This podcast episode discusses the journey of Rick Berman and Paul Buser, former managers of Notre Dame's public equity portfolio, as they transitioned to managing Cedar Grove, a permanent capital vehicle. The episode explores their motivations for starting Cedar Grove, the importance of lifelong learning and integration of teaching and investing, and the unique aspects of their shareholder community. It highlights the significance of permanent capital in their investment approach and emphasizes the values and long-term partnerships that make Cedar Grove successful.
Main points
• Rick Berman and Paul Buser left their positions at Notre Dame to start Cedar Grove, a permanent capital vehicle.
• The transition to Cedar Grove was driven by a realization that things were changing and the need to adapt.
• Cedar Grove operates as a private holding company with a balance sheet of half a billion dollars, exclusively backing company builders at any stage.
• The shareholder base of Cedar Grove consists only of principles, with no institutional capital involved.
• Cedar Grove aims for radical alignment of incentives and operates with an unusually long time horizon.
• Permanent capital provides stability and a longer time horizon compared to traditional investment structures.
• Cedar Grove's shareholder community plays an active role in analyzing investments, mentoring founders and CEOs, and sitting on boards.
• Cedar Grove embraces the idea of radical alignment of incentives and a supportive community for long-term success.
• Cedar Grove is committed to building a community of stakeholders rooted in love and belief in their success.
• Rick Berman and Paul Buser prioritize long-term value and personal alignment with the projects they undertake.
