Capital Allocators – Inside the Institutional Investment Industry

Chris and Rob Michalik are twin brothers and co-founders of Kinderhook Industries, a middle-market private equity firm overseeing $8 billion focused on healthcare services, environmental services, and the automotive aftermarket. Chris and Rob joined me on Private Equity Deals to discuss one of their portfolio companies, Ironclad Environmental Services, and that conversation is replayed in the feed. This time around, we discuss their story attached at the hip. We cover their background and path to starting Kinderhook, including rooming together for the first 26 years of their lives. We discuss the firm's family-like culture, three pillars of its investment approach, unwarranted scrutiny of private equity in the healthcare sector, and the recent example of their purchase of Stewardship Medical Group out of the bankrupt Steward Healthcare. Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

On episode eight of season three of Private Equity Deals, Chris and Rob Michalik discuss Kinderhook Industries’ investment in Ironclad Environmental Services.   Chris and Rob are twin brothers and co-founders of Kinderhook, a twenty-year-old private equity firm that manages $5 billion specializing in middle-market businesses across healthcare services, environmental services, and automotive/light manufacturing.   Ironclad Environmental Services is a leading provider of logistics-based solutions focused on the containment of industrial waste. It has 50 branches and a fleet of 29,000 specialized rental assets that store, separate, and transport liquid and solid industrial waste.   Our conversation covers Kinderhook’s identification, due diligence, and negotiation of the deal. We discuss a significant early add-on acquisition, progress-to-date, and the future of Ironclad.   Learn More   Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Scott Bessent is the CEO and CIO of Key Square Group and a renowned global macro investor. His 40-year investment career has included two stints at Soros Fund Management, the first for a decade under Stan Druckenmiller and the second for five as CIO. In between, Scott launched a hedge fund, retired, and joined me at Protégé Partners when he learned retirement wasn’t for him.   Following his second tour at Soros, Scott started Key Square with $4.5 billion, one of the largest hedge fund launches in history. Scott has been profiled in two best-selling investment books, Steve Drobny’s Inside the House of Money and Sebastian Mallaby’s More Money than God.   Our conversation covers Scott’s investment path learning research from Jim Rogers, short selling from Jim Chanos, global macro investing from George Soros and Stan Druckenmiller, and twice hanging his own shingle. We discuss high-conviction ideas, asymmetric asset selection, position sizing, risk management, a hub and spoke approach, and core challenges of the global macro hedge fund business.    I once told Scott that he could read the newspaper six months ahead of time because I had never encountered someone with his ability to connect dots and imagine investments others had not considered. His interest in improving the country’s economic picture has led him to shed his publicity-shy nature, and I’m grateful for the opportunity to share his story. Take Capital Allocators Audience Engagement Survey Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

Ricky Sandler is one of the OGs of fundamental long-short equity investing. Ricky started managing a hedge fund thirty years ago and founded Eminence Capital a few years later. Today, he is the CEO and CIO at Eminence, where he oversees $7 billion across long-short, long-only, and long-extension strategies. Our conversation covers Ricky’s path to launching Eminence in his twenties and the evolution of long-short investing in the decades since. We dive into Eminence's culture, adaptation in the investment process, and creation of investment products to meet the needs of allocators, each of which has been an essential part of the firm’s ability to survive and thrive amid changing market dynamics. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership