Capital Allocators – Inside the Institutional Investment Industry cover image

Capital Allocators – Inside the Institutional Investment Industry

Top 5 of 2024: #5: Alex Behring, Daniel Schwartz - EP.384

Dec 30, 2024
Alex Behring and Daniel Schwartz, co-managing partners of 3G Capital, share insights from their transformative experience with Burger King. They delve into their strategic approach that turned a $1 billion investment into a $28 billion success story. Listen as they discuss zero-based budgeting for enhancing operational efficiency and the owner-operator mindset that drives their investment philosophy. Their reflections on teamwork, personal growth, and navigating acquisitions offer a fascinating glimpse into the world of private equity and the restaurant industry.
01:12:17

Podcast summary created with Snipd AI

Quick takeaways

  • 3G Capital's investment in Burger King transformed a $1 billion investment into $28 billion through effective long-term strategies and operational efficiencies.
  • The owner-operator model of 3G Capital emphasizes hands-on management and zero-based budgeting to drive cost efficiencies and growth opportunities.

Deep dives

The Success of 3G Capital's Investment in Burger King

The investment by 3G Capital in Burger King represents one of the most lucrative private equity deals, transforming a $1 billion investment into a staggering $28 billion in value over 14 years. The case highlights the effectiveness of a long-term investment approach, where annual dividends now amount to approximately 70% of the initial capital. This remarkable return is attributed not only to the operational strategies but also to the owner-operated model, which enables hands-on management and strategic growth. Thus, the investment serves as an illustrative example of successful private equity practices and the potential for high returns through effective capital allocation.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode