STROTW 05-24-2024
Catching Up
Been in the arena, etc. Enjoy!
(i) Private Equity Deals with Capital Allocators -- Classic Deal - Burger King by 3G Capital
Great interview with the guys who run 3G, Alex Behring and Daniel Schwartz. Talk in depth about Burger King, where they made 28X their equity (!).
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(ii) Armen Panossian - A Primer on Private Credit
Guy who runs Oaktree’s business. Also, Risk-Adjusting the Returns to Private Debt Funds “The rates at which private debt funds lend appear to be high enough to offset the funds’ fees and risks, but not high enough to exceed both their fees and investors' risk-adjusted rates of return.” (ha).
Also see: Contrary Research: The Great Bank Unbundling. And: Cogent Funding, LLC, Secured IPv4 Lease Revenue Notes, Series 2024-1 Cogent is securitizing IP addresses. And: Twitter: Hedge Fund launches over time via BB.
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(iii) Freightwaves: Over the past decade, C.H. Robinson lost its moat to innovation and competition
Craig Fuller on $CHRW.
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(iv) Sonida Senior Living
On the senior living cycle— this is the one that Michael Simanovsky is involved in (he talks about the industry thesis here). Also see: KKR: When Fear Is a Friend – US Multifamily in Focus.
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(v) Kelly Partners Group Stock Explained w/ Brett Kelly
Lawrence Cunningham is on the board here and they were in Omaha for the Berkshire meeting. Though it’s funny that Brad Jacobs specifically said he looked at rolling-up accounting and tax firms but thought that AI could kill the industry. Also see: Who's Going to Consolidate all These Software Companies? And, more in “compounder roll-ups:” Biz Almanac: Deal or No Deal Review of Couche-Tard's Acquisitions and Return Prospects (see here).
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(vi) An Unexpected Player Has Begun Providing Auction Guarantees
The Toledo Museum of Art made $500,000 this year using the financial instrument. 'The beauty of it is they win either way,' MoMA's director said.
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(vii) Twitter comment on poker theory
I just thought this was a really good intuitive description of +EV strategy
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(viii) Notable people
The most notable people from many geographies.