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How We Bought 25+ Businesses and Built a $600M HoldCo at 34 and 33 | Iryna and Sameer Interview
Manage episode 478656468 series 3661139
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Meet Iryna Dubylovska and Sameer Rizvi.
Founders of RD Capital Partners (RDCP). Over the past eight years, they’ve made 31 investments that have been consolidated into 12 companies, employing a total of 2,000 people.
A combined $400m of revenue and $40m of EBITDA.
1. We pick sectors and businesses where profits and cash-flow are the main driver of value.
2. Decentralize your operations, 'Hire very smart people and leave them alone, let them get on with it.'
3. We ran companies nice and lean. We just reinvest those profits so rather leaving those profits to pay down debt quickly or for the improvement of our lifestyle.
This is how they’ve been able to compound at almost a TRIPLE digit internal rate of return (91.4% IRR) for eight years.
4. When it comes to wealth creation point of view:
Private market is better than public markets.
Because there is significantly less arbitrage…
5. At the end of the day, it's all about how you can buy $10 million for $3 million.
6. 50% industrials, 25% healthcare, 25% consumer – that’s quite a balanced portfolio in sectors and businesses which are relatively critical to the British economy.
***
A true buy and hold strategy experts.
Acquiring manufacturing, construction, engineering and healthcare companies for 3x EBITDA to sell them (if they want to) for 8-10x EBITDA.
I hope you enjoy listening.
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Timestamps:
00:00:00 - Intro
00:02:31 - Life before the first acquisition and the risk of not starting your own investment company
00:07:21 - Leaving the job and going all-in finding the 1st deal
00:09:43 - Details and the structure of the first acquisition
00:14:22 - Improving lifestyle with every transactions
00:16:04 - Overview of the portfolio and thought process behind previous investment decisions
00:23:30 - Building dealflow and finding the best deals
00:29:42 - Only buying businesses they really understand. No complex transactions.
00:34:39 - Why did they give up buying distressed companies?
00:42:41 - 12+ portfolio companies, 4 kids - how they manage it all
00:46:22 - Common reasons portco CEOs approach Iryna and Sameer
00:50:07 - Saying ‘no’ to outside capital
00:54:36 - Why don’t more people do it?
01:04:44 - How they’ve been able to do this without giving up equity
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Follow Mikk/PrivatEquityGuy on Twitter: https://x.com/PrivatEquityGuy
Sameer on Twitter: https://x.com/sameer_rdcp
This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.
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