Patrick O'Shaughnessy

Andrew is the founder of MarbleGate Asset Management, an alternative investment firm that invests in credit opportunities and special situations.

He joins me to discuss his unique approach to distressed investing in the middle market, revealing how middle market EBITDA has declined 20% to 25% since 2019, creating what he calls the K-shaped economy.

His investment stories are legendary, particularly his $600 million bet on New York City taxi medallions, which we go into in great detail.

We discuss MarbleGate's approach to negotiation, sourcing deals directly from hundreds of regional banks, and understanding the human element in distress situations.

Please enjoy this great conversation with Andrew Milgram.

Andrew, I think you and I have talked about doing this for five years.

On and off, I think that's right.

You don't do this a lot or ever.

I love the category of guests that are the first and only interviews of this type.

And so I'm so excited to do it with you.

And I'm especially excited because your style is so distinctive.

And we'll talk about a million things related to how you invest and your personal story and getting here.

But I thought a framing exercise that would be great starting place would be for you to describe this notion that you have of the K-shaped economy.

You do something that's very specific, and we're going to talk about all aspects, but I want to start broad.

So tell us what the K-shaped economy is from your perspective.

What I want you to focus on is, so if you think about the K-shape, we all know the upper part.

It's the S&P 8 or as people are calling it now, FANG stocks or whatever, AI companies.

We know the story that's going well.

So maybe talk about this investigation that you've done recently about what's going less well and why and what you learned.

So there's a third of the economy that has this aggregate problem.