Stuart Miller

Well, I think it's part of the pricing, right? You think of somebody like Musk, the terms of Musk's X.AI fundraise, I presume, are egregious, quote unquote, from an investor's perspective. They have no control. They have no transparency, whatever, right? So that's the market pricing, the fact that he's highly credible.

Well, I think it's part of the pricing, right? You think of somebody like Musk, the terms of Musk's X.AI fundraise, I presume, are egregious, quote unquote, from an investor's perspective. They have no control. They have no transparency, whatever, right? So that's the market pricing, the fact that he's highly credible.

Part of pricing the talent, what you're pricing is the degree of autonomy, transparency, and and the fees and the duration of the capital, all those things are like, okay, what feels reasonable given where this person is in life, what their track record is, your assessment of their competence and all of that.

Part of pricing the talent, what you're pricing is the degree of autonomy, transparency, and and the fees and the duration of the capital, all those things are like, okay, what feels reasonable given where this person is in life, what their track record is, your assessment of their competence and all of that.

The way I ended up doing is if I were them at this stage with this track record, with this set of relationships, Would I feel like this is a fair deal or do I feel exploited? And if I would feel exploited, I'd try to dial it back a little bit so that it doesn't feel exploitative. And sometimes I would get it wrong, of course, but I feel like that part of pricing. Pricing talent. Pricing talent.

The way I ended up doing is if I were them at this stage with this track record, with this set of relationships, Would I feel like this is a fair deal or do I feel exploited? And if I would feel exploited, I'd try to dial it back a little bit so that it doesn't feel exploitative. And sometimes I would get it wrong, of course, but I feel like that part of pricing. Pricing talent. Pricing talent.

It's like how much money and with what constraints on the activity. Like what are your decision rights there? And how often are you going to check back in? And then I think there's a way to do it if you're the, I guess in this sense, the principal, there's a way to do it where you're Even though you formally have these rights, you're doing it with a very light touch.

It's like how much money and with what constraints on the activity. Like what are your decision rights there? And how often are you going to check back in? And then I think there's a way to do it if you're the, I guess in this sense, the principal, there's a way to do it where you're Even though you formally have these rights, you're doing it with a very light touch.

You can make the experience feel like a much more open field, depending on the tone of the people who you've struck the deal with.

You can make the experience feel like a much more open field, depending on the tone of the people who you've struck the deal with.

Back to that part about identity. If you're the principal, you need an agent who can make money through other people and not care, be kind of indifferent about whether it's, quote, yours or somebody else's. It's just net of fees. How much money did you make?

Back to that part about identity. If you're the principal, you need an agent who can make money through other people and not care, be kind of indifferent about whether it's, quote, yours or somebody else's. It's just net of fees. How much money did you make?

And I feel like I observed that a lot of people who allocate money to underlying GPs, they actually would prefer to be the underlying GP from a power and identity and experience perspective. You, the principal, should just want to make money. It's not all the identity claims about who did what or whatever. So many people actually are not good at making money through other people.

And I feel like I observed that a lot of people who allocate money to underlying GPs, they actually would prefer to be the underlying GP from a power and identity and experience perspective. You, the principal, should just want to make money. It's not all the identity claims about who did what or whatever. So many people actually are not good at making money through other people.

They can do the analysis themselves, but they actually can't. It's like the stage of a portfolio manager's development where if they've been a stock picker and then they move to being a portfolio manager and they need to own a stock that actually is their analyst's favorite idea and they aren't as deep on it as the analyst's. That's a really big moment of transition.

They can do the analysis themselves, but they actually can't. It's like the stage of a portfolio manager's development where if they've been a stock picker and then they move to being a portfolio manager and they need to own a stock that actually is their analyst's favorite idea and they aren't as deep on it as the analyst's. That's a really big moment of transition.

And a lot of people cannot make that transition. It's the equivalent transition, I feel like, in the family office CIO, where I think the ideal is just agnosticism on enough self-awareness to know where you have comparative advantage, but also an ability to interview other people and appreciate them for who they are and what they're doing without any need to make it your own somehow.

And a lot of people cannot make that transition. It's the equivalent transition, I feel like, in the family office CIO, where I think the ideal is just agnosticism on enough self-awareness to know where you have comparative advantage, but also an ability to interview other people and appreciate them for who they are and what they're doing without any need to make it your own somehow.

You need somebody who knows what it's like to lose money and cares in their bones about never selling puts or never doing something that could take you out of the game. Because people do weird shit. And so part of the trust is... A conservatism of like, yeah, I'll let some things go. You want the agent to view the money as though it's theirs.

You need somebody who knows what it's like to lose money and cares in their bones about never selling puts or never doing something that could take you out of the game. Because people do weird shit. And so part of the trust is... A conservatism of like, yeah, I'll let some things go. You want the agent to view the money as though it's theirs.