“The New Tycoons” is an expansive overview of the current state of the private equity industry, hallowed career promised land for some (i.e., a majority of the people on WSO), destructive wreckers of companies for others. Bloomberg reporter Jason Kelly offers a guided tour of the world of private equity, from the broad-based strategy talks with the titans at the top of the pyramid to drilling down into the trenches below ground.
The big names are all here: Henry Kravis, Steve Schwarzman, David Rubenstein, George Roberts. Mr. Kelly explores each in the format of a “State of the Union” of each man’s respective firm. He doesn’t get too bogged down the stories of firm foundation or how they came to be—but that’s fine, because there are plenty of other excellent books on the history of each firm as it is.
There are boardroom corporate strategy conversations, such as the trend towards diversifying away from traditional private equity (led by Blackstone). You get to hear Henry Kravis and George Roberts discuss their efforts to carry on their legacy through a borderline-obsessive focus on company culture and succession. Mr. Kelly takes a peek inside TPG’s posh San Francisco office, part of the firm’s purposeful intent to distance itself from traditional Wall Street exemplified by KKR’s headquarters at 9 West, overlooking Central Park.
In addition to the private-equity folklore (including Schwarzman’s hilarious speech at the Alfred E. Smith dinner), there are also more sobering chapters about issues unique to the private equity industry as a whole. For those of us who love to argue about the tax treatment of carried interest or the conflict between PE firms and unions, there is a well-researched, level-headed chapter for each. And if you thought superday interviews at a traditional investment bank were rough, wait until you see what it takes to become an executive at KKR!
There is even an interesting chapter on the operations and due diligence side of the business, which tends to be overlooked. Let’s just say that if you’re a lateral hire from industry and tasked with the due diligence of the firm’s physical assets, it can be a pretty nice gig. I was also intrigued about the comparisons between the philanthropy of today’s PE tycoons (including Schwarzman’s affiliation with Catholic Charities) and the greats of yesteryear.
Overall, “The New Tycoons” is an excellent read and serves as an industry snapshot in the midst of drastic changes. To shed more light on those changes, I’ll be conducting an interview with the author, Jason Kelly, this week, to be posted on Tuesday, October 23rd. If you have any questions you’d like to get his thoughts on, feel free to send me a PM or let me know about it in the comments.
Read up, monkeys!
Monkey’s Review 1: Barbarians At the Gate
Monkey’s Review 2: The Financier
Monkey’s Review 3: Decision Points
Monkey’s Review 4: Debunkery
Monkey’s Review 5: When Genius Failed
Monkey’s Review 6: Monkey Business
Monkey’s Review 7: Death Of The Banker
Monkey’s Review 8: A Journey
Monkey’s Review 9: Damn It Feels Good To Be A Banker
Monkey’s Review 10: The Quants
Monkey’s Review 11: All About Hedge Funds
Monkey’s Review 12: The Unlikely Disciple
Monkey’s Review 13: Adventure Capitalist
Monkey’s Review 14: The Hedge Fund Book
Monkey’s Review 15: Investing In Hedge Fund of Funds
Monkey’s Review 16: Hilarity Ensues
Monkey’s Review 17: The Prince
Monkey’s Review 18: Markets Never Forget (But People Do)
Monkey’s Review 19: The Money Culture
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