Capital Allocators – Inside the Institutional Investment Industry David Abrams – Sports Ecosystem Investing at Velocity (Capital Allocators, EP. 303)
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Mar 23, 2023 David Abrams, Founding Partner of Velocity Capital Management, shares his journey from distressed investing to sports ecosystem investing. He delves into the formation of Velocity, emphasizing partnerships with founders in sports and media. Abrams discusses the strategic revitalization of the X Games, illustrating the importance of innovation in engaging younger audiences. He also reflects on the diligence process for non-control investments and how relationships shape success in altering investment landscapes. Personal insights reveal his resilience and passion for mentorship.
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Early Career Path
- David Abrams' career began during the savings and loan crisis, witnessing the rise of alternative investments.
- He transitioned from Bear Stearns to Argosy Group, a boutique restructuring firm, before joining DLJ and building a successful distressed business.
Finding Market Advantages
- Focus on markets with structural advantages, like Germany during the early 2000s.
- Look for opportunities created by regulatory changes and deleveraging.
Building Within a Bank
- Leveraging internal resources within large institutions can accelerate business growth.
- Principal investing in distressed assets conflicts with banks' need to shed illiquid holdings.