Private credit before it was "cool"
“We’ve been doing private credit since before it was cool to call it that." - Hong Kong-based family
Self-Funded Search vs. Independent Sponsors
At Minds Capital we invest equity in deals from both searchers and independent sponsors. Below is an overview of how
Big Tech vs. Innovation
Big Tech (Google, Microsoft, Meta, Apple, Amazon) actually compromise innovation. They don't want to be disrupted. ssrn-4713845Coopting Disruption
Buy vs. Own
There are many businesses that I’d like to own, but I’d never want to buy them.
Dallas Fed Real Estate Conference Notes
Random notes from Real Estate Conference at the Dallas Fed on May 8: • Residential active listings down 35% from 2019.
"Step-up equity"
"Step-up equity." Self-funded searchers use this term erroneously. They claim that if you inject 100% of the equity,
Notarized Signatures
Happy Tuesday morning to all, except those who require notarized signatures.
Ranking Metro Areas
A few months ago, Skye Hersh and I ranked all the metropolitan areas with >1m people by recent population
Yearly Headwinds
Recent history of operational headwinds: 2020: COVID 2021: Supply chain 2022: Inflation 2023: Labor shortage Still trying to figure out
Always disclose yellow flags ⚠️
When creating an investment memo, you might be tempted to think that not discussing risks (yellow flags) makes for a
Tax code = Country's Values
A country's tax code is a representation of its priorities. The US prioritizes entrepreneurs, real estate owners, and
🚩⚠️✅ 3 DD Categories
When evaluating a deal, I categorize my findings in 3: 🚩 Red flags: Deal killers. ⚠️ Yellow flags: Every deal has them,
SaaS diligence
How to value SaaS companies, from Signal Hill in 2016. We're diligencing a SaaS deal right now, and
Underwhelming macro data
Record-high asset prices should be accompanied by strong economic data and trends. However, the data continues to underwhelm: • April job
PG vs. Skin in the game
Yes, a personal guarantee qualifies as “skin in the game.” It will keep the searcher engaged. However, “skin in the
MVP 2024 = American Trifecta
The MVP of the global economy so far in 2024 is the American trifecta (consumer, worker, and investor). The American
Visiting Eco Plumbers
Fantastic day in Columbus where my friend, Michael Barnhart, and the absolutely-best-in-class team at Eco Plumbers, Electricians, and HVAC Technicians
Seasonality vs. Cyclicality
People conflate seasonality and cyclicality. They’re different and unrelated. Examples of seasonal businesses: Christmas trees, fireworks, ski slopes, air
$61 aid package to Ukraine
This weekend the US Congress approved a $61B aid package for Ukraine. It isn't hard to understand voices
Rule of 40
Rule of 40 = Healthy & Sustainable Business = Revenue Growth (%) + EBITDA margin (%) = 40% or more Applicable in SaaS
China headwinds
China, recently the world’s economic engine, faces headwinds directly linked to trust-erosive political missteps: #1: In the absence of
The Masters 2024
My first trip to Augusta for the Masters, where I saw my old nextdoor neighbor Scottie Scheffler and “talked hoops”
Negotiating NWC
Negotiating working capital - inventory, receivables, and payables - is often the most contentious part of a deal. Here is
US jobs in 2024
US job numbers continue to surprise, with last week’s report showing 303,000 new jobs in March. Incumbent politicians
