Kurt Leedy and Kyle Coots - The Three Methods to Grow Capital - Ep.134
My guests on this episode are Kurt Leedy and Kyle Coots, co-founders and managing directors at Miramar Equity Partners. Kurt and Kyle have an interesting vantage point in the search world being backed by a family office with an agnostic time horizon, allowing them to invest in the widest set of opportunities in search and parallel spaces. \nOur episode focuses on a concept they developed they call the three ways to make money, those being classic LBO, M&A-driven strategies, and organic growth. We dive into the characteristics of each along with a few examples from their portfolio. \nWe also touch on how the intersection of two or more methods can create exponential outcomes. Finally, we discuss a few theses they find interesting in healthcare and software and how they develop a thesis on an industry.\nListen weekly and follow the show on Apple Podcasts, Spotify, Google Podcasts, Stitcher, Breaker, and TuneIn.\n\nSpecial thanks to our sponsor: Oakbourne Advisors\n\nLinks:\nMiramar Equity Partners\nKurt Leedy on LinkedIn\nKyle Coots on LinkedIn\nWill Thorndike with Patrick O'Shaughnessy \nBPD Zenith\nFlint Group\nSwoogo\nEncore Infusion\nConstellation\nBusiness Breakdowns - The NFL\n\nTime Codes:\n(3:36) - How did your backgrounds help form this concept of \u201cThe three methods to make money\u201d?\n(9:18) - Do you have a model of investing that resonates most with what you\u2019re looking to accomplish?\n(12:24) - Have Search CEO\u2019s been primarily focused on one of these three buckets in your experience?\n(15:51) - What are some characteristics & examples you\u2019ve seen of the Classic LBO investing model?\n(18:36)- What questions or risks are you optimizing for when considering LBO?\n(22:13) - What are some factors that have correlated with a high retention rate in companies you\u2019ve observed?\n(24:23) - Can you walk us through how you divide M&A Driven Strategies into its two subcategories: Roll-Up and Transformative?\n(33:46) - Is there some value in having M&A experience for a CEO & their company?\n(35:42) - Why do you think there is such increased popularity in the M&A strategy within Search?\n(39:00) - Which companies and characteristics fall under the Organic Growth Model?\n(46:00) - What are some examples of companies who have combined these methods and found success?\n(51:10) - What are your thoughts on Software businesses and any opportunities in that space?\n(54:40) - What are some ways you develop and validate different theses?\n(1:01:19) - What strongly held belief have you changed your mind on?\n(1:03:32) - What\u2019s the best business you\u2019ve ever seen?