The Capital Stack Jerry Pence of Balanced Capital Partners on PE Is Bull$hit, Recovering From the First Deal Going Flat, and Humility in Investing
With over 25 years of experience in private equity, operations, management consulting, and investment banking, Jerry Pence of Balanced Capital Partners, has vast experience and a proven track-record for delivering returns to shareholders. He has acquired 12 companies with revenues totaling $1.6 billion, $137 million of deployed equity, resulting in over $1.1 billion in equity returned or an 8.4x cash-on-cash to investors.
Jerry Pence transitioned from private equity investing in family offices into Balanced Capital Partners. In the private equity investing, it was distressed buying by the pound. I just realized I wasn’t a value guy. I came to believe that value is relative. I loved being in environments that are more about growth and positivity. I’m getting good value relative to the opportunity.
What You’ll Learn:
- Distressed and special situations is simply allocating capital to generate fees. They are getting wealthy by getting 2% in fees.
- Private equity returns slice and dice the data in order to say, “this is my return.”
- Unrealized return vs. Actual return, there’s a bias to rounding up
Favorite Quote:
“Growth to me is the ability to have an alignment of interests.” - Jerry Pence
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The Capital Stack
All Things Tech Investing and Value Creation
Early growth investor David Paul interviews the world's greatest ecosystem, learn how to start and scale your own business, and find an edge in today's capital markets. To connect with David, visit:
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DISCLAIMER:
David Paul is the founder and general partner at DWP Capital. All opinions expressed by David and podcast guests are solely their own opinions and do not reflect the opinions of DWP capital. This podcast is for informational purposes only and should not be relied upon for decisions. David and guests may maintain positions in the securities discussed on this podcast.