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

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Speaker 2: Thank you both for sitting down with me, and first

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Speaker 2: of all, congratulations. I know people will be viewing this

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Speaker 2: after the race, but you've got to collectively a poll

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Speaker 2: and a sprint win.

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Speaker 3: Oh it's amazing. It's very easy.

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Speaker 2: How is it to see the car yet again with

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Speaker 2: the Carlisle name on it?

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Speaker 1: It's just every time it's exciting. It's like a kid

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Speaker 1: opening a gift and there it is. There's your toy.

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Speaker 1: Except this is an extraordinary toy that they spend years

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Speaker 1: building and then they just keep winning and winning and winning.

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Speaker 2: It's a big toy and expensive toy, and I have

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Speaker 2: to say it does have this element that it feels

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Speaker 2: like a different Carlisle. Typically a Carlisle that operates behind

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Speaker 2: the scenes working with institutional investors. But this is big,

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Speaker 2: This is splashy, not to mention expensive. Why put yourself

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Speaker 2: out there like this?

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Speaker 1: Well, if you think about the evolution of finance the

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Speaker 1: last thirty years, you've seen a remarkable development of prime markets.

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Speaker 1: Private markets are really the primary source of capital for

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Speaker 1: many companies. As that capital continues to grow, the market

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Speaker 1: has just evolved to a place where wealth retail. The

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Speaker 1: breath of what we do globally is just evolved also,

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Speaker 1: and this is just part of the natural evolution.

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Speaker 3: While it might feel.

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Speaker 1: Unique now, I think it's actually not revolutionary at all.

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Speaker 3: It's really just quite evolutionary.

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Speaker 2: And why move that way With bread bull specifically?

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Speaker 1: That was pretty easy. Everything about Oracle red bull Racing

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Speaker 1: is about performance, execution, excellence, So that part was very

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Speaker 1: easy to see and very easy.

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Speaker 3: To relate to as a firm.

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Speaker 1: The sport of one is also global and growing dramatically

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Speaker 1: as we know, as are private markets, and so that

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Speaker 1: all aligned. What made this really special was when Laurent

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Speaker 1: and I spent time together, the teams spend time together,

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Speaker 1: and it was almost like this sort of a very,

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Speaker 1: i don't know, uniquely natural affinity where we all just

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Speaker 1: became best friends really quickly, and and so hey, it's

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Speaker 1: got to be fun too, But it is about performance

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Speaker 1: excellence first and foremost.

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Speaker 2: I was going to say, Laurn, given what Harvey is

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Speaker 2: saying that the finance world in general has been more

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Speaker 2: interested in sport, more interested in f one, have you

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Speaker 2: been fielding a lot of calls before this partnership from

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Speaker 2: Harvey's peers who wanted to get in like he did.

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Speaker 4: You know, in reality, no, it felt it felt very

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Speaker 4: natural straight away with Carlisle. With Harvey, you know, it's

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Speaker 4: this moment where you realize that as a person you

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Speaker 4: are talking with are the best at what they do

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Speaker 4: in the world. And you know, we feel we are

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Speaker 4: quite good at what we do, and what we see

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Speaker 4: with our partners is that we go and try to

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Speaker 4: partners with companies that are the best at what they do.

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Speaker 4: And we had a lot more points of connections were

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Speaker 4: we had these performance obsessions. We have this data driven

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Speaker 4: approach in our very different business, but together with that

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Speaker 4: quest for perfections in everything we are doing, it felt

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Speaker 4: like very very That's what collections, to.

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Speaker 2: Be fair, Harvey. There have been some outspoken critics about

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Speaker 2: the move for private capital to do sponsorships to get

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Speaker 2: invested in sports. Josh Easterly of Sixth Street said at

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Speaker 2: a conference a couple of weeks ago it's representative to

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Speaker 2: him that firms are more concentrated on fine tuning their

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Speaker 2: brand than on the returns themselves. What do you say

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Speaker 2: to that criticism.

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Speaker 1: Our business is exactly where they'ren't just described it. It's

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Speaker 1: first and foremost always about performance. Performance drives everything. If

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Speaker 1: you have performance, you have success. Again, you think about

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Speaker 1: everything they do at Oracle Red Bull Racing, it's all

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Speaker 1: oriented around success. When he references data, we think about data.

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Speaker 1: It's different data. But these are organizations driven around performance excellence.

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Speaker 1: If you don't have performance, you don't have success. In

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Speaker 1: terms of the partnership here, yeah, this is important to

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Speaker 1: be able to reach a global audience. You know, you

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Speaker 1: mentioned sport before. There's a real desire in the world

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Speaker 1: for people to come together around sport and this is

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Speaker 1: truly one of the fastest growing sports in the world,

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Speaker 1: and so it's all very synergistic.

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Speaker 3: But you don't have success with that performance. You can't

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Speaker 3: sacrifice it. It has to stay number one.

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Speaker 2: Well, the concentration of the sport, it's growing quickly. Apple

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Speaker 2: now a US partnership with f one. But again, there

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Speaker 2: is so much institutional money coming in, whether it be

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Speaker 2: Carlisle sponsorship, whether it be other private capital firms taking

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Speaker 2: investments in the team itself. What has that money done

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Speaker 2: to change the sport?

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Speaker 4: Lare on You know, I think as a sport we

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Speaker 4: have spent years and decades to try to have a

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Speaker 4: more global reach. You know, we have been trying to

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Speaker 4: reach out to our fans, We've been trying to reach

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Speaker 4: out to the businesses, and finally it seems that we

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Speaker 4: are now having that incredible growth. You after you reach,

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Speaker 4: we reach more fans, more global audience. We have now

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Speaker 4: forty percent of our global audience in Formula one is female,

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Speaker 4: forty percent that is under thirty five years old. And

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Speaker 4: you know, we also had that common point of connections

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Speaker 4: with Carolan. With Ave, they are trying to to get

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Speaker 4: private markets to have that burder reach, and Phonua one

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Speaker 4: is also trying to get set order reach towards a

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Speaker 4: bigger fan base, and we are enjoying that. As a PRS,

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Speaker 4: we worked a lot to be closer to our funds

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Speaker 4: and you are right, there is so much more coming.

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Speaker 4: We feel we are only at the beginning, especially in

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Speaker 4: the US, in terms of reaching out to the wider audience.

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Speaker 2: It's a fair point. This growth is happening to both

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Speaker 2: of your industries at the same time, Harvey, that growth

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Speaker 2: also coincides with you taking over the leadership of Carlisle

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Speaker 2: in early twenty twenty three. It does feel like a

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Speaker 2: different mindset coming from people institutions coming to buy funds

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Speaker 2: versus you now having to sell them as well to.

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Speaker 3: A broader audience.

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Speaker 2: Is this a big cultural shift you think that you're

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Speaker 2: leading at Carlisle? Is this a Carlisle two point out?

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Speaker 1: Well, I think again, if you think about it's an

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Speaker 1: incredibly competitive world out there. All organizations have to go

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Speaker 1: through constant processes of self analytics, really being humble, asking themselves, Hey,

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Speaker 1: what can we do better tomorrow? What can we do

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Speaker 1: better for any client we serve around the world, whether

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Speaker 1: it's a wealthy individual outside of the United States or.

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Speaker 3: A future retirement.

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Speaker 1: An individual planning for retirement in the United States when

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Speaker 1: no rules change. And so no, I don't know if

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Speaker 1: you're ever through your two point zeros. I think as

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Speaker 1: a leader of any organization, you constantly have to be

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Speaker 1: working with your teams to say, hey, on any given day,

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Speaker 1: what can we learn, what can.

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Speaker 3: We do better? And who can we serve better?

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Speaker 1: And so again, I don't view that any of that

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Speaker 1: as revolutionary. I just think of that as evolutionary. Now,

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Speaker 1: the firm, as you point out, has been on a

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Speaker 1: strong growth trajectory since I've shown up.

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Speaker 3: The team's really rally They've gone an extraordinary job. I'm

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Speaker 3: really quite proud of everything they've done.

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Speaker 2: Is it a cultural shift, though, to go from institutions

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Speaker 2: to have to think about retail and wealth.

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Speaker 1: I wouldn't say it's a cultural shift because at the

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Speaker 1: core of everything that is culturally relevant is performance. What

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Speaker 1: I would say is understanding that end client. So you

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Speaker 1: see a lot in the news today about retirement. It's

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Speaker 1: not really even a sensible question to me whether retirees

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Speaker 1: in the United States should have access to private markets.

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Speaker 1: Firefighters millions of them, teachers millions of them have had

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Speaker 1: access to these solutions through their pension plans. What is

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Speaker 1: relevant is how do you structure them, how do you

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Speaker 1: work with regulators to get it correct. So the real

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Speaker 1: issue about extending private markets more broadly around the world

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Speaker 1: to different clients is just getting it right.

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Speaker 3: But it makes total sense.

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Speaker 1: You know, since two thousand, we've lost half the public

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Speaker 1: companies in the world.

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Speaker 3: So private markets are the market that.

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Speaker 1: People want to allocate capital to, and they shouldn't They

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Speaker 1: shouldn't be deny that opportunity. We just as an industry

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Speaker 1: have to be really thoughtful about how we deliver it right.

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Speaker 2: Well, you coming in as leader, maybe there are some

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Speaker 2: things that also mirror each other. Coming in when there's

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Speaker 2: some tumult at the top, when there's maybe questions of leadership, Lauren,

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Speaker 2: you've had to do that this year as well. Has

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Speaker 2: Harvey given you any advice of what it's like to

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Speaker 2: come in as a leader when there are questions surrounding past.

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Speaker 4: Leadership, of course, of course absolutely, And you know it

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Speaker 4: even goes beyond. You know, when we say why do

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Speaker 4: we why do we partner with Calai? We partners with

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Speaker 4: companies so that we can have that challenge, We can

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Speaker 4: have that exchange about leaderships, about.

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Speaker 2: What we have to know. What the advice was, We

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Speaker 2: need to see behind the behind the scenes.

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Speaker 4: You know, the behind the scene advice is as simple

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Speaker 4: as that. You know, it's all about performance, and performance

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Speaker 4: only comes from people. So get your people in the

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Speaker 4: right conditions to work. Get them in, give them the

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Speaker 4: possibility to express their talents. Make sure they have the

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Speaker 4: right working environment for them to operate at best. That's

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Speaker 4: what they do, that's what we do. That was one

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Speaker 4: of his first advice. All of that is happening in

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Speaker 4: an incredibly technological environment and data reveal you.

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Speaker 2: Were also coming from racing balls where you were having

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Speaker 2: a lot of success with the team, even our performing

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Speaker 2: the team at certain points too. Was it a hard

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Speaker 2: decision to make to come over to Red Bull or

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Speaker 2: was it even a choice at all?

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Speaker 4: You know, I think it was an incredible owner. You know,

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Speaker 4: to receive that call, the first the first feeling you

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Speaker 4: get is it is Red Bull asking you to step up.

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Speaker 4: There there is a sense of loyalty towards the company,

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Speaker 4: so of course it was it was you know, it

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Speaker 4: was a big news and a big surprise, but it's

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Speaker 4: also something that you know you have to jump into

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Speaker 4: as part of the loyalty you have with the group,

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Speaker 4: and you know it's an incredible owner and privileged to

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Speaker 4: be part of a team that has been winning so

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Speaker 4: much in such a competitive environment in the last two decades.

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Speaker 1: Spill mis leaders, we can we can all learn from

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Speaker 1: each other. And what he just talked about was really

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Speaker 1: about talent and talent drives everything.

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Speaker 3: We're in a people business.

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Speaker 1: No matter how much data we collect, no matter how

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Speaker 1: much technology we implement, we're in a data business. He

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Speaker 1: didn't want to get into much detail. He has called

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Speaker 1: me about tire selection and I did call him for

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Speaker 1: advice during the government shutdown, I said, hey, should we

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Speaker 1: brainstorm about these issues?

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Speaker 3: But anyway, that's really just between him and me, his leaders.

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Speaker 2: So for the sprint, you were a hardsoft medium. You

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Speaker 2: were there every call.

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Speaker 3: He doesn't call me live. We usually talk a couple

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Speaker 3: of days before we've.

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Speaker 1: Got a race, and then you know, I'll talk to

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Speaker 1: him like leading up to the government shutdown, But once

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Speaker 1: it happens, I'm doing my thing.

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Speaker 3: He's doing well.

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Speaker 2: Maybe you're the right person for this, Harvey, because I

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Speaker 2: was really struck by something you said last week at

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Speaker 2: a conference. You called yourself as part of being the

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Speaker 2: top of Carlisle also the chief worry officer. Sure, what

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Speaker 2: is your chief worry right now? As the chief worry officer, the.

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Speaker 1: Important thing about being the chief warry officer is there's

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Speaker 1: no list of things that one doesn't worry about. But

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Speaker 1: I think that, you know, part of my role and

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Speaker 1: primarily really what drives my role is exactly what Laurna

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Speaker 1: said about enabling the team, motivating the team, bringing the

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Speaker 1: team together, ensuring that the team, you know, feels good

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Speaker 1: about success but not too good, always staying hungry but

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Speaker 1: at the same time humble. They've had really remarkable success

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Speaker 1: since he stepped in. I mean, it is a extraordinary

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Speaker 1: with this with this man leader and friend and the

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Speaker 1: whole team and Max.

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Speaker 3: Have achieved like it's really needs to be underscored.

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Speaker 1: I think in terms of worries, the key things about

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Speaker 1: worrying is anticipating things that may happen, but allowing your

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Speaker 1: teams to really digest that information. So at this particular

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Speaker 1: point in time, as we said here, you know, there's

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Speaker 1: a lot of people talking about markets being priced for perfection,

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Speaker 1: or geopolitics or basically the way governments are relating, and

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Speaker 1: trends that have existed for thirty forty fifty years that

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Speaker 1: are somewhat reversing. I would put all these things sort

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Speaker 1: of on my list of things I focus on. But

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Speaker 1: there's nothing as I sit here this morning, that I'm

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Speaker 1: worried about, you know, other than the that you know,

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Speaker 1: we're going to win every race for the rest of

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Speaker 1: the season, which also I will now say was part

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Speaker 1: of our contractual agreement.

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Speaker 5: Yeah, oh wow, Okay, Well, if something goes wrong we

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Speaker 5: don't win, we're going to check in on this. Not

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Speaker 5: at all to that point, Max has been closing the gap.

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Speaker 5: What needs to go right in order for that not

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Speaker 5: only to be closed, but to be surpassed.

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Speaker 4: Look, we take it raised by race as much as

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Speaker 4: the world would like us to talk about the World Championships,

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Speaker 4: because yes, mathematically it has been reopened thanks to the

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Speaker 4: string of success we have been having. The true seas,

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Speaker 4: we take it raised by race. We even take it

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Speaker 4: day by day sessionization. That's how we keep the right focus,

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Speaker 4: the right intensity in every decisions we make, and that's

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Speaker 4: you know the rest will be the consequence of that level.

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Speaker 2: Only twenty six must be on your mind, and especially

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Speaker 2: the second set I think is on a lot of

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Speaker 2: people's mind. You take it day by day, but at

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Speaker 2: what point do you think you'll have the information you

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Speaker 2: need to make that decision for the second seat next year.

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Speaker 4: You know, we are in a very comfortable situation. We

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Speaker 4: have the year contracts on our site for all of

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Speaker 4: our drivers. They are great kids. We want to give

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Speaker 4: them as much time as possible to show us what

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Speaker 4: they want to show us. So of course we don't

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Speaker 4: want to wait until the last race, because you know,

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Speaker 4: if somebody loses seat, we need to be fair with

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Speaker 4: this person. But we think a couple of prices would

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Speaker 4: probably make a core and.

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Speaker 2: What are you focusing on the priorities for making that decision.

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Speaker 4: It's super simple, is the same then for every single

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Speaker 4: business it's performance of performance only.

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Speaker 2: Performance only. Harvey, in thinking about where the world goes

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Speaker 2: from here, I'd be remissified didn't bring up the chief

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Speaker 2: worry of the moment, and that is concern about credit conditions.

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Speaker 2: You've made it very clear that some of the issues,

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Speaker 2: be it first brands, be it some of the regional

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Speaker 2: banks more recently, if it is a cockroach, it's not

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Speaker 2: termites that are destroying the foundation of the building. They

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Speaker 2: might be a one off. At what point do you

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Speaker 2: start to get concerned that maybe it doesn't necessarily show

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Speaker 2: that the whole thing's going to crumble, but it's a

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Speaker 2: late cycle and there have been mistakes made that might

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Speaker 2: pop up more frequently.

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Speaker 1: Well, I think a lot of the questions that are

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Speaker 1: being asked make a lot of sense. You know, since

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Speaker 1: the financial crisis, we've had generally speaking, very stimulative policy

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Speaker 1: in all respects, quantitative easing, fiscal policy through the pandemic

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Speaker 1: and beyond, and so it's unsurprising when you look back,

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Speaker 1: of course, surprising when we came out of the financial crisis,

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Speaker 1: but unsurprising when you look back the trajectory of markets

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Speaker 1: that we've experienced. Anytime you're very late cycle like this,

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Speaker 1: any news item could be disruptive to a market on

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Speaker 1: any given day. I think that we haven't had really

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Speaker 1: a credit or session driven credit cycle in a very, very,

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Speaker 1: very long time, and so people are right to be

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Speaker 1: concerned when they see credit under performance. Having said that,

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Speaker 1: the bigger questions around systemic risk, or when you say

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Speaker 1: will things crumble, Just because we haven't had a credit

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Speaker 1: cycle in a long time doesn't mean if we go

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Speaker 1: through a credit cycle, which inevitably we will, that's a

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Speaker 1: certainty that things will crumble. I think the market structure

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Speaker 1: is such today that it's pretty resilient. And when we

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Speaker 1: look at our data across our portfolio companies, as we've

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Speaker 1: talked about any there are seven hundred thousand employees and

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Speaker 1: our portfolio companies around the world, they're twenty four hundred

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Speaker 1: at Carlisle driving all this activity. When we look at

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Speaker 1: that data today, that data suggests that companies are growing.

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Speaker 1: Employment is steady, inflation is a little sticky, but there's

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Speaker 1: nothing in the immediate horizon that suggests that as you

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Speaker 1: would say things are crumbling. Having said that late cycle,

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Speaker 1: it should be on a worry list.

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Speaker 2: It should Okay, makes sense as chief worry officer, what

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Speaker 2: specifically is the worry Then if it's not system.

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Speaker 1: We should get to a point where markets are let's say,

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Speaker 1: very stretched, credit spreads are very tight. It's about how

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Speaker 1: you deploy marginal capital from our perspective, and so when

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Speaker 1: we think about it again, we're not in the business

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Speaker 1: of avoiding risk. That's not the business we're in. We're

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Speaker 1: in the risk taking business. We have to be in

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Speaker 1: the business of pricing it correctly. So anytime your late

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Speaker 1: cycle you want to be very, very thoughtful about that

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Speaker 1: marginal risk deployment. Last year we deployed billions of capital,

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Speaker 1: sometimes in Europe, sometimes in the US, sometimes in Asia.

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Speaker 1: But you have to be looking around the world for

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Speaker 1: the capital with the right risk return. And that's what

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Speaker 1: we do on behalf of all of our clients.

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Speaker 2: Just to bring this back around, there have been some

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Speaker 2: concerns that with the amount of money coming in from

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Speaker 2: wealth that that gets harder to do just because there's

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Speaker 2: that much more money that needs to be deployed, and

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Speaker 2: maybe you go into things that you otherwise wouldn't have

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Speaker 2: because that money needs to be put to work. Is

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Speaker 2: that a fair concern?

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Speaker 1: Well, I think it's a it's a fair concern if

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Speaker 1: you're not thoughtful about deployment. In the history of cycles,

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Speaker 1: what you tend to see is you tend to see

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Speaker 1: too much capital coming into a space, chasing chasing too

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Speaker 1: little return. It's our responsibility to manage that capital thoughtfully,

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Speaker 1: and so that's our obligation.

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Speaker 3: That's how we think it.

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Speaker 2: Is there a concern that others aren't doing that as

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Speaker 2: this money's coming in.

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Speaker 1: I think any time you go through a long cycle,

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Speaker 1: you're going to see marginal participants who may not make

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Speaker 1: the best judgments. But again, your point is whether or not.

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Speaker 1: Really what you're getting is whether or not it's systemic

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Speaker 1: or not. I don't see that right now.

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Speaker 2: Well, just before we let both of you go the

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Speaker 2: first big splashy sponsorship, more more to come between you two,

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Speaker 2: between Carlisle and other sports.

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Speaker 1: Right now, we're pretty through with this partnership and we

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Speaker 1: just continue to root for our friend here on the

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Speaker 1: whole team in Max.

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Speaker 3: And so now we're quite satisfied.

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Speaker 4: And you know, on our side, we are very proud

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Speaker 4: that Carlile is the first ever global investment firms to

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Speaker 4: partners in Formula one, you know, is the first and

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Speaker 4: also for the sport to be connected with as part

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Speaker 4: of the business. And we are very poor that they

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Speaker 4: chose or curricle racing.

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Speaker 3: Yeah, we're thrilled with it.

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Speaker 2: We're all excited to watch watch the race today with

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Speaker 2: the Carlisles signed zipping by and good luck and congratulations

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Speaker 2: already for this weekend.

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Speaker 4: Thank you both so much.

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Speaker 3: Thanks Danny