Graham Weaver

If we underwrote an individual deal to 5X, we would never close a deal. So that's kind of how we think about it.

If we underwrote an individual deal to 5X, we would never close a deal. So that's kind of how we think about it.

If you look back at the, now that you have all this data and all these funds, is it true in most of the funds that it's 1%? platform or deal that dominates the returns?

If you look back at the, now that you have all this data and all these funds, is it true in most of the funds that it's 1%? platform or deal that dominates the returns?

Yeah, there's definitely an asymmetry for sure. One of my favorite things, I remember I used to read every word that Buffett ever wrote in his annual reports, and I'm going to get this a little bit wrong, but it'll be directionally correct. I want to say in like 1988 or something, he'd made half of all of his money on two stocks, Geico and the Washington Post.

Yeah, there's definitely an asymmetry for sure. One of my favorite things, I remember I used to read every word that Buffett ever wrote in his annual reports, and I'm going to get this a little bit wrong, but it'll be directionally correct. I want to say in like 1988 or something, he'd made half of all of his money on two stocks, Geico and the Washington Post.

He had tons of businesses he bought and sold and everything, but 50% of it, yeah, there's like asymmetry. And Yeah, we tend to have at least one real outlier deal per fund. As we're learning, we're figuring out the ingredients of that outlier better and better and better so that we're hoping that each seed that we're planting at least has the potential to be that outlier.

He had tons of businesses he bought and sold and everything, but 50% of it, yeah, there's like asymmetry. And Yeah, we tend to have at least one real outlier deal per fund. As we're learning, we're figuring out the ingredients of that outlier better and better and better so that we're hoping that each seed that we're planting at least has the potential to be that outlier.

We want every shot on goal to at least have that upside. They won't all hit that, but we're getting better at identifying the ingredients of that outlier, which is, hey, build a real company, build a real hold co with a phenomenal team in a large industry, really spend the time to get the playbook right and give yourself some breathing room.

We want every shot on goal to at least have that upside. They won't all hit that, but we're getting better at identifying the ingredients of that outlier, which is, hey, build a real company, build a real hold co with a phenomenal team in a large industry, really spend the time to get the playbook right and give yourself some breathing room.

And if we're doing that again and again and again, we're now starting to have a lot more consistent businesses that are these outliers. In our more recent funds, it's not one company. In fact, in our most recent fund, I'm biased, but I think just about every company has that potential as of now to be a real outlier.

And if we're doing that again and again and again, we're now starting to have a lot more consistent businesses that are these outliers. In our more recent funds, it's not one company. In fact, in our most recent fund, I'm biased, but I think just about every company has that potential as of now to be a real outlier.

Let's go back to the talent. It almost sounds like what you've built is like a captive search fund business. Yeah, that's right. No, that's a good analogy. It's all the same stuff. Really good analogy. Personal attributes, time of their life. Yeah. So one question I have is on incentives. How do you incentivize? Like in a search fund, it's really tight and clean. Like you're buying a business.

Let's go back to the talent. It almost sounds like what you've built is like a captive search fund business. Yeah, that's right. No, that's a good analogy. It's all the same stuff. Really good analogy. Personal attributes, time of their life. Yeah. So one question I have is on incentives. How do you incentivize? Like in a search fund, it's really tight and clean. Like you're buying a business.

If it does phenomenally well, you as the searcher CEO are going to do phenomenally well. What have you learned about incentivizing the people that get installed to run these businesses?

If it does phenomenally well, you as the searcher CEO are going to do phenomenally well. What have you learned about incentivizing the people that get installed to run these businesses?

You know, using your search fund analogy, let's say that you're the kind of person that wants the ball early. That's the search fund person. They want to be CEO early. I love that. I was 25. I wanted the ball. I appreciate that characteristic. So they want the ball early. And if you think about what they want the ball to do, it's to go run a business. That's what they want.

You know, using your search fund analogy, let's say that you're the kind of person that wants the ball early. That's the search fund person. They want to be CEO early. I love that. I was 25. I wanted the ball. I appreciate that characteristic. So they want the ball early. And if you think about what they want the ball to do, it's to go run a business. That's what they want.

In the search fund world, they first have to go build a private equity firm to find and close. And if you actually look at the data, I used to invest in search. I don't know, I've invested in 70 search funds or more. They usually mess up that first part. investing is a pattern recognition business. Bankers don't want to sell to them because they're only going to ever do one deal with that banker.

In the search fund world, they first have to go build a private equity firm to find and close. And if you actually look at the data, I used to invest in search. I don't know, I've invested in 70 search funds or more. They usually mess up that first part. investing is a pattern recognition business. Bankers don't want to sell to them because they're only going to ever do one deal with that banker.