Stephanie Flanders

We're not trying to do venture capital.

We're trying to do growth equity investing.

And that means the ways in which we have to influence companies need to be designed to the growth stage.

So, for instance, we will often play a role in helping our companies shape governance frameworks, transitioning to independent-led boards as they think about becoming public.

the public markets is where we've been for 100 years, and we bring that expertise in helping our portfolio companies get ready for being a public business.

But that's not something that we try to do six months before a company becomes public.

We try to do that in the years leading up to being a public business.

So when you're looking at an Anthropic, for example, and there are actually more companies, analysts at banks now analyzing private companies because they're so huge.

And one of the analysis really coming from J.B.

Morgan, for example, is that the premium pricing that Anthropic has might start to be hit by the level of competition in the enterprise.

Is that something you steer a company on or something that you agree with?

Look, I think that when we're investing in a company like Anthropic, fundamentally what we're trying to do is determine not just how large the revenue base can be.

We're trying to determine how much of that can flow down to profit and how large that profit can be relative to return on equity.

So, of course, we're trying to understand pricing power dynamics.

We're trying to understand margin structures.

And we're trying to understand capital intensity and the returns that can be earned on capital.

Clearly, the AI markets are pretty hot at the moment.

Yeah.

We think whenever you have a market, there will be a tiny number of exceptional companies.

And so we own Anthropic, we own Databricks, but we're not an AI fund.