Business Breakdowns Colossus

Welcome back for part two of this business breakdown on the private credit markets. I am now joined by Josh Clarkson, managing director at Prosek Partners. 
Our discussion with Armen was really focused on the supply & demand dynamics of private credit, where the public markets & regulatory markets have played a role, that certainty and speed of getting deals done, and how that has proved to be an advantage for private credit versus traditional solutions.
In our conversation with Josh, we transition into some broader takeaways, the history of the private credit markets, and some of the wrappers and what they have meant to the private credit markets. You will often hear about business development companies (BDCs), and we get into exactly how they are differentiated from traditional solutions. We also cover differentiation within that own subsegment, the public BDCs versus the private BDCs, what has happened in times of stress, what the fundraising environment has been like, and the future market outlook. Please enjoy part two of our breakdown on private credit.

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For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account.
This episode is brought to you by Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. Plus, with 75% of private market transcripts available exclusively on Tegus, we offer insights you simply can't find elsewhere. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick.
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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
Follow us on Twitter: @JoinColossus | @patrick_oshag | @zbfuss | @ReustleMatt | @domcooke
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes
(00:00:00) Welcome to Business Breakdowns
(00:04:52) Deep Dive into Private Credit Markets: Part Two
(00:06:17) Exploring the Competitive and Collaborative Dynamics of Banks and Private Credit Funds
(00:10:01) The Mechanics of Leverage in Private Credit Funds
(00:11:30) The Evolution of Business Development Companies (BDCs)
(00:18:54) Sector-Specific Strategies in Private Credit
(00:24:08) Historical Context: Life Insurance Companies as Original Credit Providers
(00:25:39) The Financial Crisis: A Turning Point for Private Credit
(00:27:49) The Role of BDCs in Today's Private Credit Landscape
(00:30:28) Differentiating Private Credit Strategies and Structures
(00:33:59) Navigating the Complex World of BDC Metrics and Valuations
(00:40:57) Adapting to Rising Rates: Strategies and Opportunities
(00:45:47) Looking Forward: Innovation and Growth in Private Credit
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Today, we have a special two-part episode on private credit. In 2023, the global private credit market topped $2.1 trillion in assets and committed capital. Rather than making blanket statements like private credit is an emerging bubble, we wanted to explore the various segments of private credit and ask simple questions like “Where is this growth coming from?”, take a closer look at supply and demand, and capture some of the nuance that is so important to any analysis of these emerging markets. 
To start, we use the lens of a successful fund manager in the space, Armen Panossian, the co-CEO of Oaktree. Beyond Howard Mark's famous memos, Oaktree is a $192 billion asset manager known for its long history in credit. We hope these conversations give you a better sense of what's happening in the private credit ecosystem, the difference between strategies and wrappers, the demand for private credit solutions, how regulations have impacted this market, and much more. Please enjoy this breakdown on private credit. 

Register for the Business Breakdowns x Founders Conference.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account.
This episode is brought to you by Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. Plus, with 75% of private market transcripts available exclusively on Tegus, we offer insights you simply can't find elsewhere. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick.
-----
Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Follow us on Twitter: @JoinColossus | @patrick_oshag | @zbfuss | @ReustleMatt | @domcooke
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes
(00:00:00) - Welcome to Business Breakdowns
(00:05:52) - Deep Dive into Private Credit: A Growing Market
(00:08:17) - Exploring the Dynamics of Supply and Demand in Private Credit
(00:11:08) - The Evolution of Private Credit Since the Global Financial Crisis
(00:15:28) - The Role of Private Equity and Banks in Private Credit
(00:19:03) - Building a Sustainable Advantage in Private Credit Strategies
(00:23:32) - Innovative Financing: The Case of Life Sciences Lending
(00:27:23) - Identifying New Opportunities: Infrastructure Lending and Rescue Financing
(00:30:10) - The Importance of Fund Size in Private Credit Strategies
(00:32:32) - Oaktree's Approach to Private Credit Products
(00:36:25) - Investment Strategy and Allocation Across Funds
(00:39:12) - Risk Management and Restructuring Expertise in Private Credit
(00:41:39) - Navigating the Secondary Market for Private Loans
(00:43:36) - Evolving Landscape of the Distressed Debt Market
(00:47:13) - Impact of COVID on Private Credit Valuations
(00:51:16) - Oaktree and Brookfield: A Strategic Partnership
(00:53:03) - Future Considerations: Rates, Elections, and Economic Implications
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Today, we are breaking down British American Tobacco. Regardless of your views on tobacco as a product, the market is one of the oldest in the world. My guest for today is Evan Tindall, co-founder and CIO of Bireme Capital, and he helps us cover how the tobacco market has evolved.
We go way back in time, discussing how the product itself has evolved from smoking pipes to cigarettes to what we're seeing today - the nicotine pouch market and all the craze around it. We also cover how you evaluate a company where the market outlook is so uncertain. Please enjoy this breakdown of British American tobacco.

Register for the Business Breakdowns x Founders Conference.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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This episode is brought to you by Public: invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account.

This episode is brought to you by Tegus, the only investment research platform built for the investor. With traditional research vendors, the diligence process is slow, fragmented, and expensive. That leaves investors competing on how well they can aggregate data — not on their unique ability to analyze insights and make great investment decisions. Tegus offers an end-to-end platform with all the data you need to get up to speed on a company or market: up-to-the-minute financials, customizable models, management and culture checks, and, of course, our vast and growing library of expert call transcripts. Tegus is changing the world of expert research. Learn more and get your free trial at tegus.com/patrick.
-----
Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
Follow us on Twitter: @JoinColossus | @patrick_oshag | @zbfuss | @ReustleMatt | @domcooke
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes
(00:00:00) Welcome to Business Breakdowns
(00:05:18) The Rich History of Tobacco and British American Tobacco
(00:10:25) The Evolution of Tobacco Products and Market Dynamics
(00:13:46) Regulatory Landscape and Its Impact on Tobacco Industry
(00:16:04) The Rise of Next-Generation Tobacco Products
(00:18:44) Market Trends and the Future of Tobacco Consumption
(00:28:57) Challenges and Opportunities in the Tobacco Industry
(00:31:34) Investment Perspectives and the Future of British American Tobacco
(00:36:07) Investors Shying Away From Owning Tobacco Companies
(00:42:32) Effects of The Vaping Phenomenon
(00:44:29) Lessons Learned From British American Tobacco
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Today, we cover the industrial conglomerate AMETEK. This is one of eight companies that Mark Leonard and his team at Constellation Software studied as they built their own empire. And it's one well worthy of a discussion as you'll hear. 
To break down AMETEK, I'm joined by Nael Fakhry, Co-CIO of the Osterweis Capital Management Growth and Income Strategy. Nael has spent a significant amount of time around AMETEK from the early 2000s until today. Please enjoy this breakdown on AMETEK.

Listen to Mitch Rales talk about Danaher on Art of Investing.
Interested in hiring from the Colossus Community? Click here.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
-----
This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account.

This episode is brought to you by Tegus, the only investment research platform built for the investor. With traditional research vendors, the diligence process is slow, fragmented, and expensive. That leaves investors competing on how well they can aggregate data — not on their unique ability to analyze insights and make great investment decisions. Tegus offers an end-to-end platform with all the data you need to get up to speed on a company or market: up-to-the-minute financials, customizable models, management and culture checks, and, of course, our vast and growing library of expert call transcripts. Tegus is changing the world of expert research. Learn more and get your free trial at tegus.com/patrick.
-----
Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
Follow us on Twitter: @JoinColossus | @patrick_oshag | @zbfuss | @ReustleMatt | @domcooke
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes
(00:00:00) Partners
(00:01:40) Welcome to Business Breakdowns
(00:03:52) An Overview of Ametek
(00:05:17) Ametek's Diverse Product Range 
(00:12:09) Ametek’s history: From Bankruptcy to Industrial Dominance
(00:21:22) Ametek's Growth Model: Innovation, Acquisitions, and Global Expansion
(00:26:23) Understanding Ametek's Finances
(00:30:37) Exploring Revenue Growth and Margin Expansion
(00:31:10) Incremental Margins and Cyclical Nature of the Business
(00:32:07) Operational Excellence
(00:34:35) Decentralized Approach
(00:36:21) The Role of Acquisitions
(00:37:33) Challenges and Risks
(00:39:45) Capital Allocation
(00:46:55) Evaluating Cyclical Business Performance and Resilience
(00:49:27) Dividend Policy
(00:50:44) Valuation and Growth Sustainability
(00:54:41) Key Lessons
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Today, we're covering a behemoth in the research market, Gartner. Executives are willing to pay up to $30,000 for reports and $50,000+ for full subscriptions so they can access insights and data to help them make business decisions, purchasing decisions, and pivoting decisions. 
Our guest is Alvise Peggion, portfolio manager at Fairlight Asset Management. He helps us cover how Gartner grew into this at-scale player, how the research and sales model has been fine-tuned over time, and where the opportunity for growth is in the future. Please enjoy this Breakdown of Gartner. 

Interested in hiring from the Colossus Community? Click here.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account.
This episode is brought to you by Tegus, the only investment research platform built for the investor. With traditional research vendors, the diligence process is slow, fragmented, and expensive. That leaves investors competing on how well they can aggregate data — not on their unique ability to analyze insights and make great investment decisions. Tegus offers an end-to-end platform with all the data you need to get up to speed on a company or market: up-to-the-minute financials, customizable models, management and culture checks, and, of course, our vast and growing library of expert call transcripts. Tegus is changing the world of expert research. Learn more and get your free trial at tegus.com/patrick.
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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
Follow us on Twitter: @JoinColossus | @patrick_oshag | @zbfuss | @ReustleMatt | @domcooke
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes
(00:00:00) Welcome to Business Breakdowns
(00:03:52) Deep Dive into Gartner's Business Model
(00:05:13) Understanding Gartner's Value Proposition
(00:08:40) Gartner's Competitive Landscape and Growth Strategy
(00:18:19) The Evolution of Gartner
(00:25:23) Gartner's Financial Model and Shareholder Value
(00:26:55) Understanding Gartner's Revenue and Pricing Strategy
(00:28:59) The Impact of the Pandemic on Gartner's Business Model
(00:30:52) Gartner's Resilience Through Economic Cycles
(00:34:38) The Value Proposition of Gartner to Executives
(00:36:33) Gartner's Competitive Edge and Market Position
(00:40:48) Sales Force Dynamics and Compensation Strategies
(00:42:35) Future Growth Strategies and M&A Considerations
(00:44:58) Future Growth and Strategic Focus
(00:47:09) Key Lessons from Gartner's Success
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This is Matt Reustle. Today, we break down Winmark, a major player in the reseller economy. You're likely familiar with some of Winmark’s brands, like Plato's Closet or Play It Again Sports. Altogether, Winmark operates five brands through a franchising model. 
Our guest to break down Winmark is the current CEO, Brett Heffes. During our conversation, we discuss the broader reseller economy, the dynamics of managing those brands and different franchise brands, and how Winmark thinks about growth. In the back half of the conversation, I also made sure to talk to Brett about his thoughts on capital allocation, focusing the business, and yes, on investor communication. Please enjoy this breakdown of Winmark.

Interested in hiring from the Colossus Community? Click here.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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This episode is brought to you by Public. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account.
This episode is brought to you by Tegus, the only investment research platform built for the investor. With traditional research vendors, the diligence process is slow, fragmented, and expensive. That leaves investors competing on how well they can aggregate data — not on their unique ability to analyze insights and make great investment decisions. Tegus offers an end-to-end platform with all the data you need to get up to speed on a company or market: up-to-the-minute financials, customizable models, management and culture checks, and, of course, our vast and growing library of expert call transcripts. Tegus is changing the world of expert research. Learn more and get your free trial at tegus.com/patrick.
-----
Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
Follow us on Twitter: @JoinColossus | @patrick_oshag | @zbfuss | @ReustleMatt | @domcooke
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes
(00:00:00) Welcome to Business Breakdowns
(00:04:25) Exploring the Resale Market with Windmark's CEO
(00:06:34) The Mechanics of Winmark's Franchise Model
(00:07:10) Winmark's Unique Position In The Resale Economy
(00:12:21) Franchisee Support and Business Model Insights
(00:20:44) Growth Strategies and Franchisee Expansion Philosophy
(00:24:12) A Look At The Franchisee Agreement
(00:26:57) Traits of Successful Franchisees and Common Mistakes
(00:28:42) Effective Marketing Strategies for Franchisees
(00:30:45) The Importance of Viewing Stores as Legacy Assets
(00:32:33) Renewal Rates and Franchisee Health as Key Metrics
(00:35:27) Shifting Focus From Leasing Business to Core Resale Operations
(00:41:19) Capital Allocation and Shareholder Value
(00:45:51) A Unique Approach to Investor Relations
(00:47:31) Lessons Learned From Breaking Down Winmark
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