Rainmakers #2 Rainwater's Solo Act
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Jan 24, 2024 Discover how Richard Rainwater established his investment firm Rainwater Inc using capital, connections, and culture. Learn about his strategic acquisition of Penrod and his involvement in the healthcare industry. Explore Rainwater's deal-making approach, including his open office policy and creative ways to bear less risk.
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Rainwater's Evolving Style
- Rainwater's investment style evolved from backing emerging talent to focusing on under-managed companies.
- Market shifts and increased competition prompted this change.
Lowball Offers
- Sid Richardson bought properties at lowball offers, influencing Rainwater's style.
- Rainwater seeks low prices, good operating terms, and financial leverage in deals.
Rainwater's Investment Method
- Find major one-time transformations, often in declining industries.
- Recruit and incentivize the best manager to restore profitability.