WEBVTT - Harvey Schwartz and Laurent Mekies Talk F1 Partnership and Recent Success

0:00:02.520 --> 0:00:07.080
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:07.600 --> 0:00:09.520
<v Speaker 2>Thank you both for sitting down with me, and first

0:00:09.560 --> 0:00:12.119
<v Speaker 2>of all, congratulations. I know people will be viewing this

0:00:12.200 --> 0:00:15.800
<v Speaker 2>after the race, but you've got to collectively a poll

0:00:15.960 --> 0:00:16.600
<v Speaker 2>and a sprint win.

0:00:16.720 --> 0:00:19.560
<v Speaker 3>Oh it's amazing. It's very easy.

0:00:19.960 --> 0:00:21.759
<v Speaker 2>How is it to see the car yet again with

0:00:22.239 --> 0:00:23.720
<v Speaker 2>the Carlisle name on it?

0:00:23.680 --> 0:00:27.040
<v Speaker 1>It's just every time it's exciting. It's like a kid

0:00:27.080 --> 0:00:30.120
<v Speaker 1>opening a gift and there it is. There's your toy.

0:00:30.160 --> 0:00:32.800
<v Speaker 1>Except this is an extraordinary toy that they spend years

0:00:32.840 --> 0:00:34.920
<v Speaker 1>building and then they just keep winning and winning and winning.

0:00:35.080 --> 0:00:38.000
<v Speaker 2>It's a big toy and expensive toy, and I have

0:00:38.080 --> 0:00:40.560
<v Speaker 2>to say it does have this element that it feels

0:00:40.600 --> 0:00:44.480
<v Speaker 2>like a different Carlisle. Typically a Carlisle that operates behind

0:00:44.479 --> 0:00:47.440
<v Speaker 2>the scenes working with institutional investors. But this is big,

0:00:47.680 --> 0:00:51.080
<v Speaker 2>This is splashy, not to mention expensive. Why put yourself

0:00:51.120 --> 0:00:51.800
<v Speaker 2>out there like this?

0:00:52.600 --> 0:00:56.640
<v Speaker 1>Well, if you think about the evolution of finance the

0:00:56.720 --> 0:01:00.520
<v Speaker 1>last thirty years, you've seen a remarkable development of prime markets.

0:01:00.560 --> 0:01:03.200
<v Speaker 1>Private markets are really the primary source of capital for

0:01:03.280 --> 0:01:07.119
<v Speaker 1>many companies. As that capital continues to grow, the market

0:01:07.160 --> 0:01:11.039
<v Speaker 1>has just evolved to a place where wealth retail. The

0:01:11.080 --> 0:01:15.720
<v Speaker 1>breath of what we do globally is just evolved also,

0:01:15.840 --> 0:01:17.560
<v Speaker 1>and this is just part of the natural evolution.

0:01:17.920 --> 0:01:19.440
<v Speaker 3>While it might feel.

0:01:19.560 --> 0:01:23.600
<v Speaker 1>Unique now, I think it's actually not revolutionary at all.

0:01:23.640 --> 0:01:25.000
<v Speaker 3>It's really just quite evolutionary.

0:01:25.040 --> 0:01:27.360
<v Speaker 2>And why move that way With bread bull specifically?

0:01:27.520 --> 0:01:32.720
<v Speaker 1>That was pretty easy. Everything about Oracle red bull Racing

0:01:34.360 --> 0:01:41.600
<v Speaker 1>is about performance, execution, excellence, So that part was very

0:01:41.640 --> 0:01:43.200
<v Speaker 1>easy to see and very easy.

0:01:42.959 --> 0:01:44.000
<v Speaker 3>To relate to as a firm.

0:01:44.400 --> 0:01:48.280
<v Speaker 1>The sport of one is also global and growing dramatically

0:01:48.360 --> 0:01:51.240
<v Speaker 1>as we know, as are private markets, and so that

0:01:51.400 --> 0:01:56.000
<v Speaker 1>all aligned. What made this really special was when Laurent

0:01:56.040 --> 0:01:59.040
<v Speaker 1>and I spent time together, the teams spend time together,

0:01:59.040 --> 0:02:00.440
<v Speaker 1>and it was almost like this sort of a very,

0:02:01.640 --> 0:02:04.640
<v Speaker 1>i don't know, uniquely natural affinity where we all just

0:02:04.680 --> 0:02:07.240
<v Speaker 1>became best friends really quickly, and and so hey, it's

0:02:07.280 --> 0:02:09.160
<v Speaker 1>got to be fun too, But it is about performance

0:02:09.200 --> 0:02:10.240
<v Speaker 1>excellence first and foremost.

0:02:10.240 --> 0:02:11.919
<v Speaker 2>I was going to say, Laurn, given what Harvey is

0:02:11.919 --> 0:02:14.720
<v Speaker 2>saying that the finance world in general has been more

0:02:14.720 --> 0:02:17.400
<v Speaker 2>interested in sport, more interested in f one, have you

0:02:17.480 --> 0:02:20.040
<v Speaker 2>been fielding a lot of calls before this partnership from

0:02:20.160 --> 0:02:22.600
<v Speaker 2>Harvey's peers who wanted to get in like he did.

0:02:22.919 --> 0:02:25.840
<v Speaker 4>You know, in reality, no, it felt it felt very

0:02:25.919 --> 0:02:29.040
<v Speaker 4>natural straight away with Carlisle. With Harvey, you know, it's

0:02:29.040 --> 0:02:31.440
<v Speaker 4>this moment where you realize that as a person you

0:02:31.480 --> 0:02:35.000
<v Speaker 4>are talking with are the best at what they do

0:02:35.080 --> 0:02:37.000
<v Speaker 4>in the world. And you know, we feel we are

0:02:37.440 --> 0:02:40.160
<v Speaker 4>quite good at what we do, and what we see

0:02:40.240 --> 0:02:42.720
<v Speaker 4>with our partners is that we go and try to

0:02:43.160 --> 0:02:45.320
<v Speaker 4>partners with companies that are the best at what they do.

0:02:45.400 --> 0:02:48.600
<v Speaker 4>And we had a lot more points of connections were

0:02:48.720 --> 0:02:52.320
<v Speaker 4>we had these performance obsessions. We have this data driven

0:02:52.360 --> 0:02:57.040
<v Speaker 4>approach in our very different business, but together with that

0:02:57.360 --> 0:02:59.880
<v Speaker 4>quest for perfections in everything we are doing, it felt

0:02:59.880 --> 0:03:01.480
<v Speaker 4>like very very That's what collections, to.

0:03:01.440 --> 0:03:04.640
<v Speaker 2>Be fair, Harvey. There have been some outspoken critics about

0:03:04.680 --> 0:03:07.840
<v Speaker 2>the move for private capital to do sponsorships to get

0:03:07.880 --> 0:03:11.680
<v Speaker 2>invested in sports. Josh Easterly of Sixth Street said at

0:03:11.720 --> 0:03:14.359
<v Speaker 2>a conference a couple of weeks ago it's representative to

0:03:14.440 --> 0:03:17.160
<v Speaker 2>him that firms are more concentrated on fine tuning their

0:03:17.160 --> 0:03:20.120
<v Speaker 2>brand than on the returns themselves. What do you say

0:03:20.160 --> 0:03:21.560
<v Speaker 2>to that criticism.

0:03:22.320 --> 0:03:25.239
<v Speaker 1>Our business is exactly where they'ren't just described it. It's

0:03:25.480 --> 0:03:30.040
<v Speaker 1>first and foremost always about performance. Performance drives everything. If

0:03:30.040 --> 0:03:33.480
<v Speaker 1>you have performance, you have success. Again, you think about

0:03:33.520 --> 0:03:36.040
<v Speaker 1>everything they do at Oracle Red Bull Racing, it's all

0:03:36.040 --> 0:03:39.680
<v Speaker 1>oriented around success. When he references data, we think about data.

0:03:39.800 --> 0:03:43.760
<v Speaker 1>It's different data. But these are organizations driven around performance excellence.

0:03:44.120 --> 0:03:47.640
<v Speaker 1>If you don't have performance, you don't have success. In

0:03:47.720 --> 0:03:51.360
<v Speaker 1>terms of the partnership here, yeah, this is important to

0:03:51.360 --> 0:03:53.880
<v Speaker 1>be able to reach a global audience. You know, you

0:03:53.960 --> 0:03:57.080
<v Speaker 1>mentioned sport before. There's a real desire in the world

0:03:57.120 --> 0:04:00.000
<v Speaker 1>for people to come together around sport and this is

0:04:00.560 --> 0:04:02.920
<v Speaker 1>truly one of the fastest growing sports in the world,

0:04:02.960 --> 0:04:04.800
<v Speaker 1>and so it's all very synergistic.

0:04:05.000 --> 0:04:07.200
<v Speaker 3>But you don't have success with that performance. You can't

0:04:07.200 --> 0:04:08.840
<v Speaker 3>sacrifice it. It has to stay number one.

0:04:08.880 --> 0:04:12.000
<v Speaker 2>Well, the concentration of the sport, it's growing quickly. Apple

0:04:12.280 --> 0:04:15.120
<v Speaker 2>now a US partnership with f one. But again, there

0:04:15.160 --> 0:04:18.440
<v Speaker 2>is so much institutional money coming in, whether it be

0:04:18.520 --> 0:04:22.160
<v Speaker 2>Carlisle sponsorship, whether it be other private capital firms taking

0:04:22.200 --> 0:04:25.120
<v Speaker 2>investments in the team itself. What has that money done

0:04:25.200 --> 0:04:26.159
<v Speaker 2>to change the sport?

0:04:26.200 --> 0:04:28.960
<v Speaker 4>Lare on You know, I think as a sport we

0:04:29.040 --> 0:04:31.839
<v Speaker 4>have spent years and decades to try to have a

0:04:31.880 --> 0:04:34.200
<v Speaker 4>more global reach. You know, we have been trying to

0:04:34.200 --> 0:04:36.000
<v Speaker 4>reach out to our fans, We've been trying to reach

0:04:36.000 --> 0:04:39.560
<v Speaker 4>out to the businesses, and finally it seems that we

0:04:39.600 --> 0:04:43.279
<v Speaker 4>are now having that incredible growth. You after you reach,

0:04:43.839 --> 0:04:46.400
<v Speaker 4>we reach more fans, more global audience. We have now

0:04:46.760 --> 0:04:50.640
<v Speaker 4>forty percent of our global audience in Formula one is female,

0:04:50.920 --> 0:04:53.280
<v Speaker 4>forty percent that is under thirty five years old. And

0:04:53.560 --> 0:04:57.039
<v Speaker 4>you know, we also had that common point of connections

0:04:57.040 --> 0:05:01.000
<v Speaker 4>with Carolan. With Ave, they are trying to to get

0:05:01.120 --> 0:05:04.880
<v Speaker 4>private markets to have that burder reach, and Phonua one

0:05:04.920 --> 0:05:08.000
<v Speaker 4>is also trying to get set order reach towards a

0:05:08.000 --> 0:05:12.359
<v Speaker 4>bigger fan base, and we are enjoying that. As a PRS,

0:05:12.600 --> 0:05:15.880
<v Speaker 4>we worked a lot to be closer to our funds

0:05:15.920 --> 0:05:18.480
<v Speaker 4>and you are right, there is so much more coming.

0:05:18.520 --> 0:05:21.039
<v Speaker 4>We feel we are only at the beginning, especially in

0:05:21.080 --> 0:05:24.560
<v Speaker 4>the US, in terms of reaching out to the wider audience.

0:05:24.560 --> 0:05:27.039
<v Speaker 2>It's a fair point. This growth is happening to both

0:05:27.080 --> 0:05:29.840
<v Speaker 2>of your industries at the same time, Harvey, that growth

0:05:29.880 --> 0:05:33.080
<v Speaker 2>also coincides with you taking over the leadership of Carlisle

0:05:33.160 --> 0:05:35.760
<v Speaker 2>in early twenty twenty three. It does feel like a

0:05:35.760 --> 0:05:40.200
<v Speaker 2>different mindset coming from people institutions coming to buy funds

0:05:40.279 --> 0:05:42.800
<v Speaker 2>versus you now having to sell them as well to.

0:05:42.920 --> 0:05:43.880
<v Speaker 3>A broader audience.

0:05:44.480 --> 0:05:46.360
<v Speaker 2>Is this a big cultural shift you think that you're

0:05:46.440 --> 0:05:49.120
<v Speaker 2>leading at Carlisle? Is this a Carlisle two point out?

0:05:50.400 --> 0:05:54.120
<v Speaker 1>Well, I think again, if you think about it's an

0:05:54.160 --> 0:05:58.800
<v Speaker 1>incredibly competitive world out there. All organizations have to go

0:05:58.880 --> 0:06:06.640
<v Speaker 1>through constant processes of self analytics, really being humble, asking themselves, Hey,

0:06:06.680 --> 0:06:08.680
<v Speaker 1>what can we do better tomorrow? What can we do

0:06:08.720 --> 0:06:11.040
<v Speaker 1>better for any client we serve around the world, whether

0:06:11.080 --> 0:06:14.720
<v Speaker 1>it's a wealthy individual outside of the United States or.

0:06:14.680 --> 0:06:16.360
<v Speaker 3>A future retirement.

0:06:18.080 --> 0:06:20.560
<v Speaker 1>An individual planning for retirement in the United States when

0:06:20.640 --> 0:06:24.240
<v Speaker 1>no rules change. And so no, I don't know if

0:06:24.240 --> 0:06:26.719
<v Speaker 1>you're ever through your two point zeros. I think as

0:06:26.760 --> 0:06:29.719
<v Speaker 1>a leader of any organization, you constantly have to be

0:06:29.720 --> 0:06:32.239
<v Speaker 1>working with your teams to say, hey, on any given day,

0:06:32.680 --> 0:06:34.200
<v Speaker 1>what can we learn, what can.

0:06:34.080 --> 0:06:36.599
<v Speaker 3>We do better? And who can we serve better?

0:06:36.760 --> 0:06:39.120
<v Speaker 1>And so again, I don't view that any of that

0:06:39.200 --> 0:06:41.560
<v Speaker 1>as revolutionary. I just think of that as evolutionary. Now,

0:06:41.560 --> 0:06:43.520
<v Speaker 1>the firm, as you point out, has been on a

0:06:43.560 --> 0:06:45.440
<v Speaker 1>strong growth trajectory since I've shown up.

0:06:45.640 --> 0:06:47.840
<v Speaker 3>The team's really rally They've gone an extraordinary job. I'm

0:06:47.839 --> 0:06:49.120
<v Speaker 3>really quite proud of everything they've done.

0:06:49.200 --> 0:06:51.719
<v Speaker 2>Is it a cultural shift, though, to go from institutions

0:06:51.760 --> 0:06:53.440
<v Speaker 2>to have to think about retail and wealth.

0:06:54.200 --> 0:06:56.039
<v Speaker 1>I wouldn't say it's a cultural shift because at the

0:06:56.040 --> 0:07:00.640
<v Speaker 1>core of everything that is culturally relevant is performance. What

0:07:00.680 --> 0:07:05.359
<v Speaker 1>I would say is understanding that end client. So you

0:07:05.400 --> 0:07:08.760
<v Speaker 1>see a lot in the news today about retirement. It's

0:07:08.839 --> 0:07:12.760
<v Speaker 1>not really even a sensible question to me whether retirees

0:07:12.800 --> 0:07:15.920
<v Speaker 1>in the United States should have access to private markets.

0:07:17.280 --> 0:07:20.640
<v Speaker 1>Firefighters millions of them, teachers millions of them have had

0:07:20.720 --> 0:07:24.120
<v Speaker 1>access to these solutions through their pension plans. What is

0:07:24.160 --> 0:07:26.040
<v Speaker 1>relevant is how do you structure them, how do you

0:07:26.040 --> 0:07:28.280
<v Speaker 1>work with regulators to get it correct. So the real

0:07:28.320 --> 0:07:32.520
<v Speaker 1>issue about extending private markets more broadly around the world

0:07:32.560 --> 0:07:34.640
<v Speaker 1>to different clients is just getting it right.

0:07:34.840 --> 0:07:35.960
<v Speaker 3>But it makes total sense.

0:07:36.120 --> 0:07:39.480
<v Speaker 1>You know, since two thousand, we've lost half the public

0:07:39.480 --> 0:07:40.280
<v Speaker 1>companies in the world.

0:07:41.120 --> 0:07:43.679
<v Speaker 3>So private markets are the market that.

0:07:43.760 --> 0:07:47.000
<v Speaker 1>People want to allocate capital to, and they shouldn't They

0:07:47.000 --> 0:07:49.800
<v Speaker 1>shouldn't be deny that opportunity. We just as an industry

0:07:49.800 --> 0:07:51.720
<v Speaker 1>have to be really thoughtful about how we deliver it right.

0:07:51.760 --> 0:07:54.160
<v Speaker 2>Well, you coming in as leader, maybe there are some

0:07:54.240 --> 0:07:56.960
<v Speaker 2>things that also mirror each other. Coming in when there's

0:07:57.640 --> 0:08:02.160
<v Speaker 2>some tumult at the top, when there's maybe questions of leadership, Lauren,

0:08:02.200 --> 0:08:04.160
<v Speaker 2>you've had to do that this year as well. Has

0:08:04.160 --> 0:08:06.280
<v Speaker 2>Harvey given you any advice of what it's like to

0:08:06.320 --> 0:08:09.400
<v Speaker 2>come in as a leader when there are questions surrounding past.

0:08:09.240 --> 0:08:12.080
<v Speaker 4>Leadership, of course, of course absolutely, And you know it

0:08:12.240 --> 0:08:14.280
<v Speaker 4>even goes beyond. You know, when we say why do

0:08:14.320 --> 0:08:17.320
<v Speaker 4>we why do we partner with Calai? We partners with

0:08:17.600 --> 0:08:20.000
<v Speaker 4>companies so that we can have that challenge, We can

0:08:20.080 --> 0:08:23.040
<v Speaker 4>have that exchange about leaderships, about.

0:08:22.800 --> 0:08:24.560
<v Speaker 2>What we have to know. What the advice was, We

0:08:24.600 --> 0:08:26.160
<v Speaker 2>need to see behind the behind the scenes.

0:08:26.400 --> 0:08:30.120
<v Speaker 4>You know, the behind the scene advice is as simple

0:08:30.160 --> 0:08:33.559
<v Speaker 4>as that. You know, it's all about performance, and performance

0:08:33.640 --> 0:08:36.600
<v Speaker 4>only comes from people. So get your people in the

0:08:36.640 --> 0:08:39.360
<v Speaker 4>right conditions to work. Get them in, give them the

0:08:39.400 --> 0:08:42.000
<v Speaker 4>possibility to express their talents. Make sure they have the

0:08:42.080 --> 0:08:45.160
<v Speaker 4>right working environment for them to operate at best. That's

0:08:45.160 --> 0:08:47.640
<v Speaker 4>what they do, that's what we do. That was one

0:08:47.640 --> 0:08:50.800
<v Speaker 4>of his first advice. All of that is happening in

0:08:50.840 --> 0:08:54.280
<v Speaker 4>an incredibly technological environment and data reveal you.

0:08:54.200 --> 0:08:56.320
<v Speaker 2>Were also coming from racing balls where you were having

0:08:56.360 --> 0:08:59.400
<v Speaker 2>a lot of success with the team, even our performing

0:08:59.640 --> 0:09:02.319
<v Speaker 2>the team at certain points too. Was it a hard

0:09:02.320 --> 0:09:04.640
<v Speaker 2>decision to make to come over to Red Bull or

0:09:04.679 --> 0:09:06.400
<v Speaker 2>was it even a choice at all?

0:09:08.040 --> 0:09:12.000
<v Speaker 4>You know, I think it was an incredible owner. You know,

0:09:12.040 --> 0:09:15.120
<v Speaker 4>to receive that call, the first the first feeling you

0:09:15.200 --> 0:09:18.440
<v Speaker 4>get is it is Red Bull asking you to step up.

0:09:18.440 --> 0:09:21.480
<v Speaker 4>There there is a sense of loyalty towards the company,

0:09:21.720 --> 0:09:23.839
<v Speaker 4>so of course it was it was you know, it

0:09:24.000 --> 0:09:28.240
<v Speaker 4>was a big news and a big surprise, but it's

0:09:28.240 --> 0:09:30.800
<v Speaker 4>also something that you know you have to jump into

0:09:31.520 --> 0:09:34.000
<v Speaker 4>as part of the loyalty you have with the group,

0:09:34.200 --> 0:09:37.120
<v Speaker 4>and you know it's an incredible owner and privileged to

0:09:37.160 --> 0:09:39.400
<v Speaker 4>be part of a team that has been winning so

0:09:39.600 --> 0:09:42.240
<v Speaker 4>much in such a competitive environment in the last two decades.

0:09:42.240 --> 0:09:44.760
<v Speaker 1>Spill mis leaders, we can we can all learn from

0:09:44.800 --> 0:09:46.400
<v Speaker 1>each other. And what he just talked about was really

0:09:46.400 --> 0:09:47.760
<v Speaker 1>about talent and talent drives everything.

0:09:47.800 --> 0:09:48.760
<v Speaker 3>We're in a people business.

0:09:49.080 --> 0:09:51.360
<v Speaker 1>No matter how much data we collect, no matter how

0:09:51.440 --> 0:09:54.599
<v Speaker 1>much technology we implement, we're in a data business. He

0:09:54.600 --> 0:09:56.320
<v Speaker 1>didn't want to get into much detail. He has called

0:09:56.320 --> 0:09:59.240
<v Speaker 1>me about tire selection and I did call him for

0:09:59.280 --> 0:10:01.720
<v Speaker 1>advice during the government shutdown, I said, hey, should we

0:10:01.720 --> 0:10:02.920
<v Speaker 1>brainstorm about these issues?

0:10:02.920 --> 0:10:05.280
<v Speaker 3>But anyway, that's really just between him and me, his leaders.

0:10:05.320 --> 0:10:07.760
<v Speaker 2>So for the sprint, you were a hardsoft medium. You

0:10:07.760 --> 0:10:08.480
<v Speaker 2>were there every call.

0:10:08.640 --> 0:10:10.320
<v Speaker 3>He doesn't call me live. We usually talk a couple

0:10:10.280 --> 0:10:11.400
<v Speaker 3>of days before we've.

0:10:11.280 --> 0:10:13.040
<v Speaker 1>Got a race, and then you know, I'll talk to

0:10:13.080 --> 0:10:15.000
<v Speaker 1>him like leading up to the government shutdown, But once

0:10:15.040 --> 0:10:16.079
<v Speaker 1>it happens, I'm doing my thing.

0:10:16.120 --> 0:10:16.600
<v Speaker 3>He's doing well.

0:10:16.640 --> 0:10:18.400
<v Speaker 2>Maybe you're the right person for this, Harvey, because I

0:10:18.440 --> 0:10:20.480
<v Speaker 2>was really struck by something you said last week at

0:10:20.520 --> 0:10:23.120
<v Speaker 2>a conference. You called yourself as part of being the

0:10:23.160 --> 0:10:26.760
<v Speaker 2>top of Carlisle also the chief worry officer. Sure, what

0:10:26.880 --> 0:10:29.480
<v Speaker 2>is your chief worry right now? As the chief worry officer, the.

0:10:29.520 --> 0:10:31.440
<v Speaker 1>Important thing about being the chief warry officer is there's

0:10:31.480 --> 0:10:34.080
<v Speaker 1>no list of things that one doesn't worry about. But

0:10:34.160 --> 0:10:38.240
<v Speaker 1>I think that, you know, part of my role and

0:10:38.440 --> 0:10:42.960
<v Speaker 1>primarily really what drives my role is exactly what Laurna

0:10:43.000 --> 0:10:46.800
<v Speaker 1>said about enabling the team, motivating the team, bringing the

0:10:46.840 --> 0:10:51.160
<v Speaker 1>team together, ensuring that the team, you know, feels good

0:10:51.160 --> 0:10:54.120
<v Speaker 1>about success but not too good, always staying hungry but

0:10:54.120 --> 0:10:58.440
<v Speaker 1>at the same time humble. They've had really remarkable success

0:10:58.480 --> 0:11:00.840
<v Speaker 1>since he stepped in. I mean, it is a extraordinary

0:11:00.920 --> 0:11:05.400
<v Speaker 1>with this with this man leader and friend and the

0:11:05.440 --> 0:11:06.839
<v Speaker 1>whole team and Max.

0:11:06.600 --> 0:11:09.760
<v Speaker 3>Have achieved like it's really needs to be underscored.

0:11:10.080 --> 0:11:12.800
<v Speaker 1>I think in terms of worries, the key things about

0:11:12.840 --> 0:11:18.120
<v Speaker 1>worrying is anticipating things that may happen, but allowing your

0:11:18.160 --> 0:11:20.880
<v Speaker 1>teams to really digest that information. So at this particular

0:11:20.960 --> 0:11:22.559
<v Speaker 1>point in time, as we said here, you know, there's

0:11:22.559 --> 0:11:24.800
<v Speaker 1>a lot of people talking about markets being priced for perfection,

0:11:25.559 --> 0:11:30.080
<v Speaker 1>or geopolitics or basically the way governments are relating, and

0:11:30.120 --> 0:11:33.800
<v Speaker 1>trends that have existed for thirty forty fifty years that

0:11:33.840 --> 0:11:36.640
<v Speaker 1>are somewhat reversing. I would put all these things sort

0:11:36.679 --> 0:11:38.880
<v Speaker 1>of on my list of things I focus on. But

0:11:38.920 --> 0:11:40.920
<v Speaker 1>there's nothing as I sit here this morning, that I'm

0:11:40.960 --> 0:11:44.959
<v Speaker 1>worried about, you know, other than the that you know,

0:11:45.080 --> 0:11:46.679
<v Speaker 1>we're going to win every race for the rest of

0:11:46.720 --> 0:11:49.400
<v Speaker 1>the season, which also I will now say was part

0:11:49.440 --> 0:11:50.600
<v Speaker 1>of our contractual agreement.

0:11:50.800 --> 0:11:53.240
<v Speaker 5>Yeah, oh wow, Okay, Well, if something goes wrong we

0:11:53.320 --> 0:11:55.839
<v Speaker 5>don't win, we're going to check in on this. Not

0:11:56.000 --> 0:11:58.959
<v Speaker 5>at all to that point, Max has been closing the gap.

0:11:59.280 --> 0:12:01.440
<v Speaker 5>What needs to go right in order for that not

0:12:01.480 --> 0:12:03.559
<v Speaker 5>only to be closed, but to be surpassed.

0:12:03.880 --> 0:12:06.960
<v Speaker 4>Look, we take it raised by race as much as

0:12:06.960 --> 0:12:09.600
<v Speaker 4>the world would like us to talk about the World Championships,

0:12:09.640 --> 0:12:13.199
<v Speaker 4>because yes, mathematically it has been reopened thanks to the

0:12:13.360 --> 0:12:15.640
<v Speaker 4>string of success we have been having. The true seas,

0:12:15.640 --> 0:12:18.400
<v Speaker 4>we take it raised by race. We even take it

0:12:18.679 --> 0:12:23.319
<v Speaker 4>day by day sessionization. That's how we keep the right focus,

0:12:23.520 --> 0:12:27.559
<v Speaker 4>the right intensity in every decisions we make, and that's

0:12:28.120 --> 0:12:30.960
<v Speaker 4>you know the rest will be the consequence of that level.

0:12:31.080 --> 0:12:33.439
<v Speaker 2>Only twenty six must be on your mind, and especially

0:12:33.559 --> 0:12:35.080
<v Speaker 2>the second set I think is on a lot of

0:12:35.080 --> 0:12:37.240
<v Speaker 2>people's mind. You take it day by day, but at

0:12:37.280 --> 0:12:39.240
<v Speaker 2>what point do you think you'll have the information you

0:12:39.360 --> 0:12:42.240
<v Speaker 2>need to make that decision for the second seat next year.

0:12:43.559 --> 0:12:46.800
<v Speaker 4>You know, we are in a very comfortable situation. We

0:12:46.920 --> 0:12:49.880
<v Speaker 4>have the year contracts on our site for all of

0:12:49.880 --> 0:12:53.560
<v Speaker 4>our drivers. They are great kids. We want to give

0:12:53.600 --> 0:12:56.280
<v Speaker 4>them as much time as possible to show us what

0:12:56.400 --> 0:12:58.319
<v Speaker 4>they want to show us. So of course we don't

0:12:58.360 --> 0:12:59.920
<v Speaker 4>want to wait until the last race, because you know,

0:13:00.000 --> 0:13:03.160
<v Speaker 4>if somebody loses seat, we need to be fair with

0:13:03.760 --> 0:13:06.760
<v Speaker 4>this person. But we think a couple of prices would

0:13:06.760 --> 0:13:08.160
<v Speaker 4>probably make a core and.

0:13:08.120 --> 0:13:10.880
<v Speaker 2>What are you focusing on the priorities for making that decision.

0:13:10.960 --> 0:13:13.080
<v Speaker 4>It's super simple, is the same then for every single

0:13:13.280 --> 0:13:15.400
<v Speaker 4>business it's performance of performance only.

0:13:15.400 --> 0:13:18.800
<v Speaker 2>Performance only. Harvey, in thinking about where the world goes

0:13:18.800 --> 0:13:21.400
<v Speaker 2>from here, I'd be remissified didn't bring up the chief

0:13:21.440 --> 0:13:24.960
<v Speaker 2>worry of the moment, and that is concern about credit conditions.

0:13:24.960 --> 0:13:27.360
<v Speaker 2>You've made it very clear that some of the issues,

0:13:27.440 --> 0:13:29.360
<v Speaker 2>be it first brands, be it some of the regional

0:13:29.360 --> 0:13:31.960
<v Speaker 2>banks more recently, if it is a cockroach, it's not

0:13:32.080 --> 0:13:34.440
<v Speaker 2>termites that are destroying the foundation of the building. They

0:13:34.520 --> 0:13:38.120
<v Speaker 2>might be a one off. At what point do you

0:13:38.320 --> 0:13:41.760
<v Speaker 2>start to get concerned that maybe it doesn't necessarily show

0:13:41.800 --> 0:13:43.880
<v Speaker 2>that the whole thing's going to crumble, but it's a

0:13:43.960 --> 0:13:46.839
<v Speaker 2>late cycle and there have been mistakes made that might

0:13:46.840 --> 0:13:47.920
<v Speaker 2>pop up more frequently.

0:13:48.200 --> 0:13:49.720
<v Speaker 1>Well, I think a lot of the questions that are

0:13:49.720 --> 0:13:52.240
<v Speaker 1>being asked make a lot of sense. You know, since

0:13:52.240 --> 0:13:55.720
<v Speaker 1>the financial crisis, we've had generally speaking, very stimulative policy

0:13:55.800 --> 0:14:00.439
<v Speaker 1>in all respects, quantitative easing, fiscal policy through the pandemic

0:14:00.480 --> 0:14:04.000
<v Speaker 1>and beyond, and so it's unsurprising when you look back,

0:14:04.240 --> 0:14:06.360
<v Speaker 1>of course, surprising when we came out of the financial crisis,

0:14:06.400 --> 0:14:09.160
<v Speaker 1>but unsurprising when you look back the trajectory of markets

0:14:09.160 --> 0:14:12.600
<v Speaker 1>that we've experienced. Anytime you're very late cycle like this,

0:14:13.600 --> 0:14:16.679
<v Speaker 1>any news item could be disruptive to a market on

0:14:16.679 --> 0:14:19.680
<v Speaker 1>any given day. I think that we haven't had really

0:14:19.720 --> 0:14:23.680
<v Speaker 1>a credit or session driven credit cycle in a very, very,

0:14:23.760 --> 0:14:25.720
<v Speaker 1>very long time, and so people are right to be

0:14:25.760 --> 0:14:29.800
<v Speaker 1>concerned when they see credit under performance. Having said that,

0:14:29.840 --> 0:14:32.720
<v Speaker 1>the bigger questions around systemic risk, or when you say

0:14:32.880 --> 0:14:35.520
<v Speaker 1>will things crumble, Just because we haven't had a credit

0:14:35.600 --> 0:14:37.080
<v Speaker 1>cycle in a long time doesn't mean if we go

0:14:37.120 --> 0:14:39.600
<v Speaker 1>through a credit cycle, which inevitably we will, that's a

0:14:39.640 --> 0:14:43.120
<v Speaker 1>certainty that things will crumble. I think the market structure

0:14:43.160 --> 0:14:45.640
<v Speaker 1>is such today that it's pretty resilient. And when we

0:14:45.680 --> 0:14:49.120
<v Speaker 1>look at our data across our portfolio companies, as we've

0:14:49.160 --> 0:14:52.320
<v Speaker 1>talked about any there are seven hundred thousand employees and

0:14:52.360 --> 0:14:55.120
<v Speaker 1>our portfolio companies around the world, they're twenty four hundred

0:14:55.120 --> 0:14:57.640
<v Speaker 1>at Carlisle driving all this activity. When we look at

0:14:57.640 --> 0:15:00.880
<v Speaker 1>that data today, that data suggests that companies are growing.

0:15:01.400 --> 0:15:04.240
<v Speaker 1>Employment is steady, inflation is a little sticky, but there's

0:15:04.280 --> 0:15:07.200
<v Speaker 1>nothing in the immediate horizon that suggests that as you

0:15:07.200 --> 0:15:10.480
<v Speaker 1>would say things are crumbling. Having said that late cycle,

0:15:12.040 --> 0:15:13.320
<v Speaker 1>it should be on a worry list.

0:15:13.920 --> 0:15:16.400
<v Speaker 2>It should Okay, makes sense as chief worry officer, what

0:15:17.520 --> 0:15:21.360
<v Speaker 2>specifically is the worry Then if it's not system.

0:15:21.280 --> 0:15:24.000
<v Speaker 1>We should get to a point where markets are let's say,

0:15:24.480 --> 0:15:29.000
<v Speaker 1>very stretched, credit spreads are very tight. It's about how

0:15:29.000 --> 0:15:32.400
<v Speaker 1>you deploy marginal capital from our perspective, and so when

0:15:32.400 --> 0:15:35.120
<v Speaker 1>we think about it again, we're not in the business

0:15:35.200 --> 0:15:38.120
<v Speaker 1>of avoiding risk. That's not the business we're in. We're

0:15:38.120 --> 0:15:40.200
<v Speaker 1>in the risk taking business. We have to be in

0:15:40.200 --> 0:15:42.680
<v Speaker 1>the business of pricing it correctly. So anytime your late

0:15:42.720 --> 0:15:45.760
<v Speaker 1>cycle you want to be very, very thoughtful about that

0:15:45.800 --> 0:15:49.360
<v Speaker 1>marginal risk deployment. Last year we deployed billions of capital,

0:15:50.160 --> 0:15:52.920
<v Speaker 1>sometimes in Europe, sometimes in the US, sometimes in Asia.

0:15:53.080 --> 0:15:55.080
<v Speaker 1>But you have to be looking around the world for

0:15:55.160 --> 0:15:56.960
<v Speaker 1>the capital with the right risk return. And that's what

0:15:57.000 --> 0:15:58.320
<v Speaker 1>we do on behalf of all of our clients.

0:15:58.400 --> 0:16:00.240
<v Speaker 2>Just to bring this back around, there have been some

0:16:00.280 --> 0:16:02.440
<v Speaker 2>concerns that with the amount of money coming in from

0:16:02.440 --> 0:16:05.000
<v Speaker 2>wealth that that gets harder to do just because there's

0:16:05.000 --> 0:16:07.600
<v Speaker 2>that much more money that needs to be deployed, and

0:16:07.640 --> 0:16:10.200
<v Speaker 2>maybe you go into things that you otherwise wouldn't have

0:16:10.360 --> 0:16:12.760
<v Speaker 2>because that money needs to be put to work. Is

0:16:12.800 --> 0:16:13.720
<v Speaker 2>that a fair concern?

0:16:15.360 --> 0:16:17.240
<v Speaker 1>Well, I think it's a it's a fair concern if

0:16:17.280 --> 0:16:20.920
<v Speaker 1>you're not thoughtful about deployment. In the history of cycles,

0:16:20.920 --> 0:16:22.640
<v Speaker 1>what you tend to see is you tend to see

0:16:22.920 --> 0:16:25.640
<v Speaker 1>too much capital coming into a space, chasing chasing too

0:16:25.720 --> 0:16:31.280
<v Speaker 1>little return. It's our responsibility to manage that capital thoughtfully,

0:16:31.760 --> 0:16:33.360
<v Speaker 1>and so that's our obligation.

0:16:33.440 --> 0:16:33.960
<v Speaker 3>That's how we think it.

0:16:34.040 --> 0:16:35.840
<v Speaker 2>Is there a concern that others aren't doing that as

0:16:35.920 --> 0:16:36.760
<v Speaker 2>this money's coming in.

0:16:36.880 --> 0:16:38.880
<v Speaker 1>I think any time you go through a long cycle,

0:16:39.160 --> 0:16:41.880
<v Speaker 1>you're going to see marginal participants who may not make

0:16:42.080 --> 0:16:45.720
<v Speaker 1>the best judgments. But again, your point is whether or not.

0:16:45.760 --> 0:16:47.520
<v Speaker 1>Really what you're getting is whether or not it's systemic

0:16:47.640 --> 0:16:49.160
<v Speaker 1>or not. I don't see that right now.

0:16:49.400 --> 0:16:52.000
<v Speaker 2>Well, just before we let both of you go the

0:16:52.040 --> 0:16:55.960
<v Speaker 2>first big splashy sponsorship, more more to come between you two,

0:16:56.080 --> 0:16:58.000
<v Speaker 2>between Carlisle and other sports.

0:16:59.000 --> 0:17:02.200
<v Speaker 1>Right now, we're pretty through with this partnership and we

0:17:02.320 --> 0:17:04.480
<v Speaker 1>just continue to root for our friend here on the

0:17:04.520 --> 0:17:05.439
<v Speaker 1>whole team in Max.

0:17:05.480 --> 0:17:07.680
<v Speaker 3>And so now we're quite satisfied.

0:17:07.800 --> 0:17:09.440
<v Speaker 4>And you know, on our side, we are very proud

0:17:09.480 --> 0:17:13.159
<v Speaker 4>that Carlile is the first ever global investment firms to

0:17:13.640 --> 0:17:15.720
<v Speaker 4>partners in Formula one, you know, is the first and

0:17:15.760 --> 0:17:18.880
<v Speaker 4>also for the sport to be connected with as part

0:17:18.920 --> 0:17:20.399
<v Speaker 4>of the business. And we are very poor that they

0:17:20.480 --> 0:17:21.840
<v Speaker 4>chose or curricle racing.

0:17:22.000 --> 0:17:22.879
<v Speaker 3>Yeah, we're thrilled with it.

0:17:23.080 --> 0:17:25.960
<v Speaker 2>We're all excited to watch watch the race today with

0:17:26.200 --> 0:17:29.720
<v Speaker 2>the Carlisles signed zipping by and good luck and congratulations

0:17:29.760 --> 0:17:30.720
<v Speaker 2>already for this weekend.

0:17:31.359 --> 0:17:32.320
<v Speaker 4>Thank you both so much.

0:17:32.600 --> 0:17:33.160
<v Speaker 3>Thanks Danny