20VC: What it Takes to be Top 1% in Private Equity | Why the Best Companies are Talent Systems | Three Traits Required to Succeed in Private Equity | Marriage, Fatherhood and Sports Team Owner, What it Takes to Do It All, with Justin Ishbia, Founder @ Sho
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
The Twenty Minute VC
4.4 • 637 Ratings
🗓️ 26 February 2024
⏱️ 81 minutes
🧾️ Download transcript
Summary
Justin is the Founder and Managing Partner of one of the nation’s best-performing private equity firms, Shore Capital Partners (“Shore”). Since the firm’s inception in 2009, Shore has grown from 4 to over 140 team members managing over $6 billion in AUM, representing 900+ acquired companies and more than 33,000 employees. Shore is also one of the most active private equity firm in the world by deal volume according to PitchBook while continuing to achieve return profiles that rank Shore among the top 1% of private equity firms. Justin is an avid sports fan/investor and is the Alternate Governor for the Phoenix Suns (NBA), Phoenix Mercury (WNBA) and Nashville SC (MLS).
In Today's Episode with Justin Ishbia:
1. From Law Student to Founding Shore Capital:
- How did seeing Justin's father operate impact how he thinks about building Shore today?
- What does he know now that he wishes he had known when he started Shore?
- How important a role does luck play in success? How has his mindset changed on this?
2. How to Make Top 1% PE Returns:
- Why does Justin see private equity done well like "using a flashlight in a dark room"?
- What are the top 3 elements that Justin looks for in all acquisitions they make at Shore?
- When did Justin think there was an advantage of scale/network effect but was proved wrong?
- How does Justin think about downside protection and risk mitigation?
- Why does Justin like to back and invest in first time founders more than any other type?
3. Building World-Class Investing Teams:
- Why does Justin believe the best companies are talent systems?
- How does Justin structure the talent system at Shore to ensure consistent incredible talent?
- What does Justin believe are the three traits required to win in private equity?
- What question does Justin ask all potential CEOs he hires for acquired companies?
- What has Justin learned is the single clearest sign of the top .1% talent?
4. Justin Ishbia: The Family Man and Husband:
- What metric does Justin use to track whether he is being a good and present father?
- Is it possible to be top 1% and have balance with a wife and family?
- What does "great fatherhood" mean to Justin? How has his thoughts on this changed?
- How does Justin think about bringing kids up in a world of immense privilege and ensuring they remain ground and ambitious?
Transcript
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| 0:00.0 | I'd be private equity in the following way. We're a huge flashlight. They walk into a room that may be dark. I'm shining the light everywhere in the corners and the crevices. What I found is those who are really good at their job are like, shine it here. Like, look at me. No one's recognized me what I've been doing for the last year. I'm performing at a really high level. They're super excited. And those who are maybe less than good at their job |
| 0:21.4 | curl up and kind of hide from that light. And we try and shine a light everywhere. And so when we eventually exit our investment, the lights on the room. And everyone can see everything. Transparency and data. This is 20VC with me, Harry Stebbings. And I'm so excited for this guest today. Now, joining me in the hot seat, we have Justin Isbier. |
| 0:38.1 | Justin is the founder and managing partner of one of the nation's best-performing private equity firms, |
| 0:43.3 | Shaw Capital Partners. |
| 0:44.3 | Now, since Shaw's inception in 2009, they have grown from four to over 140 team members, |
| 0:51.0 | managing over $6 billion in AUM, representing over 900 acquired companies and more than |
| 0:56.5 | 33,000 employees, sure is also one of the most active private equity firms, whilst also remaining |
| 1:02.7 | among the top 1% of private equity firms. This was an incredible, broad and wide-ranging discussion |
| 1:08.5 | on everything from top 1% PE returns to being a great |
| 1:12.1 | father and husband. But before we dive into the show today, Hive is the marketplace for private |
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... |
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