• Jim Strang (HgCapital Trust) - Building an Experience Curve in Business Software

  • Feb 9 2024
  • Duración: 42 m
  • Podcast

Jim Strang (HgCapital Trust) - Building an Experience Curve in Business Software  Por  arte de portada

Jim Strang (HgCapital Trust) - Building an Experience Curve in Business Software

  • Resumen

  • In this episode we speak to Jim Strang, Chairman of HGCapital Trust. The Trust has an outstanding track record investing in business-to-business software companies. We discuss the evolution in private markets over Jim’s career, the benefits of specialisation and the reasons behind Hg Capital’s success.

    Show notes:

    [01:15] Jim discusses his early career
    [02:12] HgCapital Trust’s history
    [03:41] The benefits of specialisation
    [05:56] The importance of controlling the capital structure
    [08:02] Characteristics of typical Hg investments
    [10:07] The growth model
    [11:29] End market fragmentation
    [13:29] Being highly selective
    [16:25] Having the flexibility to own the best businesses over the long run
    [18:07] Replicating Hg’s success in the US
    [19:58] Why Hg is an attractive owner for entrepreneurs
    [22:35] Sustaining Hg’s culture and using greater scale to drive operational improvement.
    [25:25] Objectively assessing each company’s potential
    [27:03] Low loss rates and a few major successes
    [27:57] Why things typically go wrong
    [30:22] Leverage and the capital structure
    [33:33] Valuing private companies
    [38:43] M&A in a higher interest rate environment
    [40:54] Trust your gut

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