960
Speaker 4: inter dependence and you know, a desire I think to

671
00:35:53,040 --> 00:35:58,200
Speaker 4: work together. I hope in areas like, for example, in medicine.

672
00:35:58,880 --> 00:36:01,600
Speaker 4: You know, if you look at the biofarm the biotech industry,

673
00:36:01,600 --> 00:36:03,719
Speaker 4: there's a lot going on right now between China and

674
00:36:03,800 --> 00:36:06,920
Speaker 4: the US. A lot of the early stage trials that

675
00:36:06,960 --> 00:36:09,920
Speaker 4: are being done. Many of those are getting acquired by

676
00:36:10,040 --> 00:36:12,440
Speaker 4: US pharmaceutical companies and then being rolled out for the

677
00:36:12,480 --> 00:36:13,759
Speaker 4: benefit of humanity all.

678
00:36:13,680 --> 00:36:14,240
Speaker 3: Over the world.

679
00:36:15,120 --> 00:36:17,319
Speaker 4: And these are areas where there's scope I think for

680
00:36:17,440 --> 00:36:21,239
Speaker 4: cooperation and I think everyone can benefit from that. There

681
00:36:21,239 --> 00:36:23,839
Speaker 4: are areas that are much more sensitive when it comes

682
00:36:23,840 --> 00:36:27,759
Speaker 4: to technology and ships and semiconductors. But even there, I

683
00:36:27,760 --> 00:36:32,920
Speaker 4: would say that it's important for all investors, for all

684
00:36:32,920 --> 00:36:37,879
Speaker 4: business investors, for governments, for policy makers to at least

685
00:36:37,960 --> 00:36:43,360
Speaker 4: understand what's happening in China because I think it's relevant.

686
00:36:43,360 --> 00:36:47,600
Speaker 4: You know, it has an impact on global outlook. You know,

687
00:36:47,680 --> 00:36:50,680
Speaker 4: you look at evs, you look at the solar industry,

688
00:36:51,520 --> 00:36:54,360
Speaker 4: you look at what's happening in battery storage. You know,

689
00:36:54,480 --> 00:36:57,080
Speaker 4: having access to that sort of know how ultimately is

690
00:36:57,120 --> 00:36:59,520
Speaker 4: going to be important for everyone. How you do that

691
00:36:59,560 --> 00:37:02,120
Speaker 4: in a way protects your national interest is a topic

692
00:37:02,160 --> 00:37:05,120
Speaker 4: of the day for policymakers globally, in the US and Europe,

693
00:37:05,360 --> 00:37:07,160
Speaker 4: and I think people are looking at that differently than

694
00:37:07,160 --> 00:37:08,760
Speaker 4: they used to in terms of how much they're willing

695
00:37:08,760 --> 00:37:11,520
Speaker 4: to outsource versus how much they want to do themselves.

696
00:37:11,880 --> 00:37:13,600
Speaker 4: I mean, this Scale Up Europe Fund that I just

697
00:37:13,680 --> 00:37:17,200
Speaker 4: mentioned is also a policy response to wanting to create

698
00:37:17,280 --> 00:37:21,239
Speaker 4: homegrown innovation and scale homegrown innovation, which makes sense the

699
00:37:21,280 --> 00:37:22,839
Speaker 4: way the US wants to do that and the way

700
00:37:22,840 --> 00:37:26,680
Speaker 4: that China wants to do that. I think that the

701
00:37:26,800 --> 00:37:31,200
Speaker 4: Chinese economy, it's truly impressive what's happening there in terms

702
00:37:31,200 --> 00:37:35,520
Speaker 4: of innovation, the way the economy is growing, and the

703
00:37:35,520 --> 00:37:37,080
Speaker 4: amount of R and D if you look at the

704
00:37:37,120 --> 00:37:40,200
Speaker 4: patents being filed, the level of innovation, how the innovation

705
00:37:40,280 --> 00:37:43,080
Speaker 4: is being commercialized. But at the same time, there's some

706
00:37:43,239 --> 00:37:46,800
Speaker 4: very exciting things happening in Europe and in the United States. Obviously,

707
00:37:46,880 --> 00:37:49,279
Speaker 4: the US is also leading in many ways when it

708
00:37:49,320 --> 00:37:52,719
Speaker 4: comes to AI. One of the things to keep an

709
00:37:52,719 --> 00:37:55,560
Speaker 4: eye on, by the way, is the cost of compute

710
00:37:55,800 --> 00:38:02,480
Speaker 4: differential between the US and China. There is a big

711
00:38:02,520 --> 00:38:07,440
Speaker 4: difference there in how compute is generated and ultimately the

712
00:38:07,440 --> 00:38:10,279
Speaker 4: cost of that compute per token to the users, which

713
00:38:10,320 --> 00:38:11,960
Speaker 4: is going to become more of a focus, I think

714
00:38:12,000 --> 00:38:14,200
Speaker 4: going forward than it has been up until now, where

715
00:38:14,200 --> 00:38:16,480
Speaker 4: it's kind of been viewed as a must have, almost

716
00:38:16,600 --> 00:38:20,360
Speaker 4: free available to all employees, they will be more focused

717
00:38:20,360 --> 00:38:23,040
Speaker 4: on ROI and I think this is where people are

718
00:38:23,080 --> 00:38:25,680
Speaker 4: going to start looking at the competitive position of cost

719
00:38:25,719 --> 00:38:28,439
Speaker 4: of compute in different markets versus what's happening in the US.

720
00:38:28,840 --> 00:38:31,920
Speaker 2: Last question of EQT before we start talking a little

721
00:38:31,920 --> 00:38:35,840
Speaker 2: more about the environment out there today. How do investors

722
00:38:36,080 --> 00:38:41,960
Speaker 2: in EQT manage their exposure? Are they putting money into

723
00:38:42,000 --> 00:38:45,880
Speaker 2: one fund that has a little bit of everything or

724
00:38:45,920 --> 00:38:49,480
Speaker 2: do people get very granular or a little bit of both.

725
00:38:50,160 --> 00:38:54,760
Speaker 4: We have thirty different strategies at EQT across four different areas,

726
00:38:55,680 --> 00:39:00,319
Speaker 4: private equity, infrastructure, real estate, and secondaries. Secondaries is our

727
00:39:00,320 --> 00:39:03,440
Speaker 4: newest area that we've just announced that we've required. Color

728
00:39:03,520 --> 00:39:05,680
Speaker 4: Capital hasn't closed it but we're in the process of

729
00:39:05,920 --> 00:39:06,760
Speaker 4: bringing that on board.

730
00:39:07,200 --> 00:39:10,759
Speaker 3: So we have thirty different strategies. I think we have both.

731
00:39:10,800 --> 00:39:13,759
Speaker 4: We have the drawdown funds, which are the main institutional

732
00:39:13,880 --> 00:39:16,760
Speaker 4: vehicles for committing traditionally as you would to a fund

733
00:39:16,760 --> 00:39:20,319
Speaker 4: and invest in buyouts or in growth capital, or in

734
00:39:20,360 --> 00:39:24,120
Speaker 4: life sciences or in real estate. But increasingly, and this

735
00:39:24,200 --> 00:39:27,120
Speaker 4: is the higher, highest growth part of our business and

736
00:39:27,280 --> 00:39:30,439
Speaker 4: for the industry as a whole, we have the open

737
00:39:30,520 --> 00:39:33,960
Speaker 4: ended structures. Some people call them evergreens. We don't call

738
00:39:34,000 --> 00:39:36,640
Speaker 4: them semi liquids because they're not liquid. They're not even

739
00:39:36,640 --> 00:39:39,960
Speaker 4: semi liquid, but they are open ended. And what open

740
00:39:40,040 --> 00:39:42,919
Speaker 4: ended means is that you can subscribe to them every

741
00:39:42,960 --> 00:39:47,640
Speaker 4: month and you can redeem every quarter subject to the

742
00:39:47,719 --> 00:39:52,680
Speaker 4: underlying liquidity availability in the quarter and the You know,

743
00:39:52,719 --> 00:39:55,120
Speaker 4: what we're starting to see is there are a couple

744
00:39:55,160 --> 00:39:56,399
Speaker 4: advantages of the.

745
00:39:56,320 --> 00:39:57,880
Speaker 3: Evergreen or open ended structures.

746
00:39:57,960 --> 00:40:00,960
Speaker 4: Number One, they do invest across everything, so you don't

747
00:40:00,960 --> 00:40:02,840
Speaker 4: have to choose which funds you want to invest and

748
00:40:02,880 --> 00:40:05,200
Speaker 4: you get a broad exposure. Number Two, they invest one

749
00:40:05,280 --> 00:40:08,080
Speaker 4: hundred percent of your money immediately into the asset class.

750
00:40:08,080 --> 00:40:11,840
Speaker 4: So we're starting to see institutional investors also use this.

751
00:40:12,000 --> 00:40:14,839
Speaker 4: Not just the private clients use this because they are

752
00:40:14,920 --> 00:40:18,280
Speaker 4: able to dial up and dial down their exposure instantly.

753
00:40:18,719 --> 00:40:20,719
Speaker 4: So if you want to have a certain percent of

754
00:40:20,760 --> 00:40:24,160
Speaker 4: your portfolio in private markets, rather than waiting for the

755
00:40:24,200 --> 00:40:26,239
Speaker 4: capital to be called over the next two three years,

756
00:40:26,280 --> 00:40:28,239
Speaker 4: you could just put it to work immediately into the

757
00:40:28,280 --> 00:40:31,400
Speaker 4: asset class through these evergreen structures, which are fully invested

758
00:40:31,600 --> 00:40:35,120
Speaker 4: on an nav basis immediately. So that's one of the

759
00:40:35,280 --> 00:40:38,359
Speaker 4: interesting aspects of that. The other interesting aspect of our

760
00:40:39,200 --> 00:40:42,400
Speaker 4: evergreen structures or open endstructures is, unlike some of the

761
00:40:42,560 --> 00:40:47,040
Speaker 4: other products out there which have designated investment strategies or

762
00:40:47,080 --> 00:40:49,920
Speaker 4: investment teams for those open ended structures, our open ended

763
00:40:49,920 --> 00:40:53,640
Speaker 4: structure is essentially a like for like perry pursuit. Alongside

764
00:40:53,680 --> 00:40:56,960
Speaker 4: everything we do, you get exactly the same exposure to

765
00:40:57,080 --> 00:40:59,239
Speaker 4: exactly the same deals and the same pricing and the

766
00:40:59,239 --> 00:41:01,919
Speaker 4: same everything that we provide to our sovereign wealth fund

767
00:41:01,920 --> 00:41:04,000
Speaker 4: clients that we provide to our institutional clients.

768
00:41:04,239 --> 00:41:07,800
Speaker 3: It's all allocated across equally, so there's no cherry picking.

769
00:41:07,800 --> 00:41:10,360
Speaker 4: There's no sort of different strategies for the wealth vehicle

770
00:41:10,680 --> 00:41:12,440
Speaker 4: as there is for the institutional vehicle.

771
00:41:12,680 --> 00:41:13,720
Speaker 3: It's a single vehicle.

772
00:41:14,520 --> 00:41:17,000
Speaker 4: And then I think the other key aspect of our

773
00:41:17,040 --> 00:41:19,959
Speaker 4: investment program, which is sort of where why we've landed

774
00:41:19,960 --> 00:41:22,480
Speaker 4: where we've landed in terms of our fundraising last year,

775
00:41:22,520 --> 00:41:25,200
Speaker 4: we've you know, for example, we've just announced our closing

776
00:41:25,280 --> 00:41:27,480
Speaker 4: of our Asia Fund, which is a fifteen billion dollar fund.

777
00:41:27,520 --> 00:41:29,719
Speaker 4: It's the largest fund ever raised in Asia, fifteen point

778
00:41:29,760 --> 00:41:32,359
Speaker 4: six billion dollars. The reason we've been able to achieve

779
00:41:32,440 --> 00:41:35,480
Speaker 4: this is because of our exits and liquidity.

780
00:41:35,440 --> 00:41:37,440
Speaker 3: Profile of our investment program.

781
00:41:37,840 --> 00:41:40,319
Speaker 4: It's been a tough environment for exit liquid It's one

782
00:41:40,360 --> 00:41:41,920
Speaker 4: of the challenges that you read a lot about in

783
00:41:41,960 --> 00:41:44,240
Speaker 4: our industry. We actually had a record year for exits

784
00:41:44,280 --> 00:41:48,840
Speaker 4: last year at eqtiion dollars. We had forty billion dollars

785
00:41:48,840 --> 00:41:53,279
Speaker 4: in distributions. It's huge, it's huge, it's a reck It's.

786
00:41:53,239 --> 00:41:57,080
Speaker 2: More than ten percent of total investment dollars. That's tremendous.

787
00:41:57,160 --> 00:41:59,239
Speaker 4: It's actually about thirty percent of the navy of the

788
00:41:59,320 --> 00:42:03,800
Speaker 4: strategies that that covers. And if you look at active

789
00:42:03,840 --> 00:42:08,920
Speaker 4: funds and if you look at the liquidity profile there,

790
00:42:09,000 --> 00:42:11,719
Speaker 4: it even included a significant amount of tapping into the

791
00:42:11,760 --> 00:42:15,040
Speaker 4: equity capital markets, the public markets, so we were actually

792
00:42:15,040 --> 00:42:19,480
Speaker 4: the number one ECM firm last year. We had fifteen

793
00:42:19,480 --> 00:42:22,960
Speaker 4: billion dollars of equity capital markets activity, ranked number one

794
00:42:23,000 --> 00:42:25,439
Speaker 4: by far actually relative all the other private equity firms

795
00:42:25,480 --> 00:42:28,760
Speaker 4: out there, on the back of just having some really

796
00:42:28,760 --> 00:42:31,080
Speaker 4: interesting assets that the market.

797
00:42:30,800 --> 00:42:31,359
Speaker 3: Was open for.

798
00:42:31,960 --> 00:42:35,799
Speaker 2: Meaning when you have a liquidity event, that money just

799
00:42:35,840 --> 00:42:39,840
Speaker 2: doesn't sit in bonds, you put it actively into equity markets.

800
00:42:39,480 --> 00:42:42,560
Speaker 4: Now, meaning that we're able to take our companies public

801
00:42:42,840 --> 00:42:45,520
Speaker 4: or sell down through the public markets as an avenue

802
00:42:45,520 --> 00:42:48,319
Speaker 4: of getting liquidity versus just trying to sell to other

803
00:42:48,400 --> 00:42:51,640
Speaker 4: buyout funds or sell to strategic buyers. Those deals have

804
00:42:51,760 --> 00:42:54,200
Speaker 4: been a bit slower, and even the IPO markets have

805
00:42:54,239 --> 00:42:57,200
Speaker 4: been challenging, but we were within a challenging IPO market,

806
00:42:57,440 --> 00:42:59,680
Speaker 4: we had the highest level of activity of all other

807
00:42:59,719 --> 00:43:01,719
Speaker 4: market market participants.

808
00:43:01,440 --> 00:43:06,799
Speaker 2: It's amazing. My bias is not thinking IPO because of

809
00:43:06,800 --> 00:43:09,600
Speaker 2: what we've seen the past five years, but thinking some

810
00:43:09,680 --> 00:43:12,520
Speaker 2: exit and then just parked the cash there. I have

811
00:43:12,560 --> 00:43:16,040
Speaker 2: it exactly backwards. You exit through the IPO market and

812
00:43:16,080 --> 00:43:18,799
Speaker 2: then you distribute the cash.

813
00:43:18,000 --> 00:43:19,440
Speaker 3: To LPs exactly.

814
00:43:19,680 --> 00:43:22,080
Speaker 4: Our biggest exit last year globally as a group was

815
00:43:22,120 --> 00:43:26,720
Speaker 4: a company called Galderma which is a European medical aesthetics

816
00:43:26,800 --> 00:43:31,640
Speaker 4: business providing medical asthetic products including things like botox and

817
00:43:31,640 --> 00:43:34,560
Speaker 4: you that have been on the rise and you know,

818
00:43:34,680 --> 00:43:40,000
Speaker 4: completely uncorrelated to AI. This location and an investment that

819
00:43:40,040 --> 00:43:43,919
Speaker 4: did extremely well for us. In total over the last

820
00:43:43,920 --> 00:43:46,000
Speaker 4: two or three years since we took it public, we

821
00:43:46,120 --> 00:43:49,879
Speaker 4: realized something like twenty four billion dollars of distributions from

822
00:43:49,880 --> 00:43:52,799
Speaker 4: that single investment. Last year alone, we sold over eight

823
00:43:52,840 --> 00:43:56,400
Speaker 4: billion dollars in one single trunch, which was the largest

824
00:43:56,400 --> 00:44:00,000
Speaker 4: transaction ever completed in the public markets by private equi

825
00:44:00,080 --> 00:44:02,279
Speaker 4: be firm. So the point of all this is just

826
00:44:02,320 --> 00:44:04,960
Speaker 4: really to say that in a tough market where liquidity,

827
00:44:04,960 --> 00:44:08,319
Speaker 4: where people are looking for distributions, it's nice to be

828
00:44:08,360 --> 00:44:13,440
Speaker 4: diversified globally where you're not tying all your liquidity proceeds

829
00:44:13,719 --> 00:44:16,359
Speaker 4: to a single strategy or a single market, but you

830
00:44:16,360 --> 00:44:19,000
Speaker 4: have exposure to multiple markets and you're getting cash back

831
00:44:19,000 --> 00:44:21,600
Speaker 4: from different strategies to give you that cash that you

832
00:44:21,719 --> 00:44:24,319
Speaker 4: need at a time when you're lacking distributions from other

833
00:44:24,360 --> 00:44:25,440
Speaker 4: parts of your portfolio.

834
00:44:25,640 --> 00:44:29,040
Speaker 2: Really fascinating. Coming up, we continue our conversation with Joan

835
00:44:29,160 --> 00:44:34,520
Speaker 2: Eric Salada, chairman of EQT Group, discussing the combination of

836
00:44:34,640 --> 00:44:39,680
Speaker 2: BPEA and EQT. I'm Barry Ritults. You're listening to Masters

837
00:44:39,680 --> 00:44:59,680
Speaker 2: in Business on Bloomberg Radio. I'm Barry Ridults. You're listening

838
00:44:59,760 --> 00:45:03,480
Speaker 2: to Asters in Business on Bloomberg Radio. My extra special

839
00:45:03,480 --> 00:45:07,000
Speaker 2: guest this week is Jean Eric Salata. He is chair

840
00:45:07,120 --> 00:45:12,080
Speaker 2: of EQT Group, one of the largest alternative managers outside

841
00:45:12,120 --> 00:45:16,120
Speaker 2: of the US. They managed three hundred and sixteen billion dollars.

842
00:45:16,600 --> 00:45:18,640
Speaker 2: So let's talk a little bit about the state of

843
00:45:18,680 --> 00:45:25,520
Speaker 2: alternatives and markets in the current environment. You mentioned artificial intelligence,

844
00:45:26,280 --> 00:45:31,799
Speaker 2: energy transition, healthcare, digitalization. What has you most excited in

845
00:45:31,880 --> 00:45:33,839
Speaker 2: Asia over the coming decade.

846
00:45:34,719 --> 00:45:37,360
Speaker 4: I think in Asia, as we were touching on a

847
00:45:37,360 --> 00:45:40,120
Speaker 4: little earlier, there's a couple of big themes that we're

848
00:45:40,120 --> 00:45:43,680
Speaker 4: excited about. One is this sort of CAPEC supercycle, which

849
00:45:43,719 --> 00:45:46,640
Speaker 4: is feeding through the Asian supply chain. You know, when

850
00:45:46,680 --> 00:45:52,200
Speaker 4: you're talking about building data centers or semiconductor memory chips

851
00:45:52,200 --> 00:45:54,480
Speaker 4: and so on, there's a whole supply chain that feeds

852
00:45:54,480 --> 00:45:57,320
Speaker 4: into that. Whether it's the cooling, whether it's the grid,

853
00:45:57,440 --> 00:46:01,440
Speaker 4: whether it's the capital equipment that's used to manufacture, the

854
00:46:01,480 --> 00:46:06,480
Speaker 4: testing equipment, the services around that. So there is a

855
00:46:06,520 --> 00:46:12,239
Speaker 4: whole supply chain that's seeing elevated activity and growth. I

856
00:46:12,280 --> 00:46:16,240
Speaker 4: think the number is something like an incremental five trillion

857
00:46:16,280 --> 00:46:20,000
Speaker 4: dollars of CAPEX being spent in Asia within the industrial

858
00:46:20,080 --> 00:46:22,919
Speaker 4: supply chain between now and the next Over the next

859
00:46:22,920 --> 00:46:26,040
Speaker 4: five years, it's growing at about fifteen percent a year,

860
00:46:27,239 --> 00:46:31,439
Speaker 4: so you've got a healthy growth, tremendous CAPEC spend. It's

861
00:46:31,480 --> 00:46:33,480
Speaker 4: a little bit of the picks and shovels approach to

862
00:46:33,719 --> 00:46:36,719
Speaker 4: you have this tremendous boom and AI that you know

863
00:46:36,840 --> 00:46:40,120
Speaker 4: that's feeding through. There's knock on effects into the supply chain,

864
00:46:40,520 --> 00:46:43,080
Speaker 4: and Asia's pretty well positioned to participate in that. You

865
00:46:43,120 --> 00:46:45,880
Speaker 4: look at markets like Korea, you look at markets like Japan.

866
00:46:45,960 --> 00:46:49,200
Speaker 4: Those are probably two of the biggest beneficiaries certain parts

867
00:46:49,200 --> 00:46:52,359
Speaker 4: of Southeast Asia as well, so we're excited about that.

868
00:46:53,200 --> 00:46:55,279
Speaker 4: I think the second big opportunity we touched on it

869
00:46:55,280 --> 00:46:58,239
Speaker 4: earlier as well, is just the Japanese bio market. And

870
00:46:58,800 --> 00:47:01,840
Speaker 4: you know, the level of reform that you're seeing there

871
00:47:02,040 --> 00:47:07,080
Speaker 4: driving increased deal flow, driving really what I call the

872
00:47:07,200 --> 00:47:12,960
Speaker 4: excess returns opportunities that private equity really is good at

873
00:47:13,000 --> 00:47:16,239
Speaker 4: and should be focusing on the days of you know,

874
00:47:16,280 --> 00:47:21,800
Speaker 4: buying under managed assets, either either changing the management or

875
00:47:21,880 --> 00:47:24,920
Speaker 4: enhancing the strategy of the business in order to close

876
00:47:24,960 --> 00:47:27,520
Speaker 4: the gap between the operating performance of the business and

877
00:47:27,560 --> 00:47:29,360
Speaker 4: the full potential of the business. That's kind of the

878
00:47:29,400 --> 00:47:32,799
Speaker 4: traditional playbook of private equity. It's gotten harder to do

879
00:47:32,840 --> 00:47:36,000
Speaker 4: in parts of the market that have become more efficient. Globally,

880
00:47:36,000 --> 00:47:38,080
Speaker 4: you have a lot of shareholder activism already, so most

881
00:47:38,120 --> 00:47:40,840
Speaker 4: public companies are already doing what they should be doing,

882
00:47:41,320 --> 00:47:44,800
Speaker 4: but in Japan they're a little bit still further behind.

883
00:47:44,920 --> 00:47:47,480
Speaker 4: And now you see a big push by the Japanese

884
00:47:47,680 --> 00:47:52,560
Speaker 4: authorities and political leadership to drive efficiency in their economy

885
00:47:52,560 --> 00:47:55,200
Speaker 4: and to drive corporate governance reforms, which is trying to

886
00:47:55,239 --> 00:47:59,160
Speaker 4: close this gap between full potential and performance, and as

887
00:47:59,160 --> 00:48:03,000
Speaker 4: a result, a lot more assets being sold, either corporate divestitures,

888
00:48:03,400 --> 00:48:07,799
Speaker 4: take privates, or generational change happening with founder led businesses

889
00:48:08,160 --> 00:48:10,640
Speaker 4: where you're buying business and you really see the opportunity

890
00:48:10,640 --> 00:48:14,399
Speaker 4: to simplify and improve execution. It's really about that. It's

891
00:48:14,440 --> 00:48:18,719
Speaker 4: about sort of like focusing the business and fewer areas

892
00:48:19,400 --> 00:48:22,760
Speaker 4: and then improving execution on management.

893
00:48:23,040 --> 00:48:26,160
Speaker 2: Let's talk about energy transition. It feels like here in

894
00:48:26,200 --> 00:48:28,759
Speaker 2: the United States, we're sort of backing away from a

895
00:48:28,800 --> 00:48:33,280
Speaker 2: lot of alternatives. Asia seems to be full speed ahead.

896
00:48:34,360 --> 00:48:37,640
Speaker 2: What are you seeing as opportunities in that space and where.

897
00:48:38,520 --> 00:48:41,440
Speaker 4: Yeah, we see a lot of opportunities across both Europe

898
00:48:41,440 --> 00:48:45,719
Speaker 4: and Asia in the energy transition. It's you know what's

899
00:48:45,760 --> 00:48:47,520
Speaker 4: going on now in the Middle East as well. It's

900
00:48:47,600 --> 00:48:50,320
Speaker 4: kind of driving home the point that energy security is

901
00:48:50,719 --> 00:48:54,439
Speaker 4: going to be even more critical in the future. There

902
00:48:54,520 --> 00:48:59,719
Speaker 4: is a tremendous technological push of innovation coming out of

903
00:48:59,760 --> 00:49:03,080
Speaker 4: China in terms of supply chain for batteries, for solar,

904
00:49:03,960 --> 00:49:07,359
Speaker 4: even areas like hydrogen. You're starting to see a lot

905
00:49:07,400 --> 00:49:12,040
Speaker 4: of very interesting scaled up innovation there. We have a

906
00:49:12,040 --> 00:49:15,520
Speaker 4: big infrastructure business in Asia that invests in the energy transition.

907
00:49:16,440 --> 00:49:18,320
Speaker 4: We invest in battery storage, for example. We have a

908
00:49:18,360 --> 00:49:20,960
Speaker 4: big business in Australia. Now Australia is as big in

909
00:49:21,000 --> 00:49:24,400
Speaker 4: this area. We expect to see more opportunities there. Singapore

910
00:49:24,480 --> 00:49:26,920
Speaker 4: has been a leader actually in funding the energy transition

911
00:49:27,640 --> 00:49:31,360
Speaker 4: throughout Southeast Asia. Very forward thinking, i would say, in

912
00:49:31,400 --> 00:49:36,640
Speaker 4: that regard, and it's just a large investment opportunity that

913
00:49:37,120 --> 00:49:42,160
Speaker 4: ultimately with energy transition, with climate related concerns. You know,

914
00:49:42,239 --> 00:49:46,200
Speaker 4: the real catalyst here is ultimately going to be is

915
00:49:46,640 --> 00:49:50,319
Speaker 4: already having having to be the market forces that drive

916
00:49:50,360 --> 00:49:53,480
Speaker 4: this forward. It has to be that it's more cost competitive.

917
00:49:53,480 --> 00:49:57,239
Speaker 4: It's more cost effective to do things using electricity in

918
00:49:57,280 --> 00:50:01,000
Speaker 4: the grid than it is using fossil fuels. Otherwise, if

919
00:50:01,000 --> 00:50:04,000
Speaker 4: it's not more cost effective, the market forces aren't really

920
00:50:04,000 --> 00:50:06,560
Speaker 4: at play, and you're relying on policy or you're relying

921
00:50:06,680 --> 00:50:10,640
Speaker 4: on philanthropy. It's just harder to see the sing scale.

922
00:50:10,760 --> 00:50:13,160
Speaker 4: But we're getting to this tipping point where the cost

923
00:50:13,200 --> 00:50:17,080
Speaker 4: curves are coming down, the security concerns are becoming real,

924
00:50:17,600 --> 00:50:21,120
Speaker 4: and when that happens, then you know, with scale, with volumes,

925
00:50:21,520 --> 00:50:24,840
Speaker 4: whether it's evy batteries, whether it's solar panels, you're starting

926
00:50:24,880 --> 00:50:27,920
Speaker 4: to see the big uptake and the movement in that direction.

927
00:50:28,120 --> 00:50:30,640
Speaker 2: We're getting a sense in the United States that the

928
00:50:30,680 --> 00:50:32,840
Speaker 2: war and Iran and the shunning of the straight or

929
00:50:32,920 --> 00:50:39,520
Speaker 2: hormos is paradoxically accelerating the move away from gas, oil

930
00:50:39,800 --> 00:50:45,840
Speaker 2: crew coal even towards alternatives. What's the perspective like from Asia?

931
00:50:46,719 --> 00:50:47,560
Speaker 3: I would agree with that.

932
00:50:47,640 --> 00:50:51,320
Speaker 4: I think that the energy security is top of mind,

933
00:50:52,560 --> 00:50:55,319
Speaker 4: and you know, certainly China has moved very much in

934
00:50:55,360 --> 00:50:59,640
Speaker 4: this direction, have the largest installed base of renewable energy,

935
00:50:59,680 --> 00:51:03,759
Speaker 4: they're the largest investor in renewable energy globally, and they're

936
00:51:03,800 --> 00:51:08,720
Speaker 4: moving in that direction, probably mainly for energy security reasons

937
00:51:09,160 --> 00:51:12,480
Speaker 4: as well as global competitiveness reasons. And then eventually it

938
00:51:12,520 --> 00:51:14,560
Speaker 4: also is going to come. I mean, there is still

939
00:51:14,840 --> 00:51:17,680
Speaker 4: multi decade run in fossil fuels, for sure that's going

940
00:51:17,719 --> 00:51:21,200
Speaker 4: to play out. But ultimately there's going to be a

941
00:51:21,239 --> 00:51:23,960
Speaker 4: cost issue related to fossil fuels. And if you want

942
00:51:24,000 --> 00:51:27,080
Speaker 4: to be competitive as an economy, what's your cost of energy?

943
00:51:27,440 --> 00:51:30,239
Speaker 4: You know, what is a scarce resource? If the cost

944
00:51:30,280 --> 00:51:32,799
Speaker 4: of energy is going higher and higher versus the other

945
00:51:32,920 --> 00:51:34,920
Speaker 4: alternatives out there, if you haven't invested in that, you're

946
00:51:34,920 --> 00:51:37,239
Speaker 4: playing catchup. It will feed through to the rest of

947
00:51:37,280 --> 00:51:40,239
Speaker 4: the industrial base. And I think this is where it's

948
00:51:40,280 --> 00:51:42,440
Speaker 4: important to take a long term perspective and where private

949
00:51:42,480 --> 00:51:45,120
Speaker 4: equity can play a role in sort of thinking through

950
00:51:45,160 --> 00:51:47,640
Speaker 4: the next five ten years. How do you make companies

951
00:51:47,680 --> 00:51:50,200
Speaker 4: more competitive, how do you drive innovation, how do you

952
00:51:50,280 --> 00:51:54,759
Speaker 4: drive investment in energy competitiveness and the energy transition To

953
00:51:54,840 --> 00:51:55,879
Speaker 4: help this happen.

954
00:51:56,000 --> 00:52:00,400
Speaker 2: We haven't really talked about India, which has always like

955
00:52:00,480 --> 00:52:02,839
Speaker 2: it was, oh, two years away, this is really going

956
00:52:02,880 --> 00:52:07,120
Speaker 2: to be in the next powerhouse economy always feels like

957
00:52:07,200 --> 00:52:11,160
Speaker 2: it's on the verge. What are you seeing there? It

958
00:52:11,280 --> 00:52:13,520
Speaker 2: kind of look feels like one of the more compelling

959
00:52:13,560 --> 00:52:15,040
Speaker 2: growth stories I think.

960
00:52:15,080 --> 00:52:17,280
Speaker 4: I like India a lot. We're very, very bullish on India.

961
00:52:17,280 --> 00:52:19,200
Speaker 4: It's been the biggest market for US over the last

962
00:52:19,239 --> 00:52:22,480
Speaker 4: five years of where we've invested. Historically, the story has

963
00:52:22,480 --> 00:52:25,400
Speaker 4: been a lot about technology investments in the tech services

964
00:52:25,400 --> 00:52:29,800
Speaker 4: industry primarily, which has been a beneficiary of global investment

965
00:52:29,840 --> 00:52:33,080
Speaker 4: in technology and the tech stack and the migration to

966
00:52:33,120 --> 00:52:35,799
Speaker 4: the cloud. That has hit a little bit of a

967
00:52:35,840 --> 00:52:38,719
Speaker 4: disruption now with what's going on with AI, but they're

968
00:52:38,800 --> 00:52:42,400
Speaker 4: quickly adapting to it and using AI tools to actually

969
00:52:42,680 --> 00:52:46,839
Speaker 4: make enterprises more competitive and to help diffuse AI into

970
00:52:46,840 --> 00:52:49,759
Speaker 4: the enterprise using the skills. And they have a you know,

971
00:52:50,440 --> 00:52:56,680
Speaker 4: millions of computer technology programmers and labor available to help

972
00:52:56,760 --> 00:52:58,680
Speaker 4: drive AI adoption, which is one of the things that

973
00:52:58,760 --> 00:53:02,160
Speaker 4: India is very comparitive in. But the bigger story in India,

974
00:53:02,200 --> 00:53:04,279
Speaker 4: I think for the next five years is more about

975
00:53:04,320 --> 00:53:07,600
Speaker 4: the consumer and the growth in the middle class and

976
00:53:08,440 --> 00:53:11,720
Speaker 4: one of the big beneficiaries of the growing middle class

977
00:53:11,800 --> 00:53:14,600
Speaker 4: as you're now seeing a huge increase now in you know,

978
00:53:14,640 --> 00:53:17,319
Speaker 4: it's the largest population in the world, one point four

979
00:53:17,360 --> 00:53:20,000
Speaker 4: billion people. It's also the youngest population in the world,

980
00:53:20,080 --> 00:53:22,759
Speaker 4: so the demographics are very favorable. And one of the

981
00:53:22,760 --> 00:53:24,920
Speaker 4: big early beneficiaries that we're starting to see on the

982
00:53:24,960 --> 00:53:26,640
Speaker 4: ground in India is the healthcare sector.

983
00:53:27,400 --> 00:53:28,360
Speaker 3: Housing and healthcare.

984
00:53:28,760 --> 00:53:30,480
Speaker 4: You know, the first thing that people do when they

985
00:53:30,520 --> 00:53:34,120
Speaker 4: start to save and generate a good income, they buy

986
00:53:34,200 --> 00:53:36,640
Speaker 4: home and then they want to make sure their family

987
00:53:36,680 --> 00:53:38,960
Speaker 4: as well, look after their parents and their children well

988
00:53:39,000 --> 00:53:41,800
Speaker 4: looked after from a healthcare standpoint. So we're seeing strong

989
00:53:41,840 --> 00:53:46,279
Speaker 4: demand for housing, housing, finance, and for healthcare, which is

990
00:53:46,280 --> 00:53:48,040
Speaker 4: some of the areas that we're investing in India.

991
00:53:48,680 --> 00:53:52,480
Speaker 2: So I'm going to paraphrase a quote of yours. Talent

992
00:53:52,719 --> 00:53:56,080
Speaker 2: is the key to unlocking outsize returns and private equity.

993
00:53:57,280 --> 00:54:00,200
Speaker 2: You're looking in India, you're looking in China and Japan, Korea,

994
00:54:00,360 --> 00:54:04,400
Speaker 2: Europe and the United States. How do you find and

995
00:54:04,480 --> 00:54:11,120
Speaker 2: develop management teams in such a broad diverse selection of regions.

996
00:54:11,160 --> 00:54:14,719
Speaker 2: That sounds like that is its own specific challenge.

997
00:54:15,040 --> 00:54:17,080
Speaker 4: It is, and I think one of the things that

998
00:54:17,160 --> 00:54:20,640
Speaker 4: we've learned over the years is the importance of being

999
00:54:20,680 --> 00:54:22,680
Speaker 4: able to be what we call an active owner in

1000
00:54:22,719 --> 00:54:25,600
Speaker 4: the businesses that we buy, which has really meant that

1001
00:54:25,800 --> 00:54:29,839
Speaker 4: we've really migrated primarily to a control biot strategy other

1002
00:54:29,920 --> 00:54:32,239
Speaker 4: than in our early stage tech strategies, but in our

1003
00:54:32,239 --> 00:54:35,040
Speaker 4: main strategies, we're a buyout investor, which means we have control,

1004
00:54:35,520 --> 00:54:39,600
Speaker 4: and I think having control enables you to really affect

1005
00:54:39,719 --> 00:54:42,920
Speaker 4: change in the business and collapses this sort of agency

1006
00:54:42,960 --> 00:54:45,799
Speaker 4: problem that you see between ownership and management and many

1007
00:54:45,840 --> 00:54:48,360
Speaker 4: other markets around the world, and Asia is no exception.

1008
00:54:48,760 --> 00:54:51,120
Speaker 4: We're starting to collapse that and see that collapse in

1009
00:54:51,160 --> 00:54:54,640
Speaker 4: Asia through the ownership model that the governance modelbly that

1010
00:54:54,680 --> 00:54:57,040
Speaker 4: private equity brings when they invest, when we invest as

1011
00:54:57,040 --> 00:54:59,719
Speaker 4: an industry, and as a result, as we've scaled our

1012
00:54:59,760 --> 00:55:03,040
Speaker 4: business over time, you're starting to be able to really

1013
00:55:03,080 --> 00:55:05,279
Speaker 4: develop pools of talent. So, for example, we have seven

1014
00:55:05,320 --> 00:55:09,000
Speaker 4: eight hundred what we call industrial advisors across globally across

1015
00:55:09,040 --> 00:55:12,920
Speaker 4: EQT from different industrial sectors and different sectors that we

1016
00:55:12,960 --> 00:55:16,040
Speaker 4: invest in, and we tap into those to come and

1017
00:55:16,040 --> 00:55:18,640
Speaker 4: become what we call our non executive chairs or independent

1018
00:55:18,640 --> 00:55:20,880
Speaker 4: non executive chairman, So we have a chairman that we

1019
00:55:20,920 --> 00:55:23,520
Speaker 4: bring in from industry. We usually have a CEO, either

1020
00:55:23,560 --> 00:55:25,880
Speaker 4: existing CEO or new CEO, and then we have our

1021
00:55:25,920 --> 00:55:29,040
Speaker 4: deal partner. And that combination of those three people is

1022
00:55:29,080 --> 00:55:32,400
Speaker 4: the governance structure for our investments that drive the active

1023
00:55:32,400 --> 00:55:36,799
Speaker 4: ownership model for our business. We also are seeing a

1024
00:55:36,960 --> 00:55:39,719
Speaker 4: bigger pool of domestic talent now that we're able to

1025
00:55:39,760 --> 00:55:44,960
Speaker 4: develop within say Japan, within India through multiple private equity

1026
00:55:45,000 --> 00:55:49,920
Speaker 4: back investments that we've made, where the same CEO, for example,

1027
00:55:49,920 --> 00:55:52,080
Speaker 4: that we work with before, we can work with that

1028
00:55:52,120 --> 00:55:56,000
Speaker 4: same individual again because the model now has been tried

1029
00:55:56,040 --> 00:55:58,560
Speaker 4: and tested and been around for a couple of decades.

1030
00:55:58,719 --> 00:56:01,480
Speaker 4: So you're developing much deeper bench of talent in private

1031
00:56:01,480 --> 00:56:04,759
Speaker 4: equity in Asia than you've had in the past, and

1032
00:56:04,800 --> 00:56:07,040
Speaker 4: that's been I think a key driver returns the combination

1033
00:56:07,120 --> 00:56:11,080
Speaker 4: of governance through the buyout strategy plus the talent pool

1034
00:56:11,080 --> 00:56:11,879
Speaker 4: that's available now.

1035
00:56:12,280 --> 00:56:14,359
Speaker 2: I have one last question before we get to our

1036
00:56:14,400 --> 00:56:16,840
Speaker 2: favorites that we ask all our guests. What do you

1037
00:56:16,840 --> 00:56:20,280
Speaker 2: think investors are not either talking about or thinking about

1038
00:56:20,840 --> 00:56:25,560
Speaker 2: but should be when it comes to private equity, Different geographies,

1039
00:56:26,040 --> 00:56:32,040
Speaker 2: different regulatory policy changes. What is getting either undernoticed or overlooked,

1040
00:56:32,560 --> 00:56:33,240
Speaker 2: but shouldn't.

1041
00:56:34,760 --> 00:56:37,439
Speaker 4: I think one of the really interesting developments is what's

1042
00:56:37,480 --> 00:56:41,760
Speaker 4: happening in the convergence between both public and private markets,

1043
00:56:41,760 --> 00:56:44,800
Speaker 4: so companies staying private longer, and the sort of blurring

1044
00:56:44,840 --> 00:56:46,719
Speaker 4: of the lines there. How you get exposure if you're

1045
00:56:46,760 --> 00:56:49,200
Speaker 4: an investor to the best businesses in the world, do

1046
00:56:49,239 --> 00:56:51,080
Speaker 4: you wait till they become public or do you do

1047
00:56:51,120 --> 00:56:54,560
Speaker 4: it before they become public? You know the historically it

1048
00:56:54,600 --> 00:56:57,759
Speaker 4: was a very small minority of institutional investors really that

1049
00:56:57,840 --> 00:56:59,360
Speaker 4: got exposure to private markets.

1050
00:56:59,480 --> 00:57:01,200
Speaker 3: Individual VESH has almost had zero.

1051
00:57:01,640 --> 00:57:03,960
Speaker 4: That's changed a lot in the last few years, but

1052
00:57:03,960 --> 00:57:06,040
Speaker 4: it's going to change, I think, even more as we

1053
00:57:06,160 --> 00:57:08,239
Speaker 4: move into in the coming years and people start to

1054
00:57:08,239 --> 00:57:11,359
Speaker 4: participate more. The democratization of our asset class that people

1055
00:57:11,400 --> 00:57:14,000
Speaker 4: talk about, I think is a big trend. Related to

1056
00:57:14,040 --> 00:57:17,640
Speaker 4: that is the kind of blurring of the lines between

1057
00:57:18,040 --> 00:57:21,800
Speaker 4: or convergence between the secondary market and the primary market

1058
00:57:21,800 --> 00:57:24,400
Speaker 4: of private equity. You know, those twosed to be viewed

1059
00:57:24,400 --> 00:57:28,160
Speaker 4: as completely different things. You invest in a private equity fund,

1060
00:57:28,480 --> 00:57:30,480
Speaker 4: if you can't get your money back after seven or

1061
00:57:30,520 --> 00:57:33,040
Speaker 4: eight years, you find someone to buy those interests from you.

1062
00:57:33,120 --> 00:57:35,840
Speaker 3: And that's a secondary market that has changed.

1063
00:57:36,840 --> 00:57:39,640
Speaker 4: If you think about the public markets, when you invest

1064
00:57:39,680 --> 00:57:42,880
Speaker 4: in a stock, you're buying a secondary position. You're buying

1065
00:57:42,880 --> 00:57:45,200
Speaker 4: when you buy Apple stock today, you're buying from someone

1066
00:57:45,240 --> 00:57:47,800
Speaker 4: who's selling it to you. You're buying a secondary You're

1067
00:57:47,800 --> 00:57:49,720
Speaker 4: not buying the IPO of Apple. That was a primary

1068
00:57:49,720 --> 00:57:51,800
Speaker 4: that happened twenty five years ago. Same things happened in

1069
00:57:51,840 --> 00:57:54,640
Speaker 4: private equity is that you know all the companies that

1070
00:57:54,640 --> 00:57:56,920
Speaker 4: are private. In order to buy them, you had to

1071
00:57:56,920 --> 00:57:59,040
Speaker 4: buy them as a primary through a fund that bought

1072
00:57:59,080 --> 00:58:02,240
Speaker 4: the company as a private deal. Well, now we have

1073
00:58:02,720 --> 00:58:05,040
Speaker 4: three point eight trillion dollars of private companies out there

1074
00:58:05,040 --> 00:58:08,960
Speaker 4: that are unrealized that everybody is complaining about. That actually

1075
00:58:09,080 --> 00:58:13,400
Speaker 4: is the foundation of a secondary market now in private companies,

1076
00:58:13,440 --> 00:58:16,840
Speaker 4: private assets that you and I and others can start

1077
00:58:16,880 --> 00:58:19,240
Speaker 4: to participate in through the secondary market.

1078
00:58:19,680 --> 00:58:22,680
Speaker 3: You don't need to find a new deal to buy.

1079
00:58:22,720 --> 00:58:24,880
Speaker 4: You can buy an existing business that's privately owned if

1080
00:58:24,880 --> 00:58:27,040
Speaker 4: you like it, if it's got great return potential, if

1081
00:58:27,040 --> 00:58:30,400
Speaker 4: it's the right price. It's another way to get exposure

1082
00:58:30,440 --> 00:58:34,520
Speaker 4: to the asset class through these evergreen structures, for example,

1083
00:58:34,520 --> 00:58:38,520
Speaker 4: and particularly through the credit through the secondary markets structures,

1084
00:58:39,200 --> 00:58:41,120
Speaker 4: which is the way a lot of institutional investors starting

1085
00:58:41,120 --> 00:58:43,040
Speaker 4: to think about it. If I want to dial up

1086
00:58:43,160 --> 00:58:46,000
Speaker 4: or dial down my exposure private markets, I can use

1087
00:58:46,040 --> 00:58:48,760
Speaker 4: secondary structures. I don't need to invest in a private

1088
00:58:48,880 --> 00:58:50,439
Speaker 4: in a private equity fund, per se.

1089
00:58:50,720 --> 00:58:52,680
Speaker 3: I can do that through the secondary markets.

1090
00:58:52,800 --> 00:58:55,640
Speaker 2: So let's jump to our speed round, starting with who

1091
00:58:55,640 --> 00:58:58,000
Speaker 2: are your early mentors who helped shape your career.

1092
00:58:58,440 --> 00:58:59,240
Speaker 3: I was very lucky.

1093
00:58:59,280 --> 00:59:01,360
Speaker 4: I had a third grade teacher that kind of took

1094
00:59:01,400 --> 00:59:04,440
Speaker 4: an interest in me and kept me after school to

1095
00:59:04,520 --> 00:59:07,480
Speaker 4: help me work on independent projects and was like an

1096
00:59:07,480 --> 00:59:11,520
Speaker 4: outlet from my creativity that I felt was frustrated in class.

1097
00:59:11,840 --> 00:59:13,480
Speaker 3: Really amazing teacher.

1098
00:59:13,560 --> 00:59:15,520
Speaker 2: Let's talk about books. What are some of your favorites?

1099
00:59:15,560 --> 00:59:16,520
Speaker 2: What are you reading currently?

1100
00:59:17,080 --> 00:59:19,840
Speaker 4: I read a great book called Why the West Rules

1101
00:59:19,880 --> 00:59:22,840
Speaker 4: for Now, which is a sweeping history of why the

1102
00:59:22,880 --> 00:59:25,560
Speaker 4: Industrial Revolution happened in the West and not in Asia

1103
00:59:25,680 --> 00:59:28,800
Speaker 4: in the east. But it talks about how going forward

1104
00:59:28,920 --> 00:59:32,560
Speaker 4: that could change, and it's if anybody's interested in history,

1105
00:59:32,560 --> 00:59:33,720
Speaker 4: I highly recommend that book.

1106
00:59:34,120 --> 00:59:34,640
Speaker 3: Really good.

1107
00:59:35,120 --> 00:59:37,640
Speaker 2: Final two questions, what sort of advice would you give

1108
00:59:37,640 --> 00:59:42,080
Speaker 2: a recent college grad interested in a career in either

1109
00:59:42,160 --> 00:59:43,680
Speaker 2: investing or private equity.

1110
00:59:44,920 --> 00:59:45,800
Speaker 3: Two things I would say.

1111
00:59:45,800 --> 00:59:48,160
Speaker 4: One is you need to be AI native these days,

1112
00:59:48,360 --> 00:59:50,400
Speaker 4: which is not the case obviously when I was starting out.

1113
00:59:50,440 --> 00:59:54,439
Speaker 4: And secondly, perseverance, don't give up. Stay in the game

1114
00:59:54,560 --> 00:59:57,080
Speaker 4: because things come and go, you get knocked down, get

1115
00:59:57,120 --> 00:59:59,880
Speaker 4: back up, you stay in the game and new opportunities.

1116
01:00:00,600 --> 01:00:03,440
Speaker 2: Final question, what do you know about the world of

1117
01:00:03,720 --> 01:00:08,840
Speaker 2: private equity, private real estate, credit, infrastructure alternatives today might

1118
01:00:08,840 --> 01:00:11,280
Speaker 2: have been useful back in the nineties when you're really

1119
01:00:11,640 --> 01:00:12,800
Speaker 2: getting your legs under you.

1120
01:00:14,120 --> 01:00:16,160
Speaker 4: This so called eighth wonder of the world, which is

1121
01:00:16,480 --> 01:00:19,800
Speaker 4: the power of compounding. I I wish i'd appreciate that

1122
01:00:19,840 --> 01:00:22,800
Speaker 4: a bit more after thirty years of investing, you'd let

1123
01:00:22,920 --> 01:00:25,560
Speaker 4: something ride for thirty years. Generally, if it's a decent business,

1124
01:00:25,600 --> 01:00:26,640
Speaker 4: it'll be worth a lot of money.

1125
01:00:27,680 --> 01:00:30,920
Speaker 2: Jean Eric, this has been absolutely fascinating. Thank you for

1126
01:00:30,960 --> 01:00:34,160
Speaker 2: being so generous with your time. We have been speaking

1127
01:00:34,160 --> 01:00:39,320
Speaker 2: with Jean Eric Salada, chair of the EQT Group. If

1128
01:00:39,320 --> 01:00:42,000
Speaker 2: you enjoy this conversation, well check out any of the

1129
01:00:42,040 --> 01:00:45,800
Speaker 2: six hundred and forty we've done over the previous fourteen years.

1130
01:00:46,120 --> 01:00:51,200
Speaker 2: You can find those at iTunes, Spotify, Bloomberg YouTube, wherever

1131
01:00:51,280 --> 01:00:54,880
Speaker 2: you get your favorite podcasts. I would be remiss if

1132
01:00:54,920 --> 01:00:57,000
Speaker 2: I didn't thank the crack team that helps put these

1133
01:00:57,000 --> 01:01:02,040
Speaker 2: conversations together each week. Alexis Noriega is my video producer.

1134
01:01:02,120 --> 01:01:06,520
Speaker 2: Sean Russo is my researcher. Anna Luke is our producer.

1135
01:01:07,160 --> 01:01:10,800
Speaker 2: I'm Barry Ritolts. You've been listening to Masters in Business

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01:01:11,360 --> 01:01:12,520
Speaker 2: on Bloomberg Radio