This podcast episode explores the process of adding a public market effort to a private equity firm. The Stockbridge team at Berkshire Partners discusses their background, investment criteria, and the challenges of gaining conviction in the public markets. They emphasize the importance of synergy with private equity, internal collaboration, and focusing on long-term and concentrated investing. The team also shares their approach to evaluating potential investments, prioritizing industries with stable or growing businesses and assessing management teams. They discuss the value of understanding the business and building long-term models for valuation. The episode highlights the diligence and portfolio management process, the importance of high conviction, and the firm's approach to board involvement. The speakers also emphasize the adaptability and opportunistic nature of their investment approach, as well as the lessons learned from investing in the public markets.
