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One of the things that we've been studying recently is Asurion, thanks to a project with Will Thorndyke covering that company. And it makes me wonder how often you've seen that, what I'll call extreme outlier venture type multiple of capital outcome from this space versus the more like lower variance, whatever the 33% a year for 10 years math is for MOIC.

How often are you seeing true outliers emerge from this style of investing in that bizarre category of Asurion, which you could put up against any venture investment of all time?

How often are you seeing true outliers emerge from this style of investing in that bizarre category of Asurion, which you could put up against any venture investment of all time?

One of my favorite lines of yours, Royce, I think it was you that said this to me, which is that the lower middle market is the only industry in the world where your best competition leaves every year. Yes, that's right. I did say that. Can you talk a little bit about that observation and dynamic?

One of my favorite lines of yours, Royce, I think it was you that said this to me, which is that the lower middle market is the only industry in the world where your best competition leaves every year. Yes, that's right. I did say that. Can you talk a little bit about that observation and dynamic?

Yeah, it's a fascinating dynamic at play, which I guess makes it sort of an evergreen opportunity set. Back to thinking about the companies, I'm curious what the things are that are the most common, subtle red flags that through pattern recognition

Yeah, it's a fascinating dynamic at play, which I guess makes it sort of an evergreen opportunity set. Back to thinking about the companies, I'm curious what the things are that are the most common, subtle red flags that through pattern recognition

And just seeing a million of these reps through your students and directly yourselves, you've built up over time of not the obvious, like terrible customer concentration or completely non-recurring, you know, the opposite of the things that you've said, but more just the little ones like, oh, watch out for this thing or this thing. Maybe we'll call them yellow flags, not red flags.

And just seeing a million of these reps through your students and directly yourselves, you've built up over time of not the obvious, like terrible customer concentration or completely non-recurring, you know, the opposite of the things that you've said, but more just the little ones like, oh, watch out for this thing or this thing. Maybe we'll call them yellow flags, not red flags.

What are some of the most interesting things in that category?

What are some of the most interesting things in that category?

It brings to mind the question of the same accumulated pattern recognition of what people do well that helps them close transactions, whether it's negotiating tactics or just communication style or methods or processes that they follow. Have you learned anything about just increasing the probability that once you have a deal that the transaction itself closes that you've observed in your students?

It brings to mind the question of the same accumulated pattern recognition of what people do well that helps them close transactions, whether it's negotiating tactics or just communication style or methods or processes that they follow. Have you learned anything about just increasing the probability that once you have a deal that the transaction itself closes that you've observed in your students?

Well, weekly communication helps a lot.

Well, weekly communication helps a lot.

One of the amazing things about this process is, you said it before, you don't really need growth or margin expansion to get your return. The magic's in the multiple, as you said. But when you have observed margin expansion or top-line growth... which of course is beautiful gravy given the purchase prices. What has been the most common reason that that becomes possible?

One of the amazing things about this process is, you said it before, you don't really need growth or margin expansion to get your return. The magic's in the multiple, as you said. But when you have observed margin expansion or top-line growth... which of course is beautiful gravy given the purchase prices. What has been the most common reason that that becomes possible?

Is it something common that the new CEOs and owners are doing? Is it the installation of better technology and process? Are there common trends to when you do see margin expansion or growth go a different direction?

Is it something common that the new CEOs and owners are doing? Is it the installation of better technology and process? Are there common trends to when you do see margin expansion or growth go a different direction?

I have an unrelated to the business question, but a question about improvement and growth, which is, I think you should both be proud that you've built this class now that has influenced, like when I was asking around ahead of our conversation today, it's pretty unbelievable the number of people whose trajectory and career you've now influenced. That must be a special feeling.