Masters of Private Equity: Warren Hellman, Tully Friedman and Joseph Rice

In 2010, Robert Finkel wrote the book The Masters of Private Equity and Venture Capital: Management Lessons from the Pioneers of Private InvestingIn this episode, I explore the ideas, decisions, successes, and failures of two people who helped define modern private equity: Joseph Rice, co-founder of Clayton, Dubilier & Rice, and Warren Hellman, co-founder of Hellman & Friedman.TIMESTAMPS0:00 The Masters of Private Equity2:15 Private equity is more than buying and selling companies5:42 What separates the best private equity investors7:14 Joseph Rice: Building Clayton, Dubilier & Rice10:13 Jack Welch’s advice during the 2008 crisis: “Hammer them”15:23 The failed deal that changed how Rice invested forever19:28 Lexmark: Turning an IBM division into an entrepreneurial company22:06 Kinko’s, a total loss, and the danger of believing you can do anything26:20 Joseph Rice’s five lessons from 40+ years in private equity31:03 Warren Hellman: Building Hellman & Friedman32:23 “This time is different” — the investing lesson Hellman never forgot36:35 Every investment is guilty until proven innocent39:51 Think like an owner, not an employee42:38 Levi Strauss and the deal that put Hellman & Friedman on the map45:34 Why a great security can still be a terrible investment49:08 Warren Hellman’s five rules for investingThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.