WEBVTT - Brookfield Asset Management CEO Bruce Flatt Talks Succession, AI and Strategy

0:00:02.480 --> 0:00:07.000
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:07.880 --> 0:00:11.319
<v Speaker 2>One of the giants of deal making is Brookfield.

0:00:10.880 --> 0:00:13.800
<v Speaker 3>And it's CEO, Bruce Flatt, is an industry titan in

0:00:13.840 --> 0:00:16.759
<v Speaker 3>his very own right. This morning, the company announced that

0:00:16.840 --> 0:00:19.239
<v Speaker 3>Flat will be stepping down from his post leading the

0:00:19.280 --> 0:00:22.599
<v Speaker 3>company's one trillion dollar asset management business. He of course,

0:00:22.600 --> 0:00:24.760
<v Speaker 3>we'll stay on as the chair and as well as

0:00:24.800 --> 0:00:26.960
<v Speaker 3>CEO of the parent company. I'm pleased to say that

0:00:27.000 --> 0:00:29.120
<v Speaker 3>Bruce Flatt joins us now for the big picture, an

0:00:29.160 --> 0:00:32.680
<v Speaker 3>elevated look at the strategies and trends shaping corporate action. Bruce,

0:00:32.680 --> 0:00:34.640
<v Speaker 3>thank you so much for joining. We're so thrilled to

0:00:34.680 --> 0:00:35.960
<v Speaker 3>have you as our inaugural guest.

0:00:36.040 --> 0:00:38.240
<v Speaker 1>Bett, thank you for having me as your first customer.

0:00:38.360 --> 0:00:40.320
<v Speaker 3>I was going to say, there's no one else we'd

0:00:40.320 --> 0:00:41.879
<v Speaker 3>want to kick things off with, and what a way

0:00:41.920 --> 0:00:44.680
<v Speaker 3>to kick things off with this announcement that you're handing out,

0:00:44.720 --> 0:00:47.440
<v Speaker 3>least for the asset management business. The reins over to

0:00:47.560 --> 0:00:49.920
<v Speaker 3>Connor Tasky. I have to say, in a lot of

0:00:49.920 --> 0:00:54.080
<v Speaker 3>your industry, not only are there issues with succession plannings,

0:00:54.200 --> 0:00:56.240
<v Speaker 3>rarely do they lay out such a clear path.

0:00:56.520 --> 0:00:57.920
<v Speaker 2>Why do this and why now?

0:00:58.080 --> 0:01:02.200
<v Speaker 4>So Our business is about running great businesses. What we

0:01:02.240 --> 0:01:05.119
<v Speaker 4>do is we buy into companies, we help management teams,

0:01:05.160 --> 0:01:09.680
<v Speaker 4>we build them. And therefore we were very determined ourselves

0:01:09.800 --> 0:01:12.839
<v Speaker 4>about making sure we have the best succession, the best

0:01:12.920 --> 0:01:14.280
<v Speaker 4>run business on the planet.

0:01:14.480 --> 0:01:15.160
<v Speaker 1>So we've been.

0:01:15.040 --> 0:01:18.840
<v Speaker 4>At this for fifteen twenty years. We've been at with

0:01:18.880 --> 0:01:21.720
<v Speaker 4>Connor for the last four very methodically and all the

0:01:21.760 --> 0:01:24.960
<v Speaker 4>other team across the board, and it's just the natural time.

0:01:25.000 --> 0:01:28.280
<v Speaker 4>And it's really great to have young, new energy in

0:01:28.319 --> 0:01:30.679
<v Speaker 4>the business and I can be the chair and help

0:01:30.720 --> 0:01:32.720
<v Speaker 4>them out as the chairman of the parent.

0:01:32.760 --> 0:01:34.360
<v Speaker 3>CEO of the parent com You got to say, how

0:01:34.360 --> 0:01:37.160
<v Speaker 3>do you see your role evolving with this kind of the.

0:01:37.120 --> 0:01:38.240
<v Speaker 1>Same thing I do today.

0:01:38.720 --> 0:01:41.200
<v Speaker 4>I help with strategy, I help the team when they

0:01:41.240 --> 0:01:44.480
<v Speaker 4>need me to do something. I help with clients, and

0:01:45.640 --> 0:01:47.760
<v Speaker 4>that's what I've done for the last five ten years

0:01:47.760 --> 0:01:49.160
<v Speaker 4>and that's what I'll be doing in the future.

0:01:49.520 --> 0:01:52.400
<v Speaker 3>So does this mean the timeline speeds up for Connor

0:01:52.440 --> 0:01:55.640
<v Speaker 3>to take some other of your roles for Brookfield Corpse?

0:01:55.720 --> 0:01:58.480
<v Speaker 4>You know so far right now enough Brookfield has the

0:01:58.480 --> 0:02:01.840
<v Speaker 4>management's enough and we've got a big insurance business. We're

0:02:01.880 --> 0:02:04.200
<v Speaker 4>building a big investment business out in Brookfield Corps.

0:02:04.200 --> 0:02:05.240
<v Speaker 1>So we've got lots.

0:02:05.000 --> 0:02:07.800
<v Speaker 4>Going on up top, and frankly, giving up one job

0:02:08.040 --> 0:02:10.920
<v Speaker 4>is helpful to make sure that we can focus on

0:02:10.960 --> 0:02:11.400
<v Speaker 4>other things.

0:02:11.440 --> 0:02:14.640
<v Speaker 3>I'd love to get your philosophy on talent more broadly,

0:02:14.680 --> 0:02:16.359
<v Speaker 3>because clearly it's something that's near and dear to you

0:02:16.600 --> 0:02:19.440
<v Speaker 3>as a leader of this industry.

0:02:19.560 --> 0:02:19.840
<v Speaker 2>Leader.

0:02:20.120 --> 0:02:21.799
<v Speaker 3>There is this moment right now. We've heard from other

0:02:21.840 --> 0:02:24.480
<v Speaker 3>financial services companies like Gooman that growth is going to

0:02:24.480 --> 0:02:27.639
<v Speaker 3>be slowing and talent hiring because of things like AI.

0:02:27.960 --> 0:02:29.440
<v Speaker 2>Do you see the same thing ahead?

0:02:29.600 --> 0:02:29.800
<v Speaker 4>You know?

0:02:30.000 --> 0:02:30.360
<v Speaker 1>I don't know.

0:02:30.400 --> 0:02:35.600
<v Speaker 4>Maybe we're different because we're backbone real asset investors and

0:02:35.720 --> 0:02:38.240
<v Speaker 4>we've never had a better time. We keep raising more money,

0:02:38.240 --> 0:02:41.200
<v Speaker 4>we keep deploying it. We're any good returns. Things are great,

0:02:41.480 --> 0:02:45.840
<v Speaker 4>and the business is accelerating. So and even our credit

0:02:45.919 --> 0:02:49.079
<v Speaker 4>it's asset back finance credit. It's not what you see

0:02:49.080 --> 0:02:52.000
<v Speaker 4>in the news today. And therefore our business keeps growing.

0:02:52.000 --> 0:02:54.160
<v Speaker 4>We keep adding people, we keep adding countries, we keep

0:02:54.160 --> 0:02:54.919
<v Speaker 4>adding clients.

0:02:55.880 --> 0:02:59.160
<v Speaker 1>It's pretty good. But we're always focused.

0:02:58.720 --> 0:03:02.120
<v Speaker 4>Talent people, especially in a business like ours, but especially

0:03:02.200 --> 0:03:06.720
<v Speaker 4>in every business. People's everything, and it's really really important

0:03:06.720 --> 0:03:08.640
<v Speaker 4>to focus on it. It's the easiest thing to forget about,

0:03:09.880 --> 0:03:11.720
<v Speaker 4>and one should never forget about your people.

0:03:11.960 --> 0:03:15.280
<v Speaker 3>So at the same time you mentioned it, just the

0:03:15.280 --> 0:03:17.560
<v Speaker 3>real asset business that you have in this really big

0:03:17.600 --> 0:03:22.000
<v Speaker 3>bet on AI infrastructure that's been involving at Brookfield, everything

0:03:22.040 --> 0:03:24.680
<v Speaker 3>from mega deals with the hyperscalers to creating your own

0:03:24.720 --> 0:03:27.560
<v Speaker 3>cloud company. There's a lot of really interesting work you're doing.

0:03:27.760 --> 0:03:30.240
<v Speaker 3>If I could borrow a phrase and kind of bastardize

0:03:30.240 --> 0:03:32.320
<v Speaker 3>it from alphabet sound or PATRII what.

0:03:32.400 --> 0:03:35.320
<v Speaker 2>Is the risk right now? Is it under or overinvesting?

0:03:35.880 --> 0:03:38.680
<v Speaker 4>So if you're in the real asset space, in the

0:03:38.720 --> 0:03:44.360
<v Speaker 4>private markets, it's very difficult to entitle land, it's very

0:03:44.360 --> 0:03:47.000
<v Speaker 4>difficult to get power, it's very difficult to build because

0:03:47.000 --> 0:03:49.200
<v Speaker 4>you can't get you can't get people to build, and

0:03:49.240 --> 0:03:53.840
<v Speaker 4>therefore the investment is tough to do. And that's why

0:03:53.880 --> 0:03:58.080
<v Speaker 4>there's the returns in it are excellent because people need

0:03:58.120 --> 0:03:58.920
<v Speaker 4>skills to be able.

0:03:58.760 --> 0:03:59.120
<v Speaker 2>To do it.

0:03:59.560 --> 0:04:01.320
<v Speaker 1>Now, what most.

0:04:01.040 --> 0:04:03.680
<v Speaker 4>People focus on as the public markets, there's a few

0:04:03.720 --> 0:04:08.560
<v Speaker 4>securities which everyone wants to own and therefore multiples go higher.

0:04:10.080 --> 0:04:13.800
<v Speaker 4>But in the private markets it's very different and there

0:04:13.880 --> 0:04:16.920
<v Speaker 4>is an underinvestment in what's going on in private markets

0:04:17.400 --> 0:04:22.800
<v Speaker 4>because everyone's looking for additional AI cloud capacity and it's

0:04:23.040 --> 0:04:23.920
<v Speaker 4>very tough to build.

0:04:24.080 --> 0:04:28.080
<v Speaker 1>Easy sites have been built or committed. The hard sites.

0:04:28.160 --> 0:04:31.119
<v Speaker 4>Now the hard work starts, and in particular, we need power,

0:04:31.120 --> 0:04:33.120
<v Speaker 4>and as you know, we have a huge power business,

0:04:33.600 --> 0:04:37.520
<v Speaker 4>and that's the bottleneck in artificial intelligence for the next

0:04:37.560 --> 0:04:38.040
<v Speaker 4>ten years.

0:04:38.200 --> 0:04:39.520
<v Speaker 3>I definitely want to talk with that because you've been

0:04:39.520 --> 0:04:41.520
<v Speaker 3>doing some really interesting stuff there. But I do wonder

0:04:41.560 --> 0:04:44.159
<v Speaker 3>just on the public market side of things, Again, the

0:04:44.200 --> 0:04:47.560
<v Speaker 3>fear is less about the infrastructure. It's more these hyperscalers

0:04:47.600 --> 0:04:49.400
<v Speaker 3>are spending so much and maybe they don't have the

0:04:49.440 --> 0:04:51.000
<v Speaker 3>revenue to back it up, and maybe that.

0:04:50.960 --> 0:04:53.200
<v Speaker 2>Trickles down into infrastructure.

0:04:53.480 --> 0:04:55.200
<v Speaker 3>Do you see any red flags or do you think

0:04:55.240 --> 0:04:57.599
<v Speaker 3>public markets are misplaced when you see some of those.

0:04:57.480 --> 0:05:02.520
<v Speaker 4>Nerves firm first are when we build out infrastructure, we're

0:05:02.560 --> 0:05:07.799
<v Speaker 4>generally leasing them for twenty five, ten, twenty thirty years

0:05:08.760 --> 0:05:14.200
<v Speaker 4>to governments or large scale technology companies, and we just

0:05:14.240 --> 0:05:15.279
<v Speaker 4>have long term contracts.

0:05:15.360 --> 0:05:18.400
<v Speaker 1>This is just a leasing business. But we're building things

0:05:18.480 --> 0:05:19.000
<v Speaker 1>for them.

0:05:18.880 --> 0:05:20.920
<v Speaker 4>That are super critical and only we and a few

0:05:20.920 --> 0:05:24.200
<v Speaker 4>others can build them. So we're providing that backbone infrastructure

0:05:24.320 --> 0:05:27.720
<v Speaker 4>and they need more of this, and they need it

0:05:27.760 --> 0:05:30.880
<v Speaker 4>at scale, and they need it in the United States today,

0:05:30.960 --> 0:05:34.400
<v Speaker 4>but it's now going global in all countries in the

0:05:34.440 --> 0:05:36.600
<v Speaker 4>world for various reasons. We don't have time to get

0:05:36.600 --> 0:05:38.920
<v Speaker 4>into all of them here, but for various reasons, it's

0:05:39.000 --> 0:05:40.440
<v Speaker 4>accelerating all over the world.

0:05:40.520 --> 0:05:42.600
<v Speaker 3>So I say, just to answer that question, it sounds

0:05:42.640 --> 0:05:44.880
<v Speaker 3>like the risk is indeed underinvesting that maybe we're not

0:05:44.920 --> 0:05:45.520
<v Speaker 3>doing enough.

0:05:46.440 --> 0:05:52.440
<v Speaker 4>We are not doing enough in the private markets because

0:05:52.480 --> 0:05:55.480
<v Speaker 4>it's tough to do, and that's where we are, and

0:05:55.480 --> 0:05:58.160
<v Speaker 4>that's where we focus on because it's like, really, it's

0:05:58.200 --> 0:06:00.560
<v Speaker 4>not we could do way more with the amount of

0:06:00.560 --> 0:06:01.039
<v Speaker 4>money we have.

0:06:01.839 --> 0:06:03.920
<v Speaker 1>It's the technical capabilities to.

0:06:03.839 --> 0:06:09.280
<v Speaker 4>Bring on power, data centers, artificial intelligence, infrastructure, and everything

0:06:09.320 --> 0:06:10.000
<v Speaker 4>that's around it.

0:06:10.279 --> 0:06:11.680
<v Speaker 1>That's where the bottlenecks are.

0:06:11.800 --> 0:06:13.640
<v Speaker 3>Well, first of all, on the power side of things.

0:06:13.680 --> 0:06:15.200
<v Speaker 3>I know in twenty twenty three you did a deal

0:06:15.240 --> 0:06:18.480
<v Speaker 3>with Westinghouse, a nuclear energy company, which, by the way,

0:06:18.520 --> 0:06:21.479
<v Speaker 3>incredible foresight to see just the immense need that we

0:06:21.520 --> 0:06:23.800
<v Speaker 3>would need what it need for that. And then late

0:06:23.880 --> 0:06:25.840
<v Speaker 3>last year we also learned that the US government is

0:06:26.080 --> 0:06:29.840
<v Speaker 3>doing a partnership too. How has that partnership evolved how

0:06:29.880 --> 0:06:32.279
<v Speaker 3>much has the US government, for example, been involved so

0:06:32.360 --> 0:06:33.760
<v Speaker 3>far since that was announced.

0:06:33.880 --> 0:06:38.000
<v Speaker 4>So we had a discussion with the US government to

0:06:38.320 --> 0:06:41.440
<v Speaker 4>ensure that we could bring power on America. And we

0:06:41.440 --> 0:06:44.239
<v Speaker 4>couldn't do it ourselves. We can't build all nuclear plants

0:06:44.240 --> 0:06:46.120
<v Speaker 4>in the country. We're not big enough for that. We

0:06:46.120 --> 0:06:51.200
<v Speaker 4>needed their help, and the Department of Commerce and the

0:06:51.240 --> 0:06:54.560
<v Speaker 4>Presidents saw fit that they would help us, support us

0:06:54.640 --> 0:06:56.400
<v Speaker 4>to build out the industry. And we need to build

0:06:56.400 --> 0:06:59.039
<v Speaker 4>a whole supply chainnel because you can't just build one plant.

0:06:59.320 --> 0:07:02.200
<v Speaker 4>We're going to build now eight ten plants for them,

0:07:02.560 --> 0:07:05.120
<v Speaker 4>and we're going to build eight ten more plans for others.

0:07:05.440 --> 0:07:08.160
<v Speaker 4>And it's going to build a whole supply chain out

0:07:08.200 --> 0:07:12.560
<v Speaker 4>in America for nuclear And this is very very important

0:07:12.640 --> 0:07:16.920
<v Speaker 4>because it's bringing on power, it's bringing baseload power, it's

0:07:16.920 --> 0:07:21.040
<v Speaker 4>bringing on power that's much needed in America. And we're

0:07:21.080 --> 0:07:23.760
<v Speaker 4>going to double the grid in the next twenty years.

0:07:24.720 --> 0:07:27.520
<v Speaker 4>And this is super critical because it's baseload capacity and

0:07:27.560 --> 0:07:29.360
<v Speaker 4>it's very very important to the United States.

0:07:29.760 --> 0:07:31.960
<v Speaker 3>A lot of your infrastructure is really important to the

0:07:32.040 --> 0:07:34.200
<v Speaker 3>United States. Have you had talks with the US government

0:07:34.240 --> 0:07:36.120
<v Speaker 3>and other aspects about striking more partnerships.

0:07:36.200 --> 0:07:40.000
<v Speaker 4>Jo. Look, I would say they're very commercial in they're

0:07:40.080 --> 0:07:44.120
<v Speaker 4>what they do where it makes sense and where business

0:07:44.320 --> 0:07:47.160
<v Speaker 4>entrepreneurs can put money to work. They're very supportive and

0:07:48.160 --> 0:07:50.400
<v Speaker 4>they were very good with us, and we're going to

0:07:50.400 --> 0:07:52.840
<v Speaker 4>build out. We're going to recreate an industry and create

0:07:53.040 --> 0:07:56.280
<v Speaker 4>enormous number of jobs in America because of what they did.

0:07:56.600 --> 0:07:59.720
<v Speaker 3>Have you felt any more friction because of your Canadian

0:07:59.800 --> 0:08:02.640
<v Speaker 3>rooms or your cross border.

0:08:02.400 --> 0:08:03.200
<v Speaker 2>Type of business.

0:08:03.240 --> 0:08:04.680
<v Speaker 3>There had been this fear and we saw it very

0:08:04.720 --> 0:08:08.640
<v Speaker 3>President Davos that it's a more insular United States and

0:08:08.680 --> 0:08:10.800
<v Speaker 3>maybe foreign powers and Mark Carney speech R I know,

0:08:10.880 --> 0:08:12.320
<v Speaker 3>you know very well talked about the need of the

0:08:12.360 --> 0:08:13.880
<v Speaker 3>middling nations to come together.

0:08:13.920 --> 0:08:15.000
<v Speaker 2>Do you feel that flow through.

0:08:15.120 --> 0:08:15.320
<v Speaker 1>Yes.

0:08:15.760 --> 0:08:18.440
<v Speaker 4>So sixty percent of ourssets are in the United States.

0:08:18.440 --> 0:08:22.280
<v Speaker 4>We're headquartered in the US. We have a huge business here.

0:08:22.320 --> 0:08:25.560
<v Speaker 4>This is super super United States, super super critical to US.

0:08:25.480 --> 0:08:26.480
<v Speaker 1>As is every country.

0:08:26.600 --> 0:08:30.040
<v Speaker 4>Remember what we do is we build local infrastructure in

0:08:30.160 --> 0:08:34.680
<v Speaker 4>countries and we sell goods and services to individuals or companies.

0:08:34.760 --> 0:08:35.160
<v Speaker 1>That's it.

0:08:35.720 --> 0:08:37.959
<v Speaker 4>We don't move over the borders. We just build out

0:08:38.000 --> 0:08:41.199
<v Speaker 4>and sell in the country. So we pick countries very wisely.

0:08:41.960 --> 0:08:44.920
<v Speaker 4>We go to them and we build out in those countries.

0:08:45.200 --> 0:08:48.719
<v Speaker 4>So we're friends with every country in the world, and

0:08:49.400 --> 0:08:52.400
<v Speaker 4>we try to be great citizens. We try to do

0:08:52.559 --> 0:08:54.440
<v Speaker 4>well for the country. We always try to be on

0:08:54.520 --> 0:08:57.200
<v Speaker 4>the side of doing the right thing for the country,

0:08:57.800 --> 0:09:02.280
<v Speaker 4>never get cross thread with any and build out infrastructure

0:09:02.280 --> 0:09:04.800
<v Speaker 4>in the country. And what we're doing is, as you noted,

0:09:04.960 --> 0:09:08.760
<v Speaker 4>super important for the backbone of the global economy.

0:09:08.800 --> 0:09:09.360
<v Speaker 1>That's all we do.

0:09:09.840 --> 0:09:12.920
<v Speaker 4>We either lend to or we put equity into the

0:09:12.960 --> 0:09:15.480
<v Speaker 4>backbone of the global economy, and that's what these countries need,

0:09:15.800 --> 0:09:16.760
<v Speaker 4>including the United States.

0:09:16.800 --> 0:09:19.120
<v Speaker 3>I heard from someone that this administration, someone said this

0:09:19.160 --> 0:09:20.920
<v Speaker 3>recently to me, is just like much more willing to

0:09:20.920 --> 0:09:21.480
<v Speaker 3>pick up the phone.

0:09:21.480 --> 0:09:22.600
<v Speaker 2>It's much more willing to listen.

0:09:22.720 --> 0:09:25.200
<v Speaker 3>Is it just much easier to get things done in

0:09:25.240 --> 0:09:26.080
<v Speaker 3>this country right now?

0:09:26.200 --> 0:09:27.079
<v Speaker 1>Yes? Yes.

0:09:27.679 --> 0:09:30.760
<v Speaker 4>Department of Commerce, like our transaction was done with Department

0:09:30.800 --> 0:09:33.680
<v Speaker 4>of Energy and specifically Department of Commerce Howard Lutnik, and

0:09:33.800 --> 0:09:39.600
<v Speaker 4>they were very they were very transactional and did they

0:09:39.640 --> 0:09:42.400
<v Speaker 4>focused on the right things and we got a transaction done.

0:09:43.160 --> 0:09:45.600
<v Speaker 3>Late last year, you announced that you were going to

0:09:45.600 --> 0:09:47.880
<v Speaker 3>be buying the rest of oak Trea, a company that

0:09:47.920 --> 0:09:50.160
<v Speaker 3>you had also long had a partnership with beginning in

0:09:50.160 --> 0:09:54.240
<v Speaker 3>twenty nineteen. How is that combination going to evolve as

0:09:54.280 --> 0:09:57.080
<v Speaker 3>you work through it. Does the oak Tree brand get

0:09:57.080 --> 0:09:59.800
<v Speaker 3>blended into Brookfield, does it remain its own entity?

0:10:00.120 --> 0:10:01.079
<v Speaker 2>How are you thinking about this?

0:10:01.160 --> 0:10:04.760
<v Speaker 4>So we have two I'm going to say this as

0:10:05.640 --> 0:10:08.400
<v Speaker 4>we have two amazing brands. But Feels an incredible brand,

0:10:08.400 --> 0:10:10.280
<v Speaker 4>but oak Tree is an amazing brand as well, and

0:10:10.320 --> 0:10:13.440
<v Speaker 4>we plan on keeping both behind the scenes. Some of

0:10:13.440 --> 0:10:17.280
<v Speaker 4>the things that we do will be we'll join them together,

0:10:17.360 --> 0:10:19.760
<v Speaker 4>and we'll do things to get cost synergies and benefits

0:10:19.760 --> 0:10:21.920
<v Speaker 4>and all those kind of things. But the two brands

0:10:22.000 --> 0:10:26.280
<v Speaker 4>are unbelievably valuable in our opinion, and they're going to stay.

0:10:26.320 --> 0:10:30.520
<v Speaker 4>And you know, for opportunistic credit investing, which today is

0:10:30.800 --> 0:10:32.679
<v Speaker 4>super important or more important.

0:10:32.400 --> 0:10:33.880
<v Speaker 1>This week than it was last week.

0:10:34.559 --> 0:10:38.120
<v Speaker 4>The oak Tree brand is an incredible franchise and we're

0:10:38.160 --> 0:10:40.240
<v Speaker 4>going to keep that and it's really important to us.

0:10:40.400 --> 0:10:41.920
<v Speaker 3>Just on that note, because you mentioned this at the

0:10:41.920 --> 0:10:43.599
<v Speaker 3>start of the conversation that there does seem to be

0:10:43.600 --> 0:10:45.360
<v Speaker 3>a little bit of nervness around credit markets.

0:10:45.400 --> 0:10:47.600
<v Speaker 2>I know in your twenty twenty six outlook and the.

0:10:47.520 --> 0:10:50.400
<v Speaker 3>Team had written credit markets are rewarding those with underwriting

0:10:50.440 --> 0:10:54.000
<v Speaker 3>standards focused on asset quality. Say that kind of implies

0:10:54.360 --> 0:10:57.480
<v Speaker 3>that maybe there are others who aren't focused on quality.

0:10:57.520 --> 0:10:58.480
<v Speaker 2>Is there a real divergence.

0:10:58.600 --> 0:10:59.240
<v Speaker 1>Yeah.

0:10:59.280 --> 0:11:03.239
<v Speaker 4>I don't comment on any other person, any other group's business,

0:11:03.400 --> 0:11:07.199
<v Speaker 4>But what I would say is our business focused on

0:11:07.440 --> 0:11:12.840
<v Speaker 4>asset back finance, opportunistic credit, and lending to things we understand,

0:11:12.920 --> 0:11:15.679
<v Speaker 4>lending to the real economy, and therefore we have very

0:11:15.679 --> 0:11:18.320
<v Speaker 4>little exposure to the types of things that are going

0:11:18.360 --> 0:11:22.559
<v Speaker 4>on today. And that may be fortuitous, I'd say, in

0:11:22.600 --> 0:11:26.200
<v Speaker 4>our opportunistic business, it creates a big opportunity because then

0:11:26.200 --> 0:11:29.440
<v Speaker 4>when things sell off, often they go way too far,

0:11:30.360 --> 0:11:32.520
<v Speaker 4>and therefore opportunity comes about.

0:11:32.600 --> 0:11:34.360
<v Speaker 2>So are you calling up your team saying, hey, look

0:11:34.360 --> 0:11:35.920
<v Speaker 2>at what happened this week. There might be something.

0:11:36.160 --> 0:11:38.200
<v Speaker 1>Yes, Yes, we're very focused.

0:11:38.240 --> 0:11:40.400
<v Speaker 3>I was gonna say, because you're not that exposed to software,

0:11:40.440 --> 0:11:43.000
<v Speaker 3>would this be an opportunity maybe to get in there

0:11:43.040 --> 0:11:43.680
<v Speaker 3>a little bit more.

0:11:44.240 --> 0:11:48.840
<v Speaker 4>It's we're very under exposed to software. We're a real

0:11:48.880 --> 0:11:53.079
<v Speaker 4>asset business. But in our in our our private equity,

0:11:53.480 --> 0:11:58.559
<v Speaker 4>our opportunistic strategies for credit. Look at industries when they

0:11:58.600 --> 0:12:01.160
<v Speaker 4>sell off and when there is value to be had,

0:12:01.520 --> 0:12:06.160
<v Speaker 4>and I suspect somewhere in this cycle of software there's

0:12:06.200 --> 0:12:08.440
<v Speaker 4>going to be some amazing value to be made.

0:12:08.520 --> 0:12:10.480
<v Speaker 3>There feels to be like a lot of reckonings happening

0:12:10.520 --> 0:12:13.000
<v Speaker 3>in this market. You've outlined a lot of changes, be

0:12:13.040 --> 0:12:17.199
<v Speaker 3>it deglobalization otherwise some of what you're doing in infrastructure.

0:12:17.640 --> 0:12:20.200
<v Speaker 2>Is this a moment of a market reset? Look?

0:12:20.240 --> 0:12:23.280
<v Speaker 4>I think the world twenty The thing I start off

0:12:23.320 --> 0:12:26.000
<v Speaker 4>by saying is everyone gets excited about day to day

0:12:26.080 --> 0:12:28.400
<v Speaker 4>changes in the markets. They listen to your show and

0:12:28.440 --> 0:12:32.280
<v Speaker 4>then go or go and buy or sell. But twenty

0:12:32.360 --> 0:12:34.920
<v Speaker 4>years from now, we will look back and the valuations

0:12:34.960 --> 0:12:40.480
<v Speaker 4>will be ridiculously low for great companies and businesses. And

0:12:41.080 --> 0:12:44.200
<v Speaker 4>that's what people should really be focused on, focused on

0:12:44.240 --> 0:12:46.880
<v Speaker 4>the long term, focus on buying great companies and businesses,

0:12:46.920 --> 0:12:51.600
<v Speaker 4>stick with them, don't sell, and just stay the course.

0:12:51.640 --> 0:12:54.440
<v Speaker 4>And that's like that. That's been our story for a long,

0:12:54.480 --> 0:12:56.000
<v Speaker 4>long period of time, and that's what it's going to

0:12:56.240 --> 0:12:57.200
<v Speaker 4>going to continue to be