Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Sachin Khajuria – Two and Twenty, An Insider’s Take on Private Equity (Capital Allocators, EP.285)
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Aug 7, 2023 Sachin Khajuria, a former partner at Apollo and a 25-year veteran in private equity, shares insights from his book "Two and Twenty." He discusses the strengths and weaknesses of the private equity industry, emphasizing the need for transparency and education to improve public perception. Sachin dives into deal sourcing complexities and the importance of research and relationships in securing exclusive transactions. He also highlights future investment opportunities, especially in undervalued technology assets, and the role of talented teams in achieving success.
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Private Equity Strengths
- Private equity firms thrive on principal thinking, aligning their interests with investors.
- Top firms possess a "library" of knowledge, experience, and networks, providing a significant edge.
Prioritizing Relationships Over Merit
- Sachin Khajuria observed a deal pushed through Investment Committee despite data concerns, due to partner relationships.
- This prioritized relationships over merit and resulted in significant losses, highlighting cultural importance.
Size and Scope Advantages
- Larger firms benefit from greater scope, scale, and diverse strategies, gaining informational advantages.
- This "library" of insights allows them to scout opportunities and defend existing investments more effectively.
