Grove Collaborative’s Post

👞 Keeping it simple is key in scalable commercial real estate and when playing the board game Monopoly. Having a realistic plan with an exit strategy that is tested and achievable is crucial. 🎲 Real estate acquisition on the whole isn't a difficult concept. Kids playing the game of Monopoly pick up the premise of acquiring real estate quickly. Just like in Monopoly, however, not every deal is achievable. Often, the "simple deals" are the winners. To a new player, railroads in Monopoly are less attractive than Park Place or Boardwalk. That is until you learn that keeping it simple can allow for compounding wealth that can be used to purchase and scale when the timing is right. Buy the railroads, build up cash flow and value, and buy the more expensive properties when the timing is right. It's a simple concept in the game, but executing it can be tricky. 🚂 In real life real estate investing, it is advisable to find your niche, stay educated on your niche, hone your skills, keep it simple, and put focus on compounding growth so when those opportunities to scale occur, you are ready. 🎩 Wisdom from Charlie "The harder you work, the more confidence you get. But you may be working hard on something that is false." Keeping it simple allows for less risk that you may be putting effort into a fruitless endeavor. #charliemunger #keepitsimple #realestate

Rubin’s Black Private Equity Weekly Recap: 5 Updates to Follow in the Black PE Ecosystem 1.     Arkview Capital recently sold its majority stake in New York-based Icon Parking (“Icon”), the largest parking operator in New York City, to Hudson Valley Parking Trust, a global parking acquisition platform. Hudson Valley Parking’s investment seeks to expand Icon’s footprint and invest in its EV infrastructure. Arkview Capital is a private equity fund backed by the Ziff family office and is focused on providing strategic capital to businesses serving diverse communities. Arkview Capital also partners with underrepresented founders and promotes inclusive procurement and supply chains within leading Fortune 1000 companies. 2.     ICV Partners, LLC recently announced a successful exit from its portfolio company, Horizon Air Freight, to GHK Capital Partners LP, a Connecticut-based private equity firm. ICV initially acquired Horizon in 2019 and within 5 years announced that Horizon’s revenues increased six-fold and tripled its EBITDA. ICV Partners is a Miami-based lower middle-market investment company, specializing in providing operational and financial support across the business services, consumer products, food, and healthcare industries. 3.     o15 Capital Partners, through its Emerging Americas Credit Opportunities I fund, announced the closing of a recent investment in Engineered Recycling Systems LLC (“ERS”), an Atlanta-based company specializing in designing, installing and servicing custom equipment and systems focusing on scrap metal recycling as well as pneumatic scrap handling and dust collection systems for the paper and paper converting industries. o15, Administrative Agent and Sole Lender, supported Line 5 Capital’s investment in ERS. o15 Capital Partners is an Atlanta-based minority-owned alternatives investment firm focused on lower middle-market business within healthcare, education and business services. 4.     Vista Equity Partners, along with Blackstone, are in discussions to acquire Smartsheet, a Seattle-based maker of workplace collaboration software. According to its website, Smartsheet currently serves 85% of the Fortune 500. Vista Equity Partners currently holds a 4.7% stake in Smartsheet, which has a market capitalization of nearly $7 billion. Vista Equity Partners has over $100 billion in assets under management and invests exclusively in enterprise software and data- and technology-enabled organizations across private equity, permanent capital, credit, and public equity strategies. 5.     Redwood Software, a leader in automation fabric solutions, recently announced an agreement to be acquired by funds affiliated with Vista Equity Partners and Warburg Pincus LLC. Terms of the transaction were not disclosed. #privateequity #privatecredit #emergingmanagers

🌟 From Blip to Flip: Turning Setbacks into Opportunities in Property Investment 🌟 Property investing is rarely a smooth ride. Sometimes, a property that seemed like a perfect fit can hit an unexpected roadblock—a “blip.” But what if that blip could be the start of something even better? Here’s how I approach turning blips into successful flips: 1. Reframe the Blip: Every setback can teach us something. Whether it’s an unexpected repair, a financing issue, or even a deal that falls through, I take a step back and look for the hidden opportunity. Often, the blip reveals insights or gaps I hadn’t noticed before. 2. Plan Strategically: With the lessons learned, I re-evaluate my strategy. Sometimes, all it takes is a tweak—like negotiating a better price, changing the exit strategy, or looking at a different renovation approach. What seems like a barrier often points to a new path to profitability. 3. Flip the Script: A setback doesn’t mean the end of a deal. It’s a chance to get creative, which I love. For example, if financing proves challenging, I might explore joint ventures, lease options, or even try a rent-to-buy model to keep things moving forward. 4. Stay Focused on the Flip Potential: Remember, flipping isn’t just about the physical transformation of a property—it’s also about transforming a seemingly “lost cause” into a rewarding success. With the right approach, today’s blip can become tomorrow’s flip, delivering a property you’re proud of and profit in your pocket. Property investing isn’t about avoiding blips; it’s about knowing how to flip them to your advantage! 🔄💼✨”Let’s connect! I’ll be over the moon!” #PropertyInvestment #RealEstate #bestpath #FinancialFreedom #WealthBuilding #privatefinance #InvestmentStrategy #overthemoon

Not surprising considering private equity likes to divest in 5-7 yrs but interesting... Few thoughts: * Multiple: 13x seems quite high considering the varied quality of assets and inconsistent penetration in certain markets. My hunch is 9x-10x is probably more realistic but i defer to smarter folks on this. * CEO Mark Jordan. Being a former cstore retailer who sold a small chain decades ago to Pete Sodini-led The Pantry, Mark understands the cstore channel, which helped the company bypass the common hiccups many private equity-backed companies face in their first year or two in the channel. Mark's done a nice job. * Company Talent. This has been really interesting. Over the past couple of years, Refuel has lost some great talent. But it's also attracted some excellent personnel. I had the opportunity of meeting with Mark and some of the leadership team early '23... It's taken time to cultivate a culture but i believe the company has made some strides in this area. * M&A and NTIs. After being almost exclusively acquisition-minded, Refuel this year embraced a groundup model this year, preferring to stay away from the high interest rates of the past couple years. It also took time to remodel some weaker sites. * Streamlining Assets. I really like Refuel's NTIs and some of their remodels. At the same time, due to its acquisition approach, the portfolio lacks a consistent experience, features multiple planograms that do not always reflect a core. Overall, i give Refuel a solid B - better than most M&A private equity groups, but just below the top echelon. Good company for sure. #cspdailynews #refuelmarket #firstreserve

The recent acquisition of Hargreaves Lansdown by a private equity consortium raises important questions about the future of wealth management firms in the public market. Is this a sign of a broader trend? Gain valuable insights from this in-depth analysis by Lois Vallely. https://lnkd.in/eRdxKV5H #wealthmanagement #privateequity #investments

🚨 Snowden Lane Partners Regains Majority Stake from PE Owner Snowden Lane Partners, a boutique RIA with $12B in assets, has reclaimed a two-thirds ownership stake from Estancia Capital Partners LP, reinforcing its independent, employee-centric model. Estancia, which had held a majority stake since 2013, retains one-third ownership. This strategic move allows advisors and employees to control a larger share of the firm’s future. In addition, vested advisors could realize up to 40% of their equity holdings in the transaction. 💼 2024 Milestones for Snowden Lane: 🔹 Record revenue of $80M—a 30% YoY increase 🔹 Expansion to Boca Raton, Golden, and Philadelphia 🔹 Launch of a five-year Practice Continuation Plan for advisor succession "We’re thrilled to open 2025 with this announcement, demonstrating our commitment to independence and advisor-centric growth," said Rob Mooney, CEO of Snowden Lane. 🔗 Full story: http://spr.ly/6049ayCEx #WealthManagement #PrivateEquity #RIA #AdvisorOwnership

Chuck Akre is a superinvestor who outperformed the market over his 23 years as a fund manager by buying "High-Quality" companies. Here are his Key Investing Concepts👇 1. The Three-Legged Stool Akre created the concept of the Three-legged-Stool: 1) Extraordinary Business 2) Talented Management 3) Great Reinvestment Opportunities and History These are things Akre needs to see before he invests. 1. Extraordinary Businesses 1.1 High Returns In the long run, your return will mimic the ROIC of a company. A stock outperforming the underlying business is rare. Because of that, Akre only invests in companies with a sustainable(!) high return on capital. 1.2 Competitive Advantages How does a company create sustainable high returns? By benefiting from competitive advantages that shield its business from competition. These are the most common forms of a competitive advantage: - Brands: People are willing to spend more - Price Leadership: Due to lower costs, a company can sell at lower prices - Patents: No other company can sell the product - Highly Skilled Labor: More innovation, higher quality - Scale: Smaller companies cannot compete anymore 1.3 Per Unit of Ownership Akre looks carefully at all numbers concerning the unit of ownership. Basically, what the shareholders get from what the company makes. Often, the company is doing great, but very little value is added for shareholders. 2. Talented Management Assessing management is among the most challenging parts of investing. Akre looks for the following: - Past performance - Past goals and if they were reached - Past promises and if they were held - Past communication with shareholders 3. Reinvestments Opportunities High returns in the past do not ensure future returns. Akre expects a company to have a long-term plan for future reinvestments. Possible long-term plans: - New products - Upselling Potential - New industries Summary: What makes a Great Investment? - High Returning Business Models - Moats that Protect these Returns - Aligning interests of Management and Shareholder - Future Reinvestment Opportunities