Working Capital Conversations

Working Capital Conversations

By Chris RibackBusinessManagement
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Working Capital Conversations episodes

  • David Novak: Views from World Economic Forum in Davos

    The World Economic Forum held its annual meeting recently in the little Swiss ski town of Davos. There was plenty of snow this year, but no one focused much on hitting the slopes. This was one of the most anticipated Davos gatherings in years.

    The reasons are obvious: There’s a lot going on in the world today and plenty of questions:

    • How are businesses and countries balancing long-term globalization trends with the more recent populist pressures?
  • What do new technology impacts – particularly AI – mean for industry, employment, competition, and innovation.
  • And then there are the regional issues, from Europe to Asia to, of course, U.S. President Donald Trump’s highly-publicized visit.
  • What were the reactions – and more importantly, what should business leaders globally make sure to understand? To find out, we spoke with David Novak, a partner at Clayton, Dubilier & Rice and based in London.

    20 min
  • Josh Lerner on Private Equity, Employment, and Management

    It’s an age old question across all types of investing: can you have it all?

    In other words, can investors get the twin benefits of doing well and doing good? For the various private equity participants, the question has become more urgent over the last several years, particularly around ESG, Environmental, Social and Governance issues. As requirements around doing good increase from politicians, LPs, employees, even GPs, the need for GPs and LPs to deliver it all continues to rise. Put simply, what are the broad, social consequences of private equity investments?

    22 min
  • Inside the Mobile Economy with Anindya Ghose
    What happens when we tap or swipe on your phone? According to industry estimates: Only some 3 and a half trillion dollars of economic value added – about 4.5% of global GDP. Welcome to the mobile economy.

    And if you want to understand this massive and growing engine of global economic growth, there is perhaps no better tour guide than Anindya Ghose.

    Anindya is the Heinz Riehl Chair Professor of Business at New York University's Leonard N. Stern School of Business. He is also the author of the important and engaging new book, Tap: Unlocking the Mobile Economy.

    But after talking with Anindya, if I were to retitle his book, I’d likely make it: The power of a curious mind. Since beginning his studies and research, Anindya has focused relentlessly on the mobile economy – on understanding what he calls “the two-way exchange” that benefits both customers and business.

    Through research, case studies, and a distinct sense of humanness and humility, Ghose identifies nine forces that shape consumer behavior – time, crowdedness, trajectory, weather, and more – and he examines how they work individually and together. In his own words, Ghose “highlights the true influence mobile wields over shoppers, the behavioral and economic motivations behind that influence, and the lucrative opportunities it represents.”

    30 min
  • How Family Firms Ensure Long-Term Value Creation with Claudia Zeisberger of INSEAD
    The question seems simple: How Can Family Firms Ensure Long-Term Value Creation?

    But as a new report – based on interviews 123 Asia-based family firms and 14 private equity professionals – shows, the answer may be more complicated.

    The report is titled “The Institutionalization of Family Firms,” and it covers a significant driver of the global economy. As the study notes: “As family firms account for 70% of GDP in the global economy and 60% of global employment, the importance of long-term value creation extends beyond individual families – it is among the main drivers of economic growth and business innovation, as well as livelihoods.”

    To understand the study – and the lessons it reveals – I spoke with the lead author, Claudia Zeisberger. Zeisberger is the Senior Affiliate Professor of Decision Sciences and Entrepreneurship & Family Enterprise at INSEAD, as well as Founder and Academic Director of the school’s private equity center. She is also co-author of the two recently published books: Mastering Private Equity & the accompanying case studies Private Equity in Action.

    Among the topics we discussed: the so-called “Proficiency Gap” around Corporate Governance & Leadership; Access to Capital; Organizational Design; and Growth Capabilities. We also discussed the role private equity can play in helping institutionalize a family firm and unlock value.
    31 min
  • Estimating the Size of the App Economy with Morgan Reed
    How important – how big and growing – is the App Economy? It’s not just the economic value, estimated at nearly $150B a year. The App Economy has added some 110K software jobs to the U.S. workforce, with 83 percent of those located outside of Silicon Valley.

    But how will this growth continue? How can the app economy extend beyond social media and games? How will it balance a reliance on Big and personal data with increasing calls to protect individual privacy? And what about the promise of artificial intelligence and the peril of cyber security?

    Morgan Reed is President of ACT/The App Association, which represents more than 5,000 app companies and information technology firms in the mobile economy. The organization advocates for an environment that inspires and rewards innovation while providing resources to help its members leverage their intellectual assets to raise capital, create jobs, and continue innovating

    Morgan – and the App Association – sit at the intersection of just about everything interesting that’s happening in the tech and business world today – mobile, cloud, data… and as Morgan points out, given new technologies like AI and the Internet of Things, it’s all only going to speed up exponentially from here.
    30 min
  • What is Private Equity? - Claudia Zeisberger of INSEAD

    For years, Claudia Zeisberger has found herself being asked what might seem like a straightforward question: What is Private Equity.


    It also might seem like a surprising question, given that global private equity assets under management run at about $2.5 trillion. It’s not like we’re talking about some hidden asset class.

    But the question came frequently and in different forms – sometimes about doing PE deals, other times about managing PE investments, still others about Fund Management and the GP-LP Relationship.

    So over the years, Zeisberger – who is the Senior Affiliate Professor of Decision Sciences and Entrepreneurship & Family Enterprise at INSEAD, as well as Founder and Academic Director of the school’s private equity center – would write 2-3 page primers on the various topics and hand them out.

    Now, Zeisberger has taken those primers and added original insights from some of the leading private equity players globally and co-authored two books: Mastering Private Equity & the accompanying case studies Private Equity in Action.

    Of course, being based in Singapore and continually on a plane – I caught up with her in Hong Kong – Zeisberger has a unique view not only into private equity’s history, but also current trends.

    So what is private equity and what’s next for this mammoth asset class? That’s what we discussed…

    35 min
  • Performance and persistence in private equity -- Josh Lerner, Harvard Business School
    Conventional wisdom in private equity has often gone like this: Performance persists across funds for the same partnership.

    But the view over the last years is mixed. One 2014 study found that post-2000, there was “little evidence of persistence for buyout funds, except at the lower end of the performance distribution.”

    The question was addressed again recently at A Roundtable Sponsored by the Notre Dame Institute for Global Investing and the Private Capital Research Institute. Here a group of limited partners, academics and general partners met to share their thoughts on performance and persistence in private equity investments.

    Their conclusion: “the once robust persistence of performance across buyout funds has weakened, along the historical outperformance of private equity relative to the private markets.”

    But what does this finding mean in terms of various important inputs, factors like: approaches employed in selecting fund managers, factors influencing performance in the current environment, industry trends and performance benchmarks, comparisons between venture and buyout investing, alignment issues, and the importance of culture?

    I asked Dr. Josh Lerner, Chair of the Entrepreneurial Management Unit
and the Schiff Professor of Investment Banking at Harvard Business School. He also serves as Director of the Private Capital Research Institute, a nonprofit devoted to encouraging access to data and research about venture capital and private equity.

    More honors: Josh is Vice-chair of the World Economic Forum’s Global Agenda Council on the Future of Investing and was named one of the 100 most influential people in private equity over the past decade and one of the ten most influential academics in the institutional investing world.
    28 min
  • Performance and persistence in private equity — Josh Lerner, Harvard Business School
    Conventional wisdom in private equity has often gone like this: Performance persists across funds for the same partnership.

    But the view over the last years is mixed. One 2014 study found that post-2000, there was “little evidence of persistence for buyout funds, except at the lower end of the performance distribution.”


    The question was addressed again recently at A Roundtable Sponsored by the Notre Dame Institute for Global Investing and the Private Capital Research Institute. Here a group of limited partners, academics and general partners met to share their thoughts on performance and persistence in private equity investments.

    Their conclusion: “the once robust persistence of performance across buyout funds has weakened, along the historical outperformance of private equity relative to the private markets.”

    But what does this finding mean in terms of various important inputs, factors like: approaches employed in selecting fund managers, factors influencing performance in the current environment, industry trends and performance benchmarks, comparisons between venture and buyout investing, alignment issues, and the importance of culture?

    I asked Dr. Josh Lerner, Chair of the Entrepreneurial Management Unit
and the Schiff Professor of Investment Banking at Harvard Business School. He also serves as Director of the Private Capital Research Institute, a nonprofit devoted to encouraging access to data and research about venture capital and private equity.


    More honors: Josh is Vice-chair of the World Economic Forum’s Global Agenda Council on the Future of Investing and was named one of the 100 most influential people in private equity over the past decade and one of the ten most influential academics in the institutional investing world.
    28 min
  • HowSilicon Valley Farming Startup Addresses Extreme Poverty, Global Food Shortage — John Denniston, Chairman of Shared X

    The problem is challenging and enduring – and to listen to John Denniston, it also just may present the perfect opportunity to both do good and well.

    It’s called the Yield Gap – the difference in agriculture yield from farms in developed countries – which are more efficient and deliver more food per acre – vs. emerging countries, which are, of course, the very places where food is most needed.

    And that gap is part of the reason why Denniston, whose career has included investing in green tech and more as a partner at Kleiner Perkins Caufield & Byers, as well as heading Tech Investment Banking  in the Western U.S. at SalomonSmithBarney, launched Shared X – which he describes as a for-profit agriculture impact company with two key goals: Generating financial returns and generating social returns.

    But for this longtime investor, the a ha moment that led to Shared X came not through number crunching – though he does plenty of that – but rather on a trip with his kids. What did he realize on that family vacation that changed their outlook and their lives? That’s what we discussed…

    28 min
  • Conversation on Leadership and Culture — Ron Williams, Chairman & CEO of RW2 Enterprises

    It’s a question that any executive or wannabe executive asks: What defines great leadership? Are great leaders born – or can the skills be learned? And how does strong leadership get connected to successful business outcomes?

    To learn more, I spoke with someone who not only spends much of his time thinking about leadership, he also writes and talks about it – and most importantly, has spent much of his life doing it.

    Ron Williams is the former Chairman and CEO of Aetna. When he joined Aetna in 2001, its loss from continuing operations was $292 million, with earnings per share loss of $0.46. By the time Williams left in 2011, the company’s full-year operating earnings were $2 billion, with operating earnings per share of $5.17.  During his tenure, Aetna was named FORTUNE’s most admired company in the Health Care: Insurance and Managed Care category for three consecutive years.

    Since Aetna, Williams has continued to help drive leadership in business, including in private equity. He as served as Operating Advisor to Clayton, Dubilier & Rice, where he is chairman of CD&R’s portfolio company, agilon health, and successfully guided two other CD&R portfolio company exits.

    His influence and experience doesn’t end there: Williams is a Director of American Express, The Boeing Company, Johnson & Johnson, Envision Healthcare and is a member of Deutsche Bank’s Americas Advisory Board.  He also served on President Obama’s President’s Management Advisory Board from 2011 to 2017, where he worked to bring the best of business practices to the management and operation of the federal government.

    As you can tell, Williams is motivated by leadership – why it matters, what it looks like, what it can do to improve business and, frankly, society.

    25 min

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