Invest Like The Best
Episode 358 Investing in Investment Firms
Invest Like The Best

Episode 358: Investing in Investment Firms

Invest Like The Best

Episode 358

Investing in Investment Firms

Erik Serrano is the CEO of Stable Asset Management. We cover the traits he looks for in founders of investing firms, how Stable provides support through all stages of the capital lifecycle, and what he's learned about designing successful investing strategies.

This episode is brought to you by:
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(00:03:33) - (First question) - Exploring the allure of investing in investment firms

(00:08:20) - Discussing the scarcity of investors in investment firms

(00:18:20) - Strategies for generating returns for investors

(00:22:50) - Analyzing risk/return dynamics in portfolios

(00:26:26) - Unveiling surprising insights from Project Legends

(00:29:56) - Characterizing the ideal General Partner (GP)

(00:37:23) - Identifying red flags in GPs' practices

(00:44:10) - Viewing investment strategies as marketable products

(00:52:52) - Delving into the emotional aspects of investing

(01:01:57) - Tracing the lifecycle of an investment firm

(01:13:04) - Offering guidance to aspiring young investors

(01:18:24) - Reflecting on the notion that ‘nice people finish last’

(01:23:52) - The kindest thing anyone has ever done for him

 

Investing in Investment Firms

Introduction

Patrick
My guest today is Erik Serrano. Erik is the CEO of Stable Asset Management, which he started 14 years ago in his early 20s and has scaled to over $3 billion of assets under management. Stable's strategy focuses on other investing firms. They look to back the Blackstones of tomorrow and provide those founders with capital and support, so their time is been doing what they do best, which is typically investing.

We discussed the commonalities among promising founders in the sector, how Stable serves as a full resource to their companies and some harsh truths learned from building an investing business. Please enjoy my conversation with Erik Serrano.

Falling in Love With The Business of Investing

Patrick
So Erik, what a fun opportunity this is to talk to someone that probably has looked at investing firms as a class of founders, just like I would look at start-ups as a class of founders more than anybody else, you even used that word founder. What got you so interested in investing in investing firms in the same way that I would think about investing in a technology business with lots of the same process? Like what was it about this that originally got your interest back when you were, I think, 23 when you started doing this?

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