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Capital Allocators – Inside the Institutional Investment Industry

Frank Brosens – Culture and Partnership at Taconic Capital (Capital Allocators, EP.282)

Capital Allocators – Inside the Institutional Investment Industry

Ted Seides – Allocator and Asset Management Expert

Business, Investing

4.7841 Ratings

🗓️ 21 November 2022

⏱️ 57 minutes

🧾️ Download transcript

Summary

Frank Brosens is a co-founder of Taconic Capital, an $8 billion event-driven, multi-strategy hedge fund founded in 1999. Frank started his career at Goldman Sachs, where he joined and later ran Bob Rubin's legendary risk arbitrage desk. That group became one of the top breeding grounds for hedge fund founders, including among its ranks Tom Steyer at Farallon, Richard Perry at Perry Partners, Danny Och at Och-Ziff Capital, Eddie Lampert at ESL, Eric Mindich at Eton Park, and Dinakar Singh at TPG-Axon.

Our conversation covers Frank's path to the Goldman risk arb desk, the culture that made it a success, and his eventual decision to leave the firm. We then discuss the founding of Taconic, its partnership and investment philosophy, and its approach to risk management, capital allocation, and the pursuit of opportunities. Along the way, Frank highlights examples that demonstrate the benefits of a carefully aligned culture for teammates and clients across organizational structure, portfolio management, and compensation.

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Transcript

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0:00.0

Capital Allocators is brought to you by Ten East, an investment platform for sophisticated investors to access private markets.

0:10.5

Ten East brings benefits of having your own family office without the cost and headaches of doing so.

0:16.8

It's founded and led by Michael LaFelle, former deputy executive managing member of Davidson Kempner.

0:24.2

Michael and his investment team offer members the opportunity to co-invest by offering at their

0:29.1

discretion. Michael and his team source, diligence, and commit material personal capital to each

0:35.3

investment. The opportunities shared on the Ten East platform

0:38.9

offer exposure to private credit, real estate, niche venture and private equity, and other

0:44.5

idiosyncratic investments that typically aren't available through traditional channels.

0:49.2

The principles have over a decade track record of investing in these types of exposures

0:53.5

across more than 350

0:55.7

transactions. Post-investment, the Tennis team conducts ongoing monitoring and reporting,

1:01.8

just as you'd expect from an institutional investment organization. I've known Michael for about a

1:07.0

decade, and after becoming impressed by the quality of 10 East offerings, its research

1:11.6

process, and high-quality investment team, I became an advisor to the organization, an investor

1:17.1

in multiple offerings. You can learn more and join me as a member at 10-east.com. That's the number 10,

1:25.4

east.co.O.

1:33.4

Capital Allocators is also brought to you by SRS Aquium.

1:37.2

Want to make sure your M&A processes aren't stuck in the past?

1:43.6

How about partnering with a company that's been defining the future of dealmaking for nearly two decades instead?

1:46.0

When it comes to M&A innovation,

1:52.7

SRS Aquium has reshaped the way deals get done more than anyone else, streamlining processes for maximum efficiency and minimum headaches. Professional shareholder representation, online

1:59.2

M&A payments, digital stockholder solicitation,

...

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