Interviews of top investor in the nation.

0:00 Speaker 1 Sunday Morning with Us is Ted Side’s and he’s with the company, the founder of Capital Allocatus, and he’s been writing books and he’s got a new book, Private Equity Deals. And in America, so many private equities, so many deals. Well, Ted tell us about it.

0:28 Speaker 2 Well, thanks, John, it’s a real pleasure to be on the show with you. Private equity is an incredible force in the economy, and it’s just not well understood.

0:41 Speaker 1 Has it gone too far? Ted, because look what’s going on with Boeing?

0:48 Speaker 2 Yeah, well, Bowe’s a public company, so it’s very different. The question that comes up is is private equity a force for good or is it a force for bad? And there’s a lot of buzz in the public that private equity has been back, and I think that’s just flat out wrong.

1:10 Speaker 1 Well, that’s what the decisions have to be made, that private equity going back. I mean, the whole thing in America happened about forty years ago when Mike Milkin got involved. Is that do you visualize it that way?

1:27 Speaker 2 Yes, that’s when the real kind of modern private equity industry started and certainly took a big hiccup when Direxel went under with all the junk bond financing at the time.

1:39 Speaker 1 I was there. I was there in those days, and I dealt with Mike Milkin. We never made a deal, but I dealt with him, and I dealt with all his people, and I ended up doing bank deals. Now, the only difference is I’m only worth a few billion another people are worth twenty thirty bigin What say you, Well, I.

2:05 Speaker 2 Don’t think anyone’s going to cry for you about the few billions, but yes, it’s you know, this industry started with Mike Milkan, and it took a long time. Really only after the global financial crisis that really exploded in size, with commanding a lot of money from endowments and foundations and pension funds around the world.

2:25 Speaker 1 And do we turn on investment if you look at the forty year curve of twenty year curve, did we turn our investment with investing with hedge funds versus investing or just buying the SMP? What say you on that?

2:43 Speaker 2 Well, the hedge funds in the last twenty years have had an okay result, not great. Private equity has done significantly better than the SMP over the last twenty years. And interestingly, that’s just the average private equity firm. You know some of the better ones that you hear about or know about, a KKR or Apollo, they done even

3:03 significantly better than that.

3:06 Speaker 1 Understand and tell me what you you. How many books have you written so far?

3:12 Speaker 2 This is a third.

3:13 Speaker 1 Okay, and tell me about your books. And I haven’t bought your book yet, but I’m willing to buy and I’m going to buy it. Tell me about it. Well.

3:25 Speaker 2 This book is an exploration of the private equity industry as told by twelve different deal makers, some that you’d know, a KKAR or an Apollo, and a bunch that are very well regarded that you wouldn’t. And each chapter discusses a particular deal that they’re currently involved with where they only recently had exits. And it really tells the story

3:50 of how private equity works from the practitioners themselves.

3:56 Speaker 1 Understood. And look right now where trying times. We don’t know which way the politicians are going to go. On November fifth, John Paulson, who’s a good friend, has said that I’m selling all my equities if Kamala Harris wins.

4:16 Do you have political opinions?

4:19 Speaker 2 I do have some political opinions, though I think I feel like I’m in the majority of the country that isn’t particularly happy with either one of these candidates.

4:29 Speaker 1 Well, that’s that’s do you are telling you the truth. There’s a lot of people that hate both sides.

4:36 Speaker 2 Yeah, yeah, but no challenges.

4:39 Speaker 1 Yeah, I’ll ask you a question. If you bought a company tomorrow, would you let Kamala Harris run it?

4:48 Speaker 2 I don’t think she has the qualifications to run a company.

4:51 Speaker 1 I answered it the same way. Donald Trump He’s got, you know, charisma. You know, people will buy his product just because it’s Donald Trump.

5:02 Speaker 2 Sometimes that’s true. I’m not sure his track record of running companies is all that great either, though.

5:10 Speaker 1 Well Atlantic said he didn’t do well. So tell people about the book. Is it available on Bonds and Noble? Is it available on Amazon?

5:24 Speaker 2 Yeah, it’s available everywhere now, Barnes and Noble, Amazon, anywhere you’d want to buy a book and designed. Yeah, the book’s really designed for people to understand this, this huge power in the economy. Equity Now, yeah, owns like ten thousand companies and products we use every day, services we use every day, whether or not we realize they’re owned

5:45 by private equity. So it’s a very important driver of what happens in the economy that I think is deeply misunderstood in the public.

5:54 Speaker 1 So the important people you talk about, important hedge fund people in the in the book.

6:02 Speaker 2 No, this is all private equity people. First book was about My first book was about hedgehunts.

6:07 Speaker 1 Yeah, I understood. All right, Well, I’m gonna go out and buy The name of the book.

6:12 Speaker 2 Is tell Us Private Equity Deals.

6:16 Speaker 1 Private Equity Deals, And your previous book was Capital Allocators, correct by Ted Side’s And uh, well, I’m gonna buy the book, and I’m gonna buy it for my two kids and and make sure that they know what they’re doing.

6:35 Speaker 2 Well, thanks, Jean. You’re going to have to let me know what you think when you’re done reading it.

6:38 Speaker 1 I look forward to it, and God bless you, and have a great weekend.

6:43 Speaker 2 God bless you as well.