Alex Sloane & Matt Perelman – Buy-and-Build Playbook in the Core Economy at GSP (EP.499)
Episode publishedPodcast: Capital Allocators – Inside th...Capital Allocators – Inside the Institutional Investment Industry
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Being small is scary in a roll up and it's true because if you take any one of these consolidations that we're involved with and you pick one of the underlying assets, there are fundamental micro market risk to that asset. Perhaps they have one customer that makes up 20% of the revenue or if it's a business that's dependent on traffic patterns or whether you have the micro market risks of traffic patterns or whether. Through scale and diversification of those revenue streams, those numbers on a percentage basis and on a overall risk basis start to come down. So that 25% customer in the scheme
I'm Ted Seides, and this is Capital Allocators. My guests on today's show are Alex Sloan and Matt Perlman, cofounders of Garnett Station Partners, a $4,000,000,000 private equity firm focused on buy and build investments in founder led core economy businesses. Alex and Matt are lifelong friends who took an unconventional path out of business school, acquiring a 23 unit Burger King franchise in North Carolina that they scaled to 1,100 locations before selling it back to the franchisor. That operating experience became the foundation for their investment firm. Our conversation traces that evolut
Thank you, Ted.
Thanks for having us.
Very excited to be here.
I think with you guys, we need to go all the way back to your upbringing.
Matt and I grew up together. We've been best friends since we were little kids. We grew up three blocks from each other. We started our careers, I was investment banking at Goldman, I was at Citi, I was at Apollo, Matt was at Catterton doing private equity there. We went to business school together, planning to go back to those jobs after graduation. But while we were there, we developed a thesis around franchise consolidation, except every franchise brand rejected us as franchisees, except for Burger King, I know you did an episode with Dan Schwartz and Alex Behring from three gs, they talked
I wanna pick through some of that. How does being best friends growing up translate into working together?
I think it's a asset from the standpoint of we've known each other for thirty years.
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