The Pitch Podcast - SoundSage

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Episode 25: Show Notes.Today we are excited to be joined by Shifra Asonoff, the Global Head of Research at Preqin. Preqin is a provider of data, analytics and insights into the alternative asset community. Shifra illuminates the sometimes opaque nature of alternatives and walks us through some of the key trends in private markets today, including how today’s volatile market environment is affecting the alternative investment management business, key trends in fundraising and deal-flow, and performance metrics by asset class and strategy.

: A key insight of this presentation is that the difference in performance amongst the very best and average manager is wide - in some cases as wide as 20%. Shifra notes that a key characteristic shared by the highest performing managers is their ability to leverage unique relationships to originate deal flow in areas others miss.

Key Points From This Episode:

Research that has correlated music streaming data with market flows.
Shifra unpacks some of the recent trends and predictions for private equity's fundraising and returns.
Looking at venture capital and its forecasts, recent performance, and expansion of valuation.
Recent historical perspectives and short-term trajectories for real estate assets.
The statistics that can help investors determine the best niche strategies.
A recap of today's key takeaways; slowing of fundraising and deals, and the areas of increased demand.
An explanation of the factors that drive the performance of an asset.
Manager outperformance and the methods and strategies that determine success.
Shifra's perspective on comparing returns from alternative assets with those from public markets.

Bio

Shifra Ansonoff is the Global Head of Research at Preqin, carrying the remit of obtaining valuable data and insights on alternative assets via conversations with GPs and LPs, thus contributing to the industry’s most comprehensive private capital and hedge fund data sets. A 20+ year veteran of fintech, Shifra has acquired expertise in risk management, product and relationship management, and data governance. Previously, Shifra led the global operations team for the analytics solutions division at Qontigo (previously Axioma). Prior to, Shifra was with BlackRock Solutions and Bloomberg. Shifra has been an active mentor at Rutgers Business School, for which she received a Mentorship Excellence Award in 2018 and was shortlisted by Waters Technology’s Women in Technology and Data Awards for a Risk Professional of the Year award. She holds a bachelor’s in Economics from Sarah Lawrence, and an MBA in Finance from Rutgers University.

Preqin

Preqin is the “Home of Alternatives”, the foremost provider of data, analytics and insights to the alternative assets community. Preqin has pioneered rigorous methods of collecting private data for more than 17 years, having built a revolutionary analytics platform that provides clients cutting-edge workflow tools and insights. Preqin also has a dedicated client services team that works around the clock as an extension of the in-house research and data teams at customers of Preqin. With Preqin more than 170,000 global professionals are streamlining how they raise capital, source deals and investments, understand performance and stay informed.

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Episode 24: Show Notes

Today on the show, we welcome Onic V. Palandjian, a partner of Group RMC, to discuss investing in office real estate. Office has become a controversial property type within real estate, given the massive disruption COVID-19 caused in occupancy rates, the debate around work from home and what normal looks like as the pandemic subsides. Onic talks about what attracts him to office real estate today, where he is finding value in the market, and what he looks for when deploying capital. Group RMC owns 21 million square feet of office property, So Onic has a unique on-the-ground perspective of trends. Tune in for this fascinating discussion!

Key Points From This Episode:

The origin of Group RMC and their investment approach through various cycles
RMC’s investment philosophy of looking for bargains, being contrarian and investing in unpopular markets
How they source deals and ideally try to be a provider of liquidity to funds approaching their end-of-life
What gets Onic excited about office real estate today, and how they look for deals below 70% of replacement cost and 7-10% cap rates
Why deals between $50mm and $150mm in size are a sweet spot
How they counter-intuitively like buying properties with low vacancy rates, and why that can improve returns over time
Discussion around COVID impacts on office real estate, and how tenant preferences of building layouts and amenities have changed

About Onic

Onic is a Partner at Group RMC www.grouprmcusa.com. Throughout his 30 year career he has been instrumental in originating and executing investments in excess of $2.5 billion in shipping, technology, industrials and real estate.

He provides family offices and institutions direct access to income-producing investments. RMC's strategy focuses on commercial real estate, acquired at steep discounts, that produce passive income and upside.

Onic earned a BSc in Management from Bentley University and a CSS in Business Administration from Harvard University.

You can reach him on onic@grouprmcusa.com

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Today our listeners are in for a real treat. We have the opportunity to speak with and learn from David Hornik of Lobby Capital. David has worked with technology startups in software for nearly two decades, enjoying exceptional success over the years investing in companies like Splunk, Fastly and GitLab. David talks about the evolution of the venture capital industry, how he adds value to founders, and what he looks for when making startup investments. Our listeners are sure to come away with some great insights!

Key Points From This Episode:

A quick look at David's long and varied career in and around the world of venture capital.
How David navigates the competitive dynamics of funding successful startups.
The value and resources David brings to help startup founders be successful outside of purely capital.
Characteristics of founders that get David excited about an opportunity.
Reflections on the good and bad deals in David's career and what separates them.
The frothy environment in venture capital valuations, and how early-stage investing can be somewhat insulated.
His specialization in software and why he does not stray outside the vertical.
A perspective on the blockchain, Web3, and crypto space.

About David Hornik

David is a Founding Partner with Lobby Capital and the creator and Executive Producer of The Lobby Conference. He invests broadly in information technology companies, with a focus on consumer-facing software and services, enterprise applications, and infrastructure software. He is the author of the first Venture Capital blog, VentureBlog, and the first Venture Capital podcast, VentureCast. Prior to Lobby Capital, David was a General Partner at August Capital for 20 years. David teaches business and law at Harvard Law School and Stanford’s Graduate School of Business.

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Today we speak with Thomas Hayes, founder of Great Hill Capital, a long/short equity manager based in New York City. Tom outlines the opportunities that he’ll be focusing on in 2022 - from two tangible investment ideas to the sectors that he thinks are most compelling today. He also discusses his value-based investment approach, and areas of portfolio management, such as position sizing and risk management, that are top of mind for investors. He provides further insights into the current commodity cycle, geopolitical risk, and the impact of the crisis in Ukraine.

Key Points From This Episode:

Introducing our esteemed guest and his deep background in the financial markets.
Taking a chance in 2012 to start on the road to founding Great Hill Capital.
Describing the importance of attracting like-minded clients.
How Tom deals with risk management around building large positions.
Two big ideas for 2022, and why!
How long he is willing to hold stock that he feels is undervalued.
The thesis for why he thinks biotech is a compelling sector.
Where we are in the current commodity cycle and how he thinks the cycle will play out.
Talking about the impact of the crisis in Ukraine.

About Thomas Hayes

Thomas J. Hayes is Chairman and Managing Member of Great Hill Capital, LLC - a Long/Short Equity Manager based in NYC - servicing Accredited Investors and Qualified Institutions.

Thomas makes regular TV appearances on Fox Business, Yahoo! Finance, Bloomberg, BBC, CGTN America, Cheddar, OAN and i24News. He is frequently quoted in The Wall Street Journal, Financial Times, CNBC, Reuters, Fortune, USA Today, U.S. News & World Report, Kiplinger and MarketWatch.

He graduated from Columbia University and serves on the Pension Commission for the Town of Ridgefield, CT - where he lives with his wife and two daughters.

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While the shipping industry has forever been cyclical, it’s been on a particularly wild ride in the era of COVID-19. Shifting supply chains, continual bottlenecks caused by the pandemic, and eventual post-COVID recovery, all have a significant impact on shipping. So how can you best position yourself to benefit from these dynamics in 2022? On today’s episode of The Pitch Podcast, we speak with J. Mintzmyer, the Founder of Value Investor’s Edge and an expert in maritime shipping, who explains how supply chain disruptions have affected the shipping sector and beyond, the impact of new environmental regulations, and how his team values shipping stocks. He also shares his investment framework, including how to know when a market move is something you should pay attention to versus when it’s just volatility and noise.

Key Points From This Episode:

The fascination with international trade that got J interested in the maritime shipping sector.
Insight into the kinds of cargo these ships carry, from crude oil and dry bulk to containers.
J unpacks how the supply chain crisis impacted the shipping sector and his investments.
Find out how pricing works for shipping companies based on historical precedents.
Some of the weaknesses in the shipping system and how they play out.
How long J believes the supply chain crisis will persist and his advice for investors.
Learn how rates are impacted by the supply of ships and why there are so few new ships hitting the water in 2022
Why J says that new environmental regulations will actually be very bullish for the sector.
His view on whether or not fewer, slower ships will lead to further inflation for consumers.
The private market component to shipping and some insight into J’s investments.
How his team values shipping stocks using both quantitative and qualitative metrics.
Why qualitative metrics such as a competent management team are of crucial importance.
Price to NAV (net asset value), future projected cashflows, and price to book valuation methodologies.
An example of a recent investment that J made that typifies his approach.
What gives J and his team an edge in the shipping sector.

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[SHOW NOTES]

These days it feels like the price of everything -- from housing, cars, gasoline, and even travel -- is skyrocketing. Today's guest, Kevin Muir, makes the argument that the inflation we are seeing around us is not a transient blip that will normalize with the easing of the pandemic, but an enduring force and a new economic reality. Kevin is the author of the MacroTourist Newsletter, with a tongue-in-cheek tagline of "All I Bring to the Party is 25 years of Mistakes." He is an expert macro thinker and trader and offers many nuggets of wisdom throughout the episode.

Key Points in This Episode

Kevin's career evolution from trading at a prestigious investment bank to striking it out on his own
How it's easier to make money than to keep it, and the importance of remaining humble and constantly learning
His views on market bubbles, and how today's environment compares with previous bubbles
The rise of the retail trader as a formidable market force, and how hedge funds have to now think harder about right-tail risk
Modern Monetary Theory and its place in the current debate
How the fiscal and monetary response to COVID was different from past cycles and will have different consequences
What has changed in the market that will lead to inflation enduring in the 4-5% range
How to position portfolios in the new economic regime

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Show Notes

Today’s guest, Tobias Carlisle, believes that deeply undervalued and out-of-favor stocks offer asymmetric returns, with the potential for a limited downside and a greater upside. Tobias is the founder and managing director of Acquirers Funds. He’s written three books on value investing and has significant experience in investment management, business valuation, and corporate governance. Today he introduces us to the concept of the Acquirer’s Multiple, which is also the title of one of his books, and what he believes is the secret to beating the market. In this episode, he explains how he developed this concept and what it is based on. Tuning in, you’ll hear what is meant by mean reversion and the different ways a discount evaluation is removed. Tobias explains why excess debt doesn’t scare him off, what three factors he uses to determine a margin of safety, and what he looks for when he does a forensic accounting diligence of financial statements. Tune in to find out more about value investing and how Tobias has achieved so much success through it.

Key Points From This Episode

An introduction to Tobias Carlisle and the strategies for the funds he manages.
The ways a discount evaluation is removed.
What mean reversion is and why it’s a safer bet.
How Tobias developed the concept of the Acquirer’s Multiple and what it is based on.
Why excess debt doesn’t scare Tobias off.
The three factors Tobias uses to determine a margin of safety.
The role of humility and acknowledging what you don’t know when investing in a company.
The time horizon Tobias looks at for a stock to mean revert and why the valuation is easier the further out you go.
Thoughts on when to cut your losses if it doesn’t mean revert.
Business performance versus investor perception and which plays a greater role in stocks that do well.
The industries best suited to Tobias’s style of investing.
Thoughts on why people continue to buy expensive stocks when cheap stocks tend to outperform them in the long run.
How Tobias goes about doing a forensic accounting diligence of stocks, and what he looks for in the results.
The two schools of thought on why value investing works.
What Tobias looks for when shorting stocks.
Whether or not there are currently that many deep value stocks out there, given the overall rise in asset and equity prices.
Why Tobias believes that value can do well on an absolute basis on a three to five-year time horizon.
Insight onto the two ETFs that Acquirers Funds run and how they differ.

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Show Notes

With real estate values soaring to new highs, it’s common to wonder how to incorporate the risk of a potential market correction while still participating in property appreciation over the long term. Our guest today, Gabe Bodhi, is a Denver-based professional real estate investment manager who shares insights learned through previous market cycles. Gabe discusses the various inefficiencies of the non-institutional real estate market and how value-add and mismanaged real estate can present attractive opportunities for savvy investors.

Key Points in This Episode

Gabe's depth of experience in the financial markets and how he came to found Tekton Group
How markets are cyclical and tend to overshoot on the way up and down
Why he is a value investor and how he weaves value into his investment strategy
The view that leverage is beta and not alpha, and how to employ leverage in real estate transactions
Important areas for due diligence, and how physical due diligence can uncover potential red flags
How he looks for value-added and mismanaged real estate as investment opportunities
The inefficiencies that are prevalent in sub-institutional real estate investing, and the enhanced return opportunities
The metrics he employs to value and transact real estate, including unlevered yield to total cost
Compares real estate to public stocks, and how REITs and private real estate are similar and different
Why Colorado is an attractive market and why he invests predominately in that market
How to find the right investment manager and the risks to watch out for when selecting a private real estate manager

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Show Notes

With startup funding at record levels, many investors are trying to keep updated on key investment themes and funding trends in the market. We have a timely discussion with Christine Hall, a reporter for Tech Crunch, who shares her insight into areas of startup funding that are attracting increased attention from the investment community as well as where to look for future opportunities.

Key Points in This Episode

Growing areas of e-commerce, including the pet space and restaurants
Roll-up strategies in consumer brands
What is food tech where to find the innovation, for example: food trends beyond alternative meats, coffee without coffee beans, plant-based products to reduce less waste, baby foods/ infant nutrition
Areas within fintech getting increased attention: cross border, payments/digital wallets, Africa in the spotlight, education finance solutions
An overview of how VC funding rounds work from an investment perspective
Sentiment in the venture capital space

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Episode 16 Show Notes

With the US markets having enjoyed a strong run, investors are looking for investments that still can compound at attractive rates. We have a timely discussion with David Mullings of Blue Mahoe Capital. David has a deep background in investing, and specializes in the Jamaican market. In this episode, David discusses public and private investment opportunities in Jamaica, and why that market has produced spectacular investment returns. He also weighs in on some important ESG topics, and the role diversity can play in portfolio diversification.

Key Points in This Episode

David’s investing background in the U.S. and how he came to found Blue Mahoe Capital
Key characteristics that make Jamaica an attractive and overlooked investment opportunity
What characteristics David looks for when searching for promising investments
Composition of the Jamaican stock market and key stocks and industries
Public versus Private investments and the best way to get exposure to Jamaica
How he approaches ESG and impact investing
How portfolio diversification can be achieved via diversity

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Episode 15 Show Notes

Show Notes

Want to buy commercial real estate but wondering how to get started? We speak with George Pino and Joe Killinger at Commercial Brokers International and they cover many important topics to be successful. This interview is filled with important nuggets to consider - including benefits of triple net structures, the current frothiness in core markets versus opportunities in secondary markets, and how to approach due diligence in real estate transactions. George and Joe offer their depth of market experience for a highly educational conversation.

Key Points in This Episode

Joe and George’s background and the path they took to become real estate investors
What triple-net real estate means and the benefits of these types of assets
How to think about leverage in real estate and the right amount of debt to put on a transaction
Their view of the current investment environment in real estate and where there may be opportunities
The benefits of secondary markets in real estate
What to look for in real estate transactions and how to do your due diligence
Practicalities around investing in real estate such as title documentation and estate taxes

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Episode 14 Show Notes

The meteoric rise in the value of cryptocurrencies seems to be the topic du jour. Whatever your thoughts on the value of crypto, the blockchain technology underpinning it is likely here to stay. In today’s episode, we interview Aly Madhavji, managing partner at the Blockchain Founders Fund, and he discusses the investment opportunities within the broader blockchain industry. He touches on the diverse use cases of blockchain, and where the industry is headed.

Key Points to this Episode

Aly’s extensive background in blockchain as Senior Blockchain Fellow at INSEAD, advisor to the UN, and manager of a venture fund
The importance of a global reach when investing in blockchain and where the unicorns are found
The fundamentals and differences between blockchain and crypto
Why he thinks we are not in a crypto bubble
How we are in the early innings of blockchain growth and fascinating use cases in a variety of applications
Venture funds and issues with the current structure of performance fees
Pros and cons of accelerator programs
What he looks for in a perfect founder

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Episode 13 Show Notes

Private credit is a game everyone is involved in. In today's episode, we speak to Colin Kilgour of Kilgour Williams Capital. In this episode we talk about the attractiveness of private credit and how fintech lending platforms have changed the game.

Colin is the manager of the firm Kiwi Private Credit Fund, and he shares his knowledge in the private credit market.

An Introduction of our guest Colin Kilgour.
Developing your expertise in private credit.
Definition of private credit and comparing it to publicly traded debt.
Colin’s role in the process.
Competitors in the marketplace.
The investment case for private credit.
Why aren't banks competing?
Who are the industries that tend to be the borrowers with the loans?
The effects of COVID in the marketplace.
Diversification in private credit.
More important trends to watch for.
The warning signs that your portfolio could be affected.

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Summary

Choosing the right hedge fund manager can be a difficult choice. In today’s episode, we speak to Mark Kress, the Chief Investment officer at Arden Advisory about what to look for when choosing a hedge fund manager.

Mark brings valuable portfolio management expertise, a record of building strong relationships, and experience employing risk management and asset allocation strategies to maximize risk-adjusted returns. His unique background includes identifying unique investment strategies, introducing technology solutions, and providing research to support decision-making. Mark holds a BS in Managerial Economics from the University of California at Davis, an MBA from the University of California at Berkeley Haas School of Business and is a Chartered Financial Analyst (CFA).

An Introduction of our guest Mark Kress.
Opportunities that can be found in hedge funds.
The first screen is whether they are going to add value to my overall risk adjusted returns
How to determine what hedge funds to add to your portfolio.
Why volatility is not a secondary concern.
Being a small cap manager of hedge funds, and keeping it small, and investing in things that have capacity constrained.
The second most important thing is if it is replicable.
You should look for the odd savant type managers, because that is the way you can deliver exceptional returns on an ongoing basis.
Once you have found hedge funds that interest you, tips to know if you should add the fund to your portfolio.
The role of a hedge fund allocation in a portfolio. Moving from a core portfolio of stocks and bonds and real estate and private equity venture capital.

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Summary

When it comes to equity fund management, you can never know enough. In today’s episode, we speak to Danilo Santiago, Founder of Rational Investment Management, about the strategies he has implemented to best predict and navigate the tricky world of value investing. First, Danilo lets us know what sets his approach apart from that of other equity fund managers and gives us the lowdown on how earning cycles impact prices. Next, he talks about the four strategies that inform his work and what he considers to be the three legs of a successful strategy. We touch on why Danilo considers multiples but does not factor them into his model and he lets us know what he requires of companies in terms of buybacks and dividends before including them in his portfolio. Next, we talk about the term ‘Circle of Competence’, coined by Warren Buffet and on which Danilo has curated his basis of companies. We dive into the influence of market cycles and macro events and talk about how looking at a company’s methodology guides us in predicting its future. Danilo shares a word of advice: fully invest when you see opportunities, and he explains the value of letting your net exposure vary. In closing, we discuss the importance of having a pre-emptive approach rather than a reactive one and Danilo gives us his predictions for the future of value investing. Tune in today to soak up the wisdom of a master in the field of equity fund management!

Key Points From This Episode:

An introduction to today’s guest, Danilo Santiago.
Danilo’s educational background in engineering and business.
How his approach differs from that of many other equity fund managers.
How earning cycles impact prices.
The four strategies that Danilo runs.
Three legs of successful strategy; full strategy, portfolio construction, fundamental analysis.
Why Danilo considers multiples but does not factor them into his model.
The requirements of being included in Danilo’s portfolio in terms of buybacks and dividends.
Which industries are most conducive to Danilo’s analysis.
Defining the term, ‘Circle of Competence’ and the influence it has had on Danilo’s strategy.
How Danilo has curated his basis of companies.
Defining ‘unknown unknowns’.
How market cycles and macro events factor into constructing a portfolio.
How methodology can help to predict future performance.
Why you should only fully invest when you see the opportunities.
The value of letting your net exposure vary.
Who Danilo’s strategy is ideal for: sophisticated, financial, well trained individuals.
Why you should be pre-emptive rather than reactive.
Danilo’s predictions for the future of value investing.

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**Summary

On today’s episode of Pitchboard we speak with Greg Babij of Bunkport Capital, a long-short equity hedge fund manager with over 25 years of experience under his belt. We kick off the conversation with a conversation about Greg’s career history and introduction to Wall Street in 1995. Next, he talks about the ways in which computers and algorithms have changed and influenced the market. We touch on the influence of GameStop and other forms of meme stock and unpack how to identify stabilizing and destabilizing environments. Next, we talk about time decay and how this affects the options buying environment. Greg explains to us that it is counter-intuitive for humans to succeed at trading and the mindset shift required to become successful in this space and runs us through the impact of the pandemic on the market. He finishes our chat with a word of caution around leverage and the risks involved in permanent capital. Tune in to today’s episode for a whole lot of wisdom around the options market.**

Key Points From This Episode:

The details of Greg’s career history and introduction to Wall Street in 1995.
The replacement of large dealers and market makers with computers and algorithms.
The changes that have occurred in the options market since the mid-1990s.
How GameStop and other forms of meme stock have influenced the options market.
Stabilizing and destabilizing environments.
Where Greg finds the data he needs to identify the current environment.
What the two-fold job of a portfolio manager involves.
Why investors can’t go with a traditional 60% equities, 40% bonds model today.
How the time decay works when you are exclusively buying options.
How the market has moved from ‘buy low to sell high’ to ‘buy high to buy higher’
The ways in which humans are designed to be bad traders due to their survival instinct.
How new services for retail investors have made charting packages much easier to find.
Why the pandemic sparked interest in investment and how that is trailing off.
The difference in risk between investing in options versus using borrowed money.
A word of caution about leverage and permanent capital being called away.

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**Summary

If you’re interested in diversifying your real estate portfolio, eliminating the usual taxes you are required to pay on your real estate investments, and contributing to the regeneration of lower income areas at the same time, you have come to the right place. Joining us on the show today is Jeff Feinstein, previously a technology executive who is now a managing partner at Pinnacle Partners. He is here to share the numerous compelling reasons why real estate investors should be looking at opportunity zones. Jeff explains what an opportunity zone is, why he decided to become involved in projects of this type, and the requirements for investing in them. He and his team have seen a great deal of success by focusing on affordable housing developments in opportunity zones, utilizing a single entity deal model, and Jeff believes that the future of these zones is looking bright (even with the recent change in oval office).**

Key Points From This Episode:

Jeff’s reasoning for getting into real estate while he was working as a technology executive.
The real estate fund that Jeff and his partner started in 2007, and how it kickstarted his career in real estate.
A piece of reform legislation that was introduced in 2017 which Jeff became particularly interested in.
What Jeff’s company, Pinnacle Partners, does, and where it operates.
An explanation of what an opportunity zone is, and why it is so beneficial to invest in real estate within them.
Positive social impacts that are intended to be realized through the creation of opportunity zones.
Three requirements that need to be adhered to if you purchase real estate in an opportunity zone.
The types of developments that Pinnacle Partners has chosen to invest in within opportunity zones.
Single entity deals; what these are and why Jeff and his team choose to do them.
Tax benefits of opportunity zones should only be considered after the deal has been properly evaluated.
Why Pinnacle Partners does not deal with brokers.
Investor types that are generally interested in opportunity zones.
Slight changes that have occurred in the opportunity zone program since Biden came into power.
Jeff’s thoughts about potential inflationary spikes.
Typical loan to value ratios of the projects Jeff and his team work on.

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On today’s episode of the PitchBoard, we talk to Kalsoom Lakhani, founder of i2i Ventures, the first female-led venture capital fund in Pakistan. Kalsoom kicks off the conversation by telling us about the beliefs that sparked the birth of her company, Invest2Innovate. She goes on to give us some background on the Pakistani startup investment climate and the factors that make Pakistan a compelling opportunity for investors. We talk about how Pakistan’s changing economy compares to the Indian climate and touch on the effect of COVID in pushing entrepreneurs to embrace digital in 2020. Kalsoom explains how a different mindset is required for venture capital than real estate and expounds on the advantages of running two sister companies that feed into one another. She goes on to speak about the flexible nature of venture and its potential to contribute to a better world and closes with some thoughts on the pressures of being a female-led venture capital company. Tune in to hear this powerhouse business-owner tell her story and get inspired to allow your values to inform your career!

Key Points From This Episode:

How the belief that the world’s best innovators come from unexpected places led to the birth of Invest2Innovate.
Recent rapid growth in Pakistani startup investment; the high potential of those markets.
The danger of investors taking on too much equity too early on.
The elements that make Pakistan so compelling from a macro and scales perspective.
What has changed to enable FinTech companies to raise a significant amount of capital.
How Pakistan’s changing economy compares to the Indian climate.
How COVID pushed entrepreneurs to embrace digital in 2020.
Why India is more expensive for early-stage investors.
Why FinTech is especially exciting in Pakistan at the moment.
How Invest2Innovatesees local players and startups as having an advantage over regional players.
The different mindset required to invest in equity versus real estate.
How having a sister company gives Invest2Innovatebetter access to deal flow.
How supporters wanting to see Pakistan succeed helps garner greater investment, even though Invest2Innovateit is not a socially-driven enterprise.
The flexible nature of venture capital and the potential it has to contribute to a better world.
How being a female-lead venture capital company creates pressure to outperform competition.

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The age-old question of how to get the most out of investing in property prevails in 2021. If Storage Wars is your only frame of reference for the self-storage industry, it’s time to get educated! Today, we talk to Kenneth Nitzberg of Devon Self Storage about why this real estate sector is one of the most reliable profit-bearing avenues of investment you could take. Kenneth talks us through discerning when it is a time to buy, sell or build and how Devon Self Storage has prospered through the COVID-19 pandemic. Kenneth tells us how the online market and failed retail has supported the self-storage industry. Next, he details the perils of being too honest when you’re putting in a bid, why cities are hesitant to accommodate self-storage, and why Storage Wars is, in fact, a big scam. Lastly, Kenneth unpacks the ways in which self-storage is recession-resistant, but not quite recession-proof because the only industry that may fall into the latter category is likely to be beer. Kenneth concludes with the truth-bomb that the best way to make money is not to lose it in the first place. Tune in to better understand this underrated area of the real estate market and to learn how to capitalize on it as you plan your own capital investments.

Key Points From This Episode:

Why the self-storage industry is one of the most reliable and profitable real estate sectors.
Understanding the four food groups of the retail industry: office, industrial, multi-family, and retail.
How to avoid or navigate permit issues when you’re establishing storage space.
The three groups that form Devon Self-Storage’s primary client base - large institutions, high net worth family offices, and third-party property management.
Identifying when it is time to buy, sell, or build in the real estate space.
What has lead to Devon Self Storage’s boom and success during and after the COVID-19 pandemic.
The counter-intuitive concept of making money when you buy and not when you sell.
Ways in which failed retail supports the self-storage industry.
What happens when you’re too honest about converting the use of the space you bid for.
Three reasons why cities are reluctant to afford zoning rites to self-storage companies.
Defining occupancy goals in overbuilt markets.
Why the REITs occupation rates are a misnomer and how Devon Self-Storage has been able to raise their rates from January 2021.
Why Storage Wars is a total scam and how it changed Devon Self-Storage’s auction culture.
The implications of a recession on self-storage; why it is more accurately described as being recession-resistant than recession-proof, and how the trick to making money is not to lose it in the first place.

Links Mentioned in Today’s Episode:

Devon Self Storage

Devon Self Storage on Twitter

Devon Self Storage on Facebook

Devon Self Storage on LinkedIn

Devon Self Storage on Instagram

George Carlin on Stuff

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Even if you’ve never heard the term software as a service (SaaS), you are likely to make use of it on a regular basis. In today’s episode, John Gallagher explains where the concept of SaaS originated from and shares examples of both the consumer elements and the business-to-business elements of it. The SaaS industry is growing with speed, and the company John runs helps founders of software companies to expand their businesses through lending them capital. The company is called Element SaaS Finance, and John explains how their model of lending differs from the traditional venture capital model, and why it offers a much greater degree of sustainability. We also dig into why the company’s interest rates are quite high, why banks generally don’t like to lend money to SaaS companies, the due diligence that John makes sure to do before lending money, competitors to Element SaaS Finance, and one of John’s most important learnings through his years of experience in the space.

Key Points From This Episode:

The origin of software as a service (SaaS) and the massive scope it has today.
Consumer elements and business-to-business elements of Saas, and examples of these.
The growth that is being experienced in the SaaS industry.
How John found his way in the world of SaaS.
Sustainable venture capital versus unsustainable venture capital.
The aspects of SaaS companies that make them appealing to lend to for certain people.
Why banks typically don’t want to lend to SaaS companies.
What a warrant is in the context of lending, and why John’s company doesn’t them on.
Reasons that John’s company places quite high-interest rates on their loans.
Due diligence that John will do before lending money to a SaaS company.
The approach that John takes to dealing with clients.
Competitors to John’s company, and the similarities and differences in how those companies work.
Getting to know the people to who you are lending is vital.
How, on average, John divides his time between current clients and new ones.

Links Mentioned in Today’s Episode:

John Gallagher on LinkedIn

Element SaaS Finance

Salesforce

Oracle

IBM

Marc Benioff

Scaleworks

Lighter Capital

SaaS Capital

Pike

ClearBank

Jennifer Merchant

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Karla Mora is driven by an unwavering desire to create real change in the world through dealing with the deep, underlying problems that persist in our society. Through her venture capital fund, Alante Capital, Karla, and her partners help apparel brands become more sustainable, while still making a profit. The apparel industry has become renowned for the damage it inflicts upon its workers and the environment, but so many brands are looking to decrease their negative impact, and so many companies have the technology which can enable them to do so. On the show today, Karla explains how Alante Capital bridges the gap between these key players in the space, and what makes their fund unique. We discuss the innovative technologies that Alante is investing in, how much more accessible sustainable apparel has become in the past few years, what being a female-founded company has meant for the fund and the exciting direction that Karla sees the apparel industry heading in. Sustainable apparel should be a win-win for all, and Karla is on an admirable mission to make that our reality.

Key Points From This Episode:

Karla’s range of work experience and how these jobs inspired her to embark on the journey she is currently on with her company, Alante Capital.
Exciting developments that Karla became aware of in the apparel industry and why she chose this as Alante Capital’s niche.
Complexities in the apparel industry and how Alante Capital uses these to their advantage.
Levi’s: Alante Capital’s first brand partner.
The service that Alante Capital offers to the brands that they work with.
Some of the new and innovative technologies that Karla is seeing in the apparel space.
Forces that impact sustainability in the apparel space.
How the price points of sustainable apparel have changed over the past few years.
Two conditions that determine whether Karla invests in a business or not.
The win-win solution that Karla always aims for.
Types of companies that Alante Capital invests in and the kinds of investors that they work with.
Karla’s thoughts about how being a women-founded, women-run company has impacted their portfolio.
The commitment that Alante Capital has made with regard to their pipeline.
Competitors to Alante, and how the company distinguishes itself from the rest.
Misperceptions around impact investing that are changing.
Details about the companies that Alante Capital has invested in so far.

Links Mentioned in Today’s Episode:

Alante Capital

Village Capital

Levi’s

Nike

Gap

Patagonia

Eileen Fisher

VF Corporation

The Kering Group

adidas

J.P. Morgan

Old Navy

Lululemon

BlackRock

Tesla

Mango Materials

Lizee

Reebok

Jennifer Merchant

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It’s hard to believe, but over 80% of global payment transactions take place in cash. Warren Fisher, our guest on today’s show, is eager to see that number decrease and for digital transactions to become the norm. Warren’s company, Manole Capital Management purely deals with Fintech companies, specializing in the payment space. Not with the typical big payment players that you might be thinking of such as Visa and Mastercard, but with the payment processors and merchant acquirers whose names you have most likely never heard. Our discussion with Warren delves into why he has chosen the payment space as his niche, how COVID-19 has done a lot to boost the e-commerce industry, and why he believes that Fintech growth is only just beginning. We also discuss the most advanced digital payment solution of the last 10 years, which originated in an emerging economy country, the country which is nearing a cashless system, short-term trading versus long-term investing, and Warren’s thoughts on Bitcoin. We hope you learn as much as we did from this episode!

Key Points From This Episode:

Fintech; as defined by Warren, and what he sees as the “quintessential Fintech space.”
Current trends towards passive investments and specialization.
Characteristics that Warren looks for in a business that determine whether he wants to invest.
Why Warren’s company doesn’t utilize revenue multiples.
The numerous types of players in the payment space, which you have most likely never heard of.
How COVID-19 has accelerated the e-commerce trend and Warren’s future predictions.
Sweden’s trajectory towards a cashless economy.
Elements that make the Manole Fintech Fund different from other funds.
What the short books and long books in Warren’s company look like.
A brief analysis of the GameStop saga.
Why Manole Capital focuses much more on long-term investments than short-term trading.
Issues that Warren has with Bitcoin, and why he always has a laugh on May 22nd.

Links Mentioned in Today’s Episode:

Manole Capital Management

Goldman Sachs Asset Management

Morningstar

Visa

Mastercard

PayPal

Global Payments

FIS

Pfizer

Heartland Payments

Square’s Cash App

Adyen

Braintree by PayPal

Stripe

Chase

First Data

Wells Fargo

Citi

McKinsey Consulting

M-Pesa

Bitcoin

Best Buy

Laszlo Hanyecz

Jennifer Merchant

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With the critical thinking skills of a lawyer and the business savvy mindset of a real estate investor, Brian Adams joins us on today’s show to discuss his personal experiences in the real estate industry, and some of the main trends he is seeing in the broader real estate world as a whole. Brian’s private equity firm, Excelsior Capital, works with non-institutional accredited investors. Brian explains how they have built up a reputable name for themselves, the roles that he fulfills in the company, and the three core provisions that they offer to their clients. If you are new to the real estate field, you’ll learn about cap rates, the impacts of inflation, and the difference between a fund and a syndication. Furthermore, Brian shares his thoughts on why the US real estate market is so secure, why secondary growth markets are booming, his expectations for interest rates in the coming months, and how the COVID-19 pandemic has affected real estate.

Key Points From This Episode:

Factors that led Brian to leave law and open a private equity firm.
How Brian’s law background helps him in his current work.
What Brian’s job entails for the most part.
Mistakes Brian made early on in his investment career, and what he learned from them.
The three things that Brian’s company does for their clients.
Differences between a fund and a syndication.
Types of investors that Brian’s company works with, and why they avoid institutional investors.
A comparison between a $10 million deal and a $100 million deal.
Brian’s strategy for sourcing deals.
An example of how Brian’s company likes to “pay it forward” to their brokers.
Why Brian believes that the US commercial real estate market will continue to thrive.
Parts of the US that are becoming more and more popular for investors, and why.
What is currently happening to interest rates, and what Brian expects to see in the future.
Conditions that Brian’s company looks for when investing in a deal.
The types of investors that Brian’s company works with.
Inflation and its impacts on the real estate industry.
Changes that have been brought about by the COVID-19 pandemic.

Links Mentioned in Today’s Episode:

Excelsior Capital

Brian Adams on LinkedIn

CBRE Group

Cushman and Wakefield

Maple Leafs

Nashville Predators

Jennifer Merchant

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Today we are joined by the Vice President of Townsend Street Capital, Charles Zalud, to talk about the opportunities of lower middle market investment and how his company is making the most of these in the current climate. In this punchy interview, Charles gives us some great insight into the way Townsend works, and what differentiates them from their competitors, highlighting their pool of human resources and active philosophy to longer-term hold periods. We also get into some important definitions, with our guest clarifying exactly what is meant by 'lower middle market' and 'committed capital' in the context of his business. We cover the changes we have seen through the last year, and some of the surprising stability that has been present despite the pandemic, before going on to cover ideal partners and investments from Townsend's perspective. Our guest also shares their idea of sticking to the industries and sectors they know best, and drilling down with expertise and experience for the greatest returns. So for all this and a whole lot more, be sure to join us.

Key Points From This Episode:

Charles' professional background, investment experience, and how he joined Townsend Street Capital.
Impacts of the pandemic on investment opportunities; what Charles has noticed.
Unpacking exactly what is meant by the term 'lower middle market'.
How Townsend's focus on the middle market segment allows them to be more selective with their investments.
Imbalances of supply and demand in the middle market that enhance Townsend's ability to make good purchases.
Why Charles positions himself and the company on the side of active investment.
Thoughts on ideal investments from Charles; partnering, seller profiles, and equity.
The long-term investment approach that Townsend favors and their average hold periods.
Townsend's focus on specific sectors and industries in which they are experienced.
Charles' definition of 'committed capital' and the pros and cons of this model for investment.
The human resources at Townsend's disposal while approaching the lower middle market.

Links Mentioned in Today’s Episode:

Charles Zalud on LinkedIn

Townsend Street Capital

SI Capital

Jennifer Merchant

PitchBoard

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Staying diversified and flexible is almost always a good thing with regard to your real estate investments. Here on the show today to talk about his approach and fund is Hussain Nathoo from OrangeStone Capital! Our guest is based in Houston, Texas and we get to hear from him about managing the fund, how he got into the real estate game, and some of his thoughts on the market in Texas currently. We delve a bit into his focus on the state of Texas and how he has diversified within this geographic location, before getting some insight into the particulars of the fund, how he manages it, and how to make the most of good opportunities that present themselves. Hussain offers some great thoughts on prioritization, how this can simplify decision-making, and we also talk about what makes the top of OrangeStone's list! The conversation covers the impacts of the pandemic, leverage and loans, and differentiating a fund from competitors. For all this and a whole lot more, be sure to tune into The Pitch Podcast today!

Key Points From This Episode:

Hussain's professional background and his entry-point into investing and starting a fund.
Some thoughts on the power of real estate assets as a safe investment.
The key elements to Hussain's approach to investing: 'Utilizing the underlying dirt'.
The range of deal-sizes that OrangeStone Capital generally looks for.
Creating an edge and differentiating from the array of other funds in the market.
Leverage in deals; OrangeStone's philosophy towards underwriting and loans.
Assessing the right moment to sell and why Hussain bases this on risk.
Hitting the right level of diversification across the industry for a good level of exposure.
A good example of an OrangeStone deal in Texas from a couple of years ago!
Concerns over inflation rates and where the market may go from here.
The effects of COVID and how things have played out across Texas for Hussain.
A stand-out investment lesson that Hussain learned from a failed deal in 2012.
A quick breakdown of the setup at OrangeStone; employee numbers, asset value, and more!
How Hussain approaches balancing the different aspects of his role and pursuing the right deals.
Closing thoughts from Hussain; fostering continual evolution for growth and longevity.

Tweetables:

“From an overall perspective, I think you have to allocate some of your dollars to real estate. It's traditional economics and asset allocation. I think you have to have diversification within real estate.” — @hussain_nathoo [0:02:57]

“We're generalists by nature, just due to the various real estate assets that we own. But we are hyper-focused on land.” — @hussain_nathoo [0:06:07]

“We rarely ever drop deals because we generally identify everything we need to know prior to putting a deal under contract.” — @hussain_nathoo [0:06:33]

Links Mentioned in Today’s Episode:

Hussain Nathoo on LinkedIn

OrangeStone Capital

Hussain Nathoo on Twitter

University of Texas at Austin

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