The Distribution by Juniper Square
00:32:41 · David Wachter
[00:32:41] S0: So to start with, we're deliberately building a portfolio that is, what I would say, pick and shovels and not, you know, getting in front of the freight train. So we're not investing in AI only businesses. Of course, we all know which ones would have been the right ones to pick today. But will they be the right ones? The right ones today, will they be the right ones five years from now? So it is a massive amount of capital and a massive arms race. And I've been investing for a long time. So I started this firm after the tech bubble and then the telecom bubble. So while we're we're not in... We are we are... AI is a incredible... Will be a life changing technology for all of us. Picking the horse is not something that we're intending to do. So our business is about risk adjusted returns by providing that liquidity. And what we say is we invest halfway through the horse race. So by providing liquidity to other GPs and participating in the final leg of growth of those businesses before exit, our strategy is about midlife risk adjusted investments and exiting in a three to five year time frame. So we love our strategy. We love the alpha it generates. So where do we see back to the macros? I think that salesforce.com is probably the best example, which is the market took the view that it's all over. It's not. It's not. There are millions of people who have spent decades putting data into those databases and practicing with those tools. And the ability to now overlay an LLM inside of Salesforce is where the power is and where the future is. So it's not the end of software, but it is a phase where the productivity that we'll all get out of our software tools is gonna be extraordinary. So you're you're dragging me back into my engineering and tech bias. But at the end of the day, we're building a balanced portfolio. So our views on tech are important. But like I said, we're not trying to get in front of the freight train. But but where are we today? I think we're in a period of growth and expansion. But I do think the most important thing in private equity, with a strong bias is that there's too many private equity assets and too much capital in the asset class. And it needs to figure out how to grease the wheels of return capital back to your investors so they have enough capital to give you capital again to go do new deals.
00:35:33 · David Wachter, Brandon Sedloff
So the feedstock for the next generation of private equity investments needs to be distributions, and IPOs are not gonna fix that. So we just think more and more interim liquidity is going to be a super healthy and critical part of the growth of the market, and that... That's definitely gonna keep us busy for the next ten years. [00:35:57] S1: Well, unfortunately, we're out of time. That's about as good of a place as any to wrap up. I really appreciate your perspectives. Thanks for coming by and spending some time with me on the distribution podcast, and I look forward to watching your continued growth over the next decade. So thank you so much, David. [00:36:10] S0: And yours too. Thank you so much. [00:36:13] S1: Thanks for listening to the latest episode of The Distribution by Juniper Square. If you like today's podcast, please share it with a colleague or a friend. And don't forget to subscribe and rate The Distribution on Apple Podcasts, Spotify, or wherever you listen to podcasts. You can connect with me on LinkedIn by going to www.linkedin.com/in/bsedloff, or you can find me on Twitter at b Sedloff. You can also find a video recording of this conversation on demand at Juniper Square dot com forward slash the dash distribution. Until next time.