As Allocated

Institutional LP in private & public markets. Field notes from meetings with GPs & operators.

[As Allocated @AsAllocated]

“How did you go bankrupt?” Bill asked.
“Two ways,” Mike replied. “Gradually, and then suddenly.”— Ernest Hemingway, The Sun Also Rises (1926)

[As Allocated @AsAllocated]

@endowment_eddie For spinouts managers, the same applies to former colleagues. I can think of several times someone from my team knew the former colleagues.

[As Allocated @AsAllocated]

@BelkReport This is exactly the type of thing Claude could do in about 10 seconds

[As Allocated @AsAllocated]

@fahdananta Very nice of you, farming is often a tough low cost of capital business

[As Allocated @AsAllocated]

@cashrulesNC Lie flat is sometimes like buying an extra day of your trip. The jet lag for long haul flights is real

[As Allocated @AsAllocated]

Excellent advice for new interns and analysts

[High Yield Harry @HighyieldHarry]

Intern season kicks off tomorrow for parts of Wall Street, so want to spend a moment refreshing my annual advice for Students.

1) Avoid AI brain drain and social media brainrot like your career depends on it. Because it really does. I wasn't saying this advice in 2022, but with the rise of AI, it is either a tool that propels you or a crutch that cripples your ability to do the basics. Overreliance and the inability to think critically & build models on ur own (just to make sure you can) will kneecap you. You need to know the ins & outs and know how to reach original opinions before letting AI boost you.

2) Speed, Acting with Urgency, and Responsiveness is how you differentiate: I've interviewed a lot of Interns and the key differentiation is the most successful ones are able to act with urgency vs. taking their sweet time. Overcommunicate by saying "Will do”, “sounds good” , or “On it” constantly so we know the message has been recognized. In our interview processes, we test for making sure interns can respond to an email in a normal amount of a time. A shocking amount of them fail at this and are removed from our processes.

3) Don't make the same mistake twice:  Easier said than done, but the people evaluating you are keeping tabs on whether you’re smart/teachable. They’ve been trained by this philosophy and are judging you by the same standards. If you make the same mistake twice, then they may perceive that you may not have the ability to retain information, learn from experience, etc.

4) Don't ask questions when it's been answered in an email, a CIM, a powerpoint, etc: You will be given a lot of resources or have something explained to you in an email. You shouldn't ask a question that's already covered. Any question you have should be an expansion or clarification point NOT something already clearly stated. Frankly, if someone makes me have to repeat something that's already in an email or a recent message, then I'm going to get annoyed. As an Associate, the equivalent is asking a Banker or Sponsor a question that's already in the CIM.

5) Don't take a week long vacation during a ten-week internship. You can always vacation before or after your internship. You are trying out for a sports team – you haven’t made the team yet, but you’re getting the chance to make the big leagues. Would you leave the team in the middle of preseason before the roster is finalized? Of course not.

6) Dress the part and look professional: Don't overdress (wearing gucci as an intern), but also don't come in with wrinkled shirts. Make sure your haircut is professional and clean cut.

7) Save a Copy of a File so you don't destroy a Master Document

8) This isn't School - you need a 100% score: I stole this from a video Steve Schwarzman did where he welcomed Blackstone's 2019 Analyst Class in an 8 minute video. I would actually say you don't need "a 100" on the first round of a deck or model. But when we're talking about the finished product, or real world things like wiring money to people, you absolutely need a 100. I think the lesson more so is there are situations where the answer/output is either right or it's wrong - there's no "A-".

9) Don't worry about Work From Home quite yet - make sure you're learning and coming in the office if someone else important is. Also AI is a real danger so you probably have to accept the return to a 5-day in the office world.

10) Proofread constantly: Try different strategies to proofread - this can include reading from beginning to end, end to beginning, speaking out loud, and reading in different formats (like printing the materials out). If allowed, AI is obviously an amazing proofreading tool. I would argue typos shouldn't really exist in workplace setting given you can have AI check it.

11) Write everything important down and keep a notepad on you.

12) Predict demands: This is a good way to stay busy and show you can take initiative. Just don't overstep. Your perceived intelligence and ability to learn comes from your ability to predict demands.

13) Network with everyone, leave no stone unturned, respect everyone: Converse with others, be friendly, say hello, and be looking to learn from different types of people. Be nice to admins and the middle and back office. Don't get "front office" ego, there is no ego here, you are all part of the same team.

14) Show this is where you want to work (even if it's not true): If there's rumors you're using the internship as a stepping stone, you will be toast - give it your best efforts and have a positive attitude about the work!

15) Be careful about how much you drink during happy hours. Use your best judgment.

16) Don't beat yourself over mistakes or if you don't get an offer. It's just a job, not your life. You have a long career ahead of you. Learn from experience.

17) Follow my resources to learn more about finance: I'm dedicated to helping financial professionals, through my compensation and insights platform @Buyside_Hub and my newsletters @WallStRollup and @HYHNewsletter - I've got your back. Links for those below.

[As Allocated @AsAllocated]

@TheIcahnist A lot of infra is a complex operating business attached to a collection of assets trading at a 4 cap (i.e. Paying for future growth and probably losing money if the growth doesn't materialize due to more expensive debt)

Mexico could shut this thing down any time.

[As Allocated @AsAllocated]

@Liathetrader I was talking to an Italian structured capital GP who has multiple Italian portfolio companies without any Italian revenue anynore

[As Allocated @AsAllocated]

@Liathetrader When I do intro calls with European VCs it's a lot of compliance and regulatory tech

[As Allocated @AsAllocated]

@compliantvc Is this a parody account?

[As Allocated @AsAllocated]

@ClintFiore People pay more for businesses that tiny? It sounds more like buying a job since it likely wouldn't support a management structure

[As Allocated @AsAllocated]

@justhomesgroup @grok, what has household formation looked like in the United States over the past several years?

[As Allocated @AsAllocated]

@peterkto This is how we felt in 2021 going in to 2022

[As Allocated @AsAllocated]

@MultifamilyRob It's good to be memorable. All the meetings blend together sometimes

[As Allocated @AsAllocated]

At what point do smaller shipping companies face financial ruin and just send their crews across?

[As Allocated @AsAllocated]

I'm always reading something and always feel I need to power through to the end

[Naval @naval]

If it’s not one of the best books you’ve ever read, don’t read it.

[As Allocated @AsAllocated]

Intro call best practice is to provide materials before an initial call. Surprising how many GPs don't do this.

[As Allocated @AsAllocated]

@ChrisRamsey60 As long as it wasn't office in 2019 or anything in 2021

[As Allocated @AsAllocated]

@moseskagan @grok, why are policies driven by basic economics so unpopular for housing?

[As Allocated @AsAllocated]

@tickerade @HeroDividend There's Costcos all over the place in Mexico

[As Allocated @AsAllocated]

@CensoredLeak This is what you get with WTI at $100/bbl