MiB: David Conrod on raising PE capital

January 29, 2022
9:00 am

Justice News Flash Report

MiB: David Conrod on raising PE capital

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This week, we have David Conrod, who is the co-founder and CEO Focus Private Capital Group. The firm raises capital for private equity, credit, real estate, real estate and direct transactions in developed and emerging markets. Prior to co-founding FocusPoint, Conrod was a senior managing director at Guggenheim Partners, where he built a private equity group that raised more than $7 billion in capital allocations for general partners outside the firm.

We discussed how private equity differs from venture capital, where private equity is not betting on the moon but using financial engineering in areas that are too small for public markets but too small for commercial banks Buy a solid income stream. He explains how successor funds work in the private equity space, with additional capital flowing into new but similar investments and expanding the pool of assets in another investment vehicle (rather than going into the same assets in a subsequent round).

He explains how music catalogues and royalties and movie and TV royalties can become investable assets; both are described as “self-liquidating mezzanine debt, in a zero-interest-rate environment, with low-to-mid teen returns to investors.” Recent Artists Catalog sales include Pink Floyd, Bob Dylan, Bruce Springsteen, The Beach Boys, Neil Young, Tina Turner, Stevie Nicks, Ryan Tedder, ZZ Top, John Legend and more. Conrod has assisted with the purchase of multiple music catalogs as well as film and TV sales.

his favorite list book here; our conversation transcript is available here on Monday.

You can stream and download our full conversations, including podcast add-ons iTunes, Spotify, stapler, Google, Bloomberg, and Akaster. All early podcasts on your favorite podcast host are available find here.

Be sure to check out our Master of Business next week with Rebecca Patterson, Director of Investment Research Bridgewater Society, the world’s largest hedge fund, and she is also a member of the firm’s investment committee. Previously, she was chief investment officer at Bessemer Trust, managing $85 billion in client assets.