64 - How Permanent Equity Built a 9 Figure, Debt-Free Portfolio with Mark Brooks

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨Join me, Nik (https://x.com/CoFoundersNik), as I talk with Mark Brooks (https://x.com/markbrooks), the Managing Director of Permanent Equity, a unique investment fund founded by Brent Beshore. With 16 businesses and 900 employees, Permanent Equity uses a 30-year fund model and focuses on debt-free acquisitions, which goes against the grain in private equity. We discuss how they identify unique metrics for each business, incentivize operators without using EBITDA, and manage post-sale relationships. Questions this Episode Answers:What is Permanent Equity’s unique 30-year fund model?Why does Permanent Equity pursue debt-free acquisitions?How do they identify key metrics for each business?Why don’t they incentivize operators based on EBITDA?How do they approach post-sale seller relationships?___________________________Love it or hate it, I'd love your feedback.Please fill out this brief survey with your opinion or send me an email at [email protected] with your thoughts.___________________________Spotify: https://tinyurl.com/5avyu98yApple: https://tinyurl.com/bdxbr284YouTube: https://tinyurl.com/nikonomicsYT___________________________This week we covered:00:00 Highlights00:19 Welcome to Nickonomics01:15 Interview with Mark Brooks02:00 Understanding Traditional Private Equity05:27 Permanent Equity's Unique Approach07:44 Incentive Alignment and Cash Flow08:44 Newsletter Promotion09:14 Challenges with Incentive Alignment11:04 Structuring Purchases and Keeping Owners Onboard14:38 Value Proposition and Legacy Considerations17:29 Operational Support and Back Office Functions23:02 Metrics and Day-to-Day Operations25:59 Understanding Leverage Points in Business26:40 Key Business Metrics Categories27:45 Dogmatic vs. Flexible Business Approaches28:24 Industry-Specific Metrics and Opinions29:42 Tracking Metrics and Reporting31:17 Managing a Portfolio of Businesses33:19 Delegation and Business Growth39:33 Characteristics of Successful Companies45:06 Advice for Entrepreneurs and Personal Reflections