50X
Episode 2 TransDigm: Redeeming the Most Painful Loss with Rob Small
50X

Episode 2: TransDigm: Redeeming the Most Painful Loss with Rob Small

50X

Episode 2

TransDigm: Redeeming the Most Painful Loss with Rob Small

Rob Small is a Managing Director at Berkshire Partners. We cover the core elements composing TransDigm’s business quality, Berkshire’s and Stockbridge’s initial investments, and the trajectory of Rob’s conviction.

This episode is brought to you by:

Tegus. The team at Tegus has built a full company intelligence platform aimed at streamlining the investment research process. In preparation for the 50X series, we actively used Tegus to gain qualitative insights beyond traditional reported data. To learn more and enjoy a free trial, visit tegus.co/50x

[00:00:00] – 50X Intro

[00:01:51] – Sponsorship: Tegus

[00:07:19] – Introduction

[00:08:57] – Berkshire Partners’ Initial Exposure to TransDigm

[00:10:57] – Auction in 2003 by Odyssey Investment Partners

[00:14:35] – Contrast TransDigm with Hexcel

[00:15:55] – Re-engaging with TransDigm post-IPO

[00:18:33] – Origins of Stockbridge

[00:24:53] – Core Elements of TransDigm’s Business Quality

[00:29:52] – Investment Trajectory for Stockbridge and Berkshire Partners

[00:33:31] – Rob’s Appointment to TransDigm’s Board of Directors

[00:36:42] – Rob’s Trajectory of Conviction

[00:42:59] – Translating Conviction to Position Size

[00:43:50] – Persistent Undervaluation: Acquisition Pace and Exit Multiples

TransDigm: Redeeming the Most Painful Loss with Rob Small

Introduction

Will
I'm delighted to be here today with Rob Small. Rob is a Managing Director at Berkshire Partners, one of the leading private equity firms in the country, based here in Boston. And Rob is also the founder of Stockbridge, a public investment partnership originally formed to invest partners' capital in the public markets. Rob has a unique longitudinal perspective on TransDigm. He was first involved in diligence on TransDigm as a potential private equity investment when Odyssey Partners sold the company in 2003. Though that opportunity did not materialize, Rob invested personally at around $24 per share shortly after the IPO and then led a large investment by Stockbridge in 2008. He ultimately joined TransDigm's board in 2010. Rob continues to hold those original shares and with dividends reinvested, the multiple uninvested capital is in the vicinity of 60 times. So, Rob, welcome and thanks for joining us.

Rob
Thanks, Will, happy to be here.

Access the full transcript
Sign in or register to view episode transcripts.

Contact

Get in touch at help@joincolossus.com