Funds that Won

JC Morales is a seasoned investor and operator in the short-term rental market with a unique interest in the Puerto Rican hospitality game. JC started his career as a kitesurfer but saw the opportunities in beachfront properties.

JC's story is incredible and he gives some amazing insight into how an entrepreneur scales with limited resources.

[00:01:06] Beach apartments and luxury assets.

[00:03:58] The sweet spot of property.

[00:07:09] Making money teaching kitesurfing.

[00:08:39] Creative real estate strategies.

[00:13:12] Short-term rental regulations.

[00:18:16] Incredible returns on short-term rentals.

[00:19:26] Puerto Rico's competitive advantage.

[00:28:03] Tax incentives in Puerto Rico.

[00:29:05] JC's Personal Background.

[00:31:12] Entrepreneurship at a young age.

[00:32:29] Living the new rich.

[00:42:26] Education without implementation is insanity.

[00:43:15] Primary residence and nomadic lifestyle.

In this episode, Lincoln interviews Jeff Mendez, an experienced investor, operator, and board member. They discuss Jeff's background in the direct-to-home space and his passion for real estate investing. Jeff shares his first investment experiences and why he believes real estate is a great investment option. Major takeaway? Build excellent systems. Overall, Jeff shares some incredibly valuable insights on building things that last.

[00:02:29] Investing in real estate.

[00:03:28] Mobile home parks

[00:08:06] Reasons for not liking funds.

[00:10:10] Syndication versus fund structure.

[00:15:21] The current environment affecting business.

[00:18:15] Return metrics in real estate.

[00:22:24] What makes a fund win?

[00:25:21] Being responsive to investors.

[00:29:10] Legal audits and protection.

[00:32:38] The importance of cleanliness.

[00:35:58] VC investment strategies.

[00:38:05] Exhilarating real estate deals.

[00:41:33] Approaching prospective board members.

[00:45:01] Creating value and avoiding pitfalls.

[00:49:43] Value creation over money.

[00:53:12] Work-life harmony.

[00:56:03] Pet peeves in life.

[00:58:24] First generation hustle.

We have a legend on the show today. John Pennington Jr. John shares his insights from starting over 14 businesses to running a dec-billion dollar family of funds. He shares some incredible nuggets of wisdom about finding the right partners, making the right plays in shifting markets, and why funds are the best way to scale in business. We get into the weeds and talk big picture, you don't want to miss this episode.

Learn more about investment funds on our Youtube channel: https://www.youtube.com/channel/UC1_NBRSd-yIX6tyg31RzCew

[00:01:03] Starting a hedge fund.

[00:06:19] Transition to fund model.

[00:07:19] Losing investors during transition.

[00:10:13] Predicting the Asian debt crisis.

[00:14:48] Becoming an institutional grade firm.

[00:17:18] Capital raising strategies.

[00:21:12] Pursuing institutional money.

[00:25:37] Starting a business selling jeans.

[00:28:29] The U.S. dollar as a product.

[00:32:21] Going for a supersized idea.

[00:34:00] Starting a big idea.

[00:38:30] Building a strong team.

[00:41:21] Choosing good partners.

[00:45:25] The power of a fund.

[00:47:26] Clawback in partnerships.

[00:53:46] The best place for entrepreneurs.

[00:54:08] Fear of being old and poor.

[00:57:33] Overcoming obstacles and hard work.

[01:01:08] Wasting Opportunities in America.

[01:04:27] Educational purposes and legal advice.

From fleeing Vietnam and China with her family to building a $300M energy trading hedge fund, Nancy Morales is a force to be reckoned with.

Lincoln and Nancy discuss energy trading, coming from remarkable beginnings, what makes a successful fund manager, and the unique perspective she brings to the industry.

[00:01:32] Taking a Risk Together.

[00:04:31] Every trade was do or die.

[00:10:51] Trading electricity markets.

[00:12:03] Leaving Vietnam for a better future.

[00:17:00] Three different countries.

[00:20:25] Female perspective and growth.

[00:24:45] Traders' high earnings and structure.

[00:29:22] Puerto Rico investment ventures.

[00:34:09] Giving back.

[00:36:55] Securities discussed on this podcast.

In this episode of Funds That Won, Lincoln interviews Nic DeAngelo, President of Saint Investment Group. Nick shares the story of how Saint Investment Group started as an acquisition-focused business and later expanded to include asset management and capital raising. With over $200 million in assets under management and a successful track record of exiting projects, Nick discusses the syndication side of their business. He also highlights the shift towards a fixed income approach and the package of real estate assets they have put together. Tune in to learn more about the growth and strategies of Saint Investment Group.

[00:01:17] Syndication and project performance.

[00:06:19] Real estate acquisitions and underwriting.

[00:07:33] Residential mortgage market exploration.

[00:10:51] Non-performing debt in banks.

[00:16:35] Defense against risk-free rate.

[00:19:05] Housing market misconceptions.

[00:23:40] Starting a fund.

[00:26:00] St. Investment Group's future.

[00:30:51] Industrial growth and scalability.

[00:33:08] Finding leverage points and buttons.

[00:38:05] Adding value through networking.

[00:40:13] Getting your foot in the door.

[00:43:00] Balancing work and family.

[00:46:29] Efficient calendar management.

[00:49:37] Communication and teamwork in business.

In this episode of Funds That Won, Lincoln interviews Blake, an Managing Partner at Pelion. Blake shares the elevator pitch for Pelion, a renowned investment fund that focuses on early-stage software companies. With over $2 billion in assets under management, Pelion has experienced tremendous growth over the past two decades. Blake also discusses his journey with the firm. Tune in to learn more about the success story of Pelion and their investment strategies.

Blake Modersitzki is a managing partner at Pelion Venture Partners. He has served on several public and privately held company boards. He was managing director of Novell Ventures and vice president of corporate development for Novell. Blake previously held global sales and marketing positions at WordPerfect. He earned his bachelor's degree in economics from BYU. Blake and Sandy have three children.

[00:01:36] Investment success.

[00:05:01] Decision-making and hiring process.

[00:07:23] Decision-making process and unanimous votes.

[00:12:46] Shared assets among the funds.

[00:16:06] Taking companies to IPO.

[00:19:22] Entrepreneurs changing the world.

[00:24:07] Christmas cards and CEOs.

[00:27:06] Group think and Theranos.

[00:30:46] Fund size and investment strategy.

[00:35:11] Get rich slow.

[00:40:26] Watching movies while exercising.

[00:42:58] Educational purposes and financial advice.

In this episode, we dive into the fascinating journey of KKR, one of the largest private equity firms in the world. Founded in the 1970s by Jerome Kohlberg, Henry Kravis, and George Roberts, KKR has grown to manage an impressive $488 billion across various strategies. We explore their initial strategies, including their pioneering role in the leveraged buyout (LBO). Join us as we uncover the secrets behind their success and how they built their empire from humble beginnings with just $120,000.

[00:02:09] LBO pioneers in private equity.

[00:06:54] The buyout of RJR Nabisco.

[00:09:14] Bidding war for RJR Nabisco.

[00:13:29] Infrastructure assets.

[00:17:57] RJR Nabisco acquisition.

In this episode, Bryce, the co-founder of Summit Global Investments, joins Lincoln to discuss the firm's background and investment strategies. Bryce shares that Summit Global is a registered investment advisory firm managing $2 billion of clients' assets. He mentions working with a team of advisors and various fund structures. The conversation dives into the firm's inception during the market crisis in 2007-2008 and how Bryce and his partner developed their investment approach. Bryce is a member of the Fund Launch Whale Group, a group of fund managers with over $10M AUM. Bruce is an incredible member of the Fund Launch community.

[00:01:03] Starting the company idea.

[00:05:21] The size of fixed income market.

[00:09:07] Clientele base breakdown.

[00:12:05] Fragmentation in investment advisory business.

[00:16:24] Growing independent advisory firms.

[00:20:09] Starting a new firm.

[00:25:48] What makes a fund win?

[00:28:14] Following specific investment rules.

[00:33:20] Starting a public product.

[00:37:22] Growth objectives for Summit Global.

[00:41:10] Focusing on revenue generating items.

[00:45:49] The Fed's next move.

[00:48:05] Follow-up as a pet peeve

In this episode of Funds That Won, Lincoln breaks down the Carlyle Group, a prominent private equity firm with $385 billion under management. We delve into the backgrounds of the three founders - David Rubenstein, William Conway, and Daniel Daniello - who came from diverse industries such as politics, law, venture capital, and finance. Despite the unavoidable headwinds of business, they managed to build a multi-billion dollar investment empire. Tune in to learn more about their strategies and the success of the Carlyle Group.

[00:01:01] Founding of Carlyle Group.

[00:04:28] Private credit opportunities.

[00:09:06] Government contracts and political influence.

[00:11:49] Behavioral alpha in investing.

In this episode of Funds That Won, David Frazier from the Frazier Group shares the story behind their success as a family office turned venture capital fund.. He discusses the challenges faced by angel investors and the importance of keeping track records. David highlights their approach of "shooting fish in a barrel, not throwing darts" as their core mantra for investment strategies.

[00:02:01] Shooting fish in a barrel.

[00:06:23] Fund structure and LP expectations.

[00:09:00] Piling money into a company.

[00:16:38] Valuing companies in secondaries.

[00:20:11] QSBS tax treatment.

[00:23:55] Finding true competitive moats.

[00:27:10] Build relationships with smart people.

[00:32:07] California deals and personal connections.

[00:37:17] The current state of VC market.

[00:40:05] The promise of AI.

[00:44:09] Real estate investment committee.

[00:48:29] Excessive posturing in business.

[00:52:22] Fund Launch Partners appreciation.