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Rick Marini advises aspiring entrepreneurs: 'Look for a stable business with recurring revenue where the owner is ready to exit. If you can add debt and have a plan to double revenue, you can achieve significant returns.'
Finding the right private equity deals involves leveraging networks to identify profitable businesses where founders might want to retire or cash out. These are often successful but not suitable for public offerings.
Private equity requires a focus on risk reduction. Unlike venture investing, where you bet on a few big successes, private equity demands a close examination of potential downsides to ensure deals pay off.
Switching from venture-backed startups to private equity felt like moving from catching lightning in a bottle to a more stable and rewarding game, focusing on growing already successful businesses.
Private equity allows us to leverage our experience in running companies and investing. We prefer SPVs over large funds, focusing on deals where we can add value without the long timelines of startups.
Rick Marini shares a perspective on investing: 'When I asked Naval Ravikant how big Bitcoin could get, he said a million dollars before we die. His ability to look decades ahead is remarkable.'