Future VC’s Post

"How many times can you be told that you are a loser? The answer is almost infinite, 😂" - Steve Schwarzman, Blackstone CEO. In an interview with Stanford Graduate School of Business, he shared his experience starting the Blackstone company and receiving about 450 of rejections. He shed light on how to take rejection on the positive spectrum rather than as an excuse to demotivate ourselves. You may watch the attached link to listen to the rest of the interview. In case you're not familiar, Blackstone is a private equity company based in the US. As of today, it is the biggest private equity firm globally with about US$1 trillion assets under management (based on Q4 2023 report which makes it the first private equity manager to surpass that milestone) 🤯. Like other private equity funds, Blackstone enters an investment partnership with a company where Blackstone would buy and manage it before selling it. Leveraged buyouts (LBO) is typically one of the strategies to do this where the private equity uses big amount of borrowed money as a leverage for the target company buyout. Private equity is often categorised as alternative investment which is opposite to conventional investment (e.g. bonds, stocks, cash) and commonly limited to accredited and qualified investors. Link to the interview: https://lnkd.in/g_SeZH39

My notes from studying Jon Gray, President & COO of Blackstone (~$1 Trillion AUM) turned into 1 sentence lessons: 1. Avoid financing long duration assets with short term debt 2. Make investment decisions based on large scale themes (i.e: e-commerce, life science, big data, etc.) 3. Your first job should have a culture of meritocracy and a culture of teaching 4. In real estate, be aware of many cranes and lots of leverage 5. If you want to be GREAT, only work on something you truly enjoy 6. Luck is a core competency - live a life that creates favorable results 7. Find where the tech and creative types are going, there are often tailwinds in those locations 8. Don't lose sight of what is temporary and what is permanent (I.e: travel during c*vid) 9. Avoid business that cannot pass inflationary pressure onto the customer 10. Life is unforgiving - find the right life partner

Introduction to Private Equity BEM Capital Network Educational Series Private Equity Explained Private equity is when investors put money into private companies or buy public companies to take them off the stock market. These investors, who are usually big institutions or wealthy individuals, use their money to help the companies grow and improve. The goal is to eventually make a lot of money by making the companies more valuable. Join Black Executive Men Capital Network to connect, collaborate, and advance your career in a community that values excellence. 🫱🏿🫲🏿 Apply here: https://lnkd.in/gGpmX_rz #BlackExecutiveMen #PrivateEquity

Private Equity Exit Strategies BEM Capital Network Educational Series Private Equity Explained In private equity, exiting an investment involves selling the portfolio company to realize returns, with three main strategies: Initial Public Offerings (IPOs), sales to strategic buyers, and sales to other private equity firms. IPOs offer high visibility and potential returns but require rigorous regulatory compliance and strong company performance. Sales to strategic buyers often command a premium due to synergistic benefits and can enhance the company’s growth prospects. Alternatively, selling to another private equity firm can be more efficient and may unlock additional value through further investment. The choice of exit strategy depends on market conditions and the company’s specific performance and growth potential. Join Black Executive Men Capital Network to connect, collaborate, and advance your career in a community that values excellence. 🫱🏿🫲🏿 Apply here: https://lnkd.in/gGpmX_rz #BlackExecutiveMen #PrivateEquity

Private Equity Exit Strategies BEM Capital Network Educational Series Private Equity Explained In private equity, exiting an investment involves selling the portfolio company to realize returns, with three main strategies: Initial Public Offerings (IPOs), sales to strategic buyers, and sales to other private equity firms. IPOs offer high visibility and potential returns but require rigorous regulatory compliance and strong company performance. Sales to strategic buyers often command a premium due to synergistic benefits and can enhance the company’s growth prospects. Alternatively, selling to another private equity firm can be more efficient and may unlock additional value through further investment. The choice of exit strategy depends on market conditions and the company’s specific performance and growth potential. Join Black Executive Men Capital Network to connect, collaborate, and advance your career in a community that values excellence. 🫱🏿🫲🏿 Apply here: https://lnkd.in/gGpmX_rz #BlackExecutiveMen #PrivateEquity

What VCs Look For vs. What You Should Look For In A VC Here’s the secret sauce: 1. **Strong Management Teams:** Your team should be capable and experienced. 2. **Clear Business Models:** Articulate a scalable model with a huge market opportunity. 3. **Realistic Valuations:** Keep expectations grounded in reality. 4. **Market Traction:** Demonstrate real demand with evidence. 5. **Deal Size & Sector:** Align your ask with their focus and expertise. When it's pitch time, have these ready: - Executive summary highlighting your customers and unique value - Solid financial projections - Comprehensive due diligence binder Choose VCs who offer more than just funding. Seek those who bring: - Management experience - Valuable contacts - Strategic exit plans PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

The Rising Challenges of Family Office Recruitment We were delighted to have recently been featured in Family Capital, in Michael Foster’s exploration of the increasing challenges facing family offices in their search for high quality talent. Looking across talent shortages, the rising expense of employees and the impact of process automation, Foster emphasises the importance of adopting a proactive approach to addressing these challenges. https://lnkd.in/dxXfB8xr #familyoffice #executivesearch #hiring #recruitment #humancapital #lutyensadvisory #talentacquisition #headhunting #HRconsulting #leadership #talentmanagement #businessstrategy

The best advice put simply and clearly …

Here's the advice the best VCs keep giving New and Emerging Managers:   🪃 Tell people what you are going to do, do the thing, and then tell them you've done it. This is the single best way to get people to trust you with their money or equity. Every interaction is an opportunity to show you are consistent, reliable and transparent. Prove to everyone and keep reminding them: you are the person who makes things happen. 🛼 Don't ask for money. Rather, give people an opportunity to be part of what you're building. When you embrace this mental shift, you show up differently; your enthusiasm becomes infectious, and suddenly people want in. Get used to hearing Nos while maintaining an attitude of "I'm doing this amazing thing, with or without you". 🥋 Become an expert at identifying people who waste your time and cut them out. Many will want to hang around you, take meetings, and invite you out, without ever helping your firm in any tangible way. Pick up on the slightest time-waster signals and move on.   And with that in mind, go out and show them what you're made of 🏂 ✨

The Rising Challenges of Family Office Recruitment We were delighted to have recently been featured in Family Capital, in Michael Foster’s exploration of the increasing challenges facing family offices in their search for high quality talent. Looking across talent shortages, the rising expense of employees and the impact of process automation, Foster emphasises the importance of adopting a proactive approach to addressing these challenges. https://lnkd.in/d9D3d6yN #familyoffice #executivesearch #hiring #recruitment #humancapital #lutyensadvisory #talentacquisition #headhunting #HRconsulting #leadership #talentmanagement #businessstrategy