Rick Ruback

It's a little bit like if you bought a business and went through the J curve of the initial investment and you sold right after that. Here, you finally become a really expert CEO in this business. You've got the business pointed in the direction you want. It's really doing well. Why would you deny yourself the next half decade of that? I think it's a capital allocation issue.

It's a little bit like if you bought a business and went through the J curve of the initial investment and you sold right after that. Here, you finally become a really expert CEO in this business. You've got the business pointed in the direction you want. It's really doing well. Why would you deny yourself the next half decade of that? I think it's a capital allocation issue.

I co-founded it with someone named Andrew Banks, who had been my partner previously at Bain & Company. And when we started it, it had a strong sector focus, which was different to new in the late 80s and early 90s. Today, it's table stakes in the private equity business, but it was a powerful driver of every partner's success. And he and I ran the firm for a quarter century. We did it for 25 years.

I co-founded it with someone named Andrew Banks, who had been my partner previously at Bain & Company. And when we started it, it had a strong sector focus, which was different to new in the late 80s and early 90s. Today, it's table stakes in the private equity business, but it was a powerful driver of every partner's success. And he and I ran the firm for a quarter century. We did it for 25 years.

It was a wonderful experience. Metaphorically, I ran to work every day because I enjoyed myself. What I'm about to say is true about Andrew as well. We started to try and envision how we would reflect on our lives at the age of, say, 75 or 80 looking back.

It was a wonderful experience. Metaphorically, I ran to work every day because I enjoyed myself. What I'm about to say is true about Andrew as well. We started to try and envision how we would reflect on our lives at the age of, say, 75 or 80 looking back.

And if we spent the incremental 15 years, so not a quarter century, but 40 years running a private equity firm, would we think that that was a really sensible allocation of our professional life? And the answer was no. No, it really wouldn't because 25 years was a great experience, but there are other things in life that are different and interesting.

And if we spent the incremental 15 years, so not a quarter century, but 40 years running a private equity firm, would we think that that was a really sensible allocation of our professional life? And the answer was no. No, it really wouldn't because 25 years was a great experience, but there are other things in life that are different and interesting.

That really motivated us to want to do something different. By the way, it helped the firm was doing well. We had a talented group of partners in the next generation who could step up and this would be good for the investors and for them. That was important. But that was really what was driving our thinking. And I will add two things. One is that there was a catalytic event for me.

That really motivated us to want to do something different. By the way, it helped the firm was doing well. We had a talented group of partners in the next generation who could step up and this would be good for the investors and for them. That was important. But that was really what was driving our thinking. And I will add two things. One is that there was a catalytic event for me.

I was working late one evening in my office, and my dear friend and longtime partner, Andrew Banks, came in. And I always think of this a little bit like in Charles Dickens' The Christmas Carol, when Jacob Marley comes in and wakes up Scrooge and tells him what the future will be like if he doesn't listen to his partner, Jacob Marley. And Andrew said, Royce, when we started this thing, we had

I was working late one evening in my office, and my dear friend and longtime partner, Andrew Banks, came in. And I always think of this a little bit like in Charles Dickens' The Christmas Carol, when Jacob Marley comes in and wakes up Scrooge and tells him what the future will be like if he doesn't listen to his partner, Jacob Marley. And Andrew said, Royce, when we started this thing, we had

more time than money, and now we have more money than time, and we ought to act accordingly. And I thought to myself, that is really good advice. I'm not going to admit it to Andrew. It'll just ruin him. I guess I just admitted it. Hopefully he doesn't listen. But those were the reasons for leaving. And when I left, it was very disorienting because I was leaving something I was very good at.

more time than money, and now we have more money than time, and we ought to act accordingly. And I thought to myself, that is really good advice. I'm not going to admit it to Andrew. It'll just ruin him. I guess I just admitted it. Hopefully he doesn't listen. But those were the reasons for leaving. And when I left, it was very disorienting because I was leaving something I was very good at.

What could I do to replace that? I had the immense good fortune of partnering with Rick Ruback and building this in a partnership with him. And boy, I'm so glad I did it.

What could I do to replace that? I had the immense good fortune of partnering with Rick Ruback and building this in a partnership with him. And boy, I'm so glad I did it.

I so agree with what Rick said on this. I think at great institutions, there's a tension between research and practical teaching. Schools have to find a balance because different constituencies want different things out of those institutions. Faculty, alumni, the general public want the benefits of the research and new ideas that come out of them.

I so agree with what Rick said on this. I think at great institutions, there's a tension between research and practical teaching. Schools have to find a balance because different constituencies want different things out of those institutions. Faculty, alumni, the general public want the benefits of the research and new ideas that come out of them.

Often the students want a very practical education. And... You're operating one enterprise that's trying to produce both of these, and finding the right balance between those two is like an eternal challenge for a fine school.

Often the students want a very practical education. And... You're operating one enterprise that's trying to produce both of these, and finding the right balance between those two is like an eternal challenge for a fine school.