Breaking Into Finance

In this conversation, Craig interviews Jessica Holton about her journey from investment banking at Morgan Staley and private equity at Carlyle to eventually attending Stanford GSB for her MBA and pivoted to serial entrepreneurship. Jessica founded two businesses (BLAZE Skincare and Ours) and is also of Access Distributed, a nonprofit organization that helps students from underrepresented backgrounds break into finance. Jessica shares the challenges faced by fellows and provides advice on networking and building relationships in the finance world. They also discuss the importance of in-person internships and how to make the most of remote work. Jessica offers frameworks for choosing the right path in banking and shares her experience transitioning to entrepreneurship. The conversation concludes with a discussion on the role of business school in personal growth and development. Takeaways Access Distributed is a nonprofit organization that helps students from underrepresented backgrounds break into finance. Networking and building relationships are crucial for success in the finance world. In-person internships provide valuable opportunities for learning and building connections. When choosing a path in banking, consider the people you will be working with, the types of deals you will be involved in, and your interest in the industry. Business school can provide a supportive environment for exploring entrepreneurship and personal growth.

In today's episode, I wanted to take a 1-week break from the interview model to talk about some investors and strategies that I admire and that have (or are in the process of) changing the industry. These are some important figures and strategies to study and understand on the road to becoming a better investor. Key Highlights: Robert Smith and Vista Equity Partners: Recognized for his pioneering insight into software companies' valuation, Smith's approach to leveraging these high-gross-margin businesses has positioned Vista as a leader in software investment Seth Klarman and Baupost Group: Klarman's philosophy of being able to price anything, regardless of the asset type, showcases the depth of value investing and the principle of margin of safety. His influential work, "Margin of Safety," is a must-read for aspiring investors Nelson Peltz and Trian: Through Trian, Peltz exemplifies how activist investors can drive significant changes within companies by advocating for more efficient operations and shareholder value maximization Pete Stavros and KKR: 50 years after Henry Kravis, George Roberts and their mentor Jerome Kohlberg started pursuing the first leveraged buyouts, KKR continues to innovate with strategies like Stavros' decision to offer shadow equity to employees. This action has shown in several pilot investments to lead to substantial operational improvements and value creation

Pete Fraser, an investment banking associate at Guggenheim, shares his journey from working in a steel mill into investment banking. He discusses the importance of finding a mentor and making conscious decisions about career paths. Pete also highlights the role of business schools in preparing students for investment banking interviews and the differences between bulge bracket and boutique banks. He emphasizes the need for intentionality and finding fulfillment in a career in investment banking. Pete also shares advice on dealing with imposter syndrome and the importance of setting priorities. Pete's book is Running with the Bull: A Survival Guide to MBA Recruiting (https://bdmrka.com/)

I got to sit down with Saumil Jariwala to discuss his path to private equity, including my path from consulting (not banking!) to PE. We also spend a substantial amount of type talking about the history and opportunity in the search fund space, a small but rapidly growing and highly profitable segment of private equity. For those who listen to the full episode, here are links to some of the additional educational resources Saumil mentions during the interview: 1) Stanford GSB Study: https://www.gsb.stanford.edu/faculty-research/case-studies/2022-search-fund-study-selected-observations2) HBR Review: https://hbr.org/2017/01/buying-your-way-into-entrepreneurship 3) Buy Then Build: https://www.amazon.com/Buy-Then-Build-Acquisition-Entrepreneurs-ebook/dp/B07JKM2F5Q 4) List of prominent search fund investors: https://searchfund.org/

I'm joined by Kristen Meredith, a VP at Prysm Capital, who has carved a unique path in the investment world. Kristen is one of the lucky few to skip banking (she started her career at Blackrock) and then landed a PE associate role in Paris at Eurazeo, before landing her current growth investing role at Prysm. I've known Kristen for over a decade as a fellow Middlebury & Wharton alum, so it was particularly fun to hear her advice about building investment judgment, life as a PE Associate in Europe and some frameworks for how she evaluates growth investments.

Today I'm joined by Aaron Tobias, a Senior at Middlebury College and incoming Investment Banking Analyst at Morgan Stanley to talk about his recruiting journey as well as his advice for navigating the interview process. Aaron's free resource recommendation: Bill Ackman's Everything You Need to Know About Finance in Under an Hour (https://www.youtube.com/watch?v=WEDIj9JBTC8)

On this episode, Craig chats with Eddie Ackerman, Finance Operating Partner at Thomvest, about his career path and lessons learned along the way. We also do a deep dive on how the role of the CFO has evolved over the last 30 years and what that means for aspiring CFOs. CFOs require a combination of quantitative and qualitative skills, including financial expertise, data analytics, and strategic decision-making. The CFO role today requires substantially more strategic thinking than is has in prior decades.

On today's episode, Ian Becker and Ben Piekarz join the show to discuss their experience helping launch a student-run long-short equity fund at Brown University. They explain the mechanics of shorting stocks, how hedge funds use pairing trades to manage risk and they provide an example of a successful pair trade. Lastly, they offer advice for students interested in starting a similar strategy and building knowledge and experience in finance.

In the first of several appearances, avid listener Sherley Lopez Estrada, a Senior at Middlebury College, joins the show to talk about tips and tricks for reading finance news articles. On today's episode we talk about the best places to get free or cheap news articles and how to use news articles to begin developing a "view" on the markets.

After a few week's off, we're back to share a sneak preview of some great content we have lined up for this year. First full episode of 2024 will drop tomorrow!