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Written by : Millard Supplee |
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Thanks for your comment Cira Buckles, have a nice day.
- Millard Supplee, Staff Member
good morning from sue chusetts here with Michael 5 american securities and your strategy thanks mark great to be here we were founded 21 years ago with and started our firm with outside capital o our origins go back to nineteen forty seven today we have about twenty companies in our portfolio revenues over 13 billion neba da of about two and a half billion across 20 companies given the current valuation environment how does this impact your approach if it's a great time to exit a company can it still be a good time to be buying companies we we think it can but as in all times in investing you got to be careful you got to do a lot of due diligence and you have to be partnered with great management teams so we're always trying to meet great management teams and invest in industries that we think can withstand downturns and have growth opportunity always in partnership with the existing management teams you just had a very you just complete a very successful fundraise you have a additional capital put to work does this impact your approach at all is your underwriting change you feel more pressure to put money to work not really we we feel great grateful that investors trusted us with capital again and so our current 5 billion dollar fund is certainly a little bit bigger than our prior 3.6 billion dollar fund but we think that just means more deals more diversification exactly the same deal size exactly the same processes and as our team has gotten bigger we think they have the capacity to do that although it's never easy and it's always hard and we'll be working hard to do it we've seen some recent trends in the industry from introduction of operating groups we've seen distressed debt initiatives ESG has become a focus GPS going public can you share some of your views on these and maybe what do you see as trends going forward for the industry sure you know the origins of private equity were two guys trying to do deals typically with financial backgrounds and in the current environment you have to make companies better once you own them and you have to understand them better to make sure you buy the right ones so we started about a dozen years ago we call our resources group today it's actually bigger than our investment team in terms of number of people these are functional resources and strategy IT human resources we have an office in shanghai china all to help our companies be better and help us understand those companies before we invest so I think all firms need an answer to how are you making that come better once you invest what are you bringing other than capital to management in terms of ESG that's a very important topic it is it started I think more in Europe and in Asia but it's migrating more and more to the u.s. we have a set of firm values that we think incorporate a lot of ESG stuff but it comes up more in conversations and due diligence and investors certainly care about it and I'm sure that'll be a growing trend you mentioned values and I think American securities has been the forefront in terms of giving back to the communities it's been a one of your hallmark values for the firm peak a look about the genesis of that and what it means to your firm well we have we've had a mission and values code for a long time in the mission is to generate great returns for investors by investing in great companies and helping the existing management teams make them better and then the values below our partnership long-term and also giving back we think it's very important as people you know your firm other firms to make our communities a better place and so we have service days both here in New York and in Shanghai China where we actually go into community work with various charities as a firm we have a matching grant program and outright grant program for our colleagues to give money and we have a Dacian which also gives money away and we think that is not inconsistent with with our mission which to generate great returns for investors but also part of our obligations as citizens of the world great well thank you Michael appreciate your time today and enjoy the rest of the conference thanks mark appreciate your having me thanks you
Thanks Liza your participation is very much appreciated
- Millard Supplee
About the author
I've studied analytic number theory at Rockhurst University in Kansas City and I am an expert in communication design. I usually feel crazy. My previous job was animal scientist I held this position for 30 years, I love talking about practical jokes and zebra hunting. Huge fan of Gary Sinise I practice softball and collect books and periodicals.
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