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Steven Klinsky on Building Businesses

Masters in Business

00:00

Do You Focus on Debt or Equity?

Our first choice is to buy majority control and build the business that's our private equity fund if the founder says i love you guys you can add a lot of value i don't want to sell control we have a non-control fund called strategic equity to buy the same sort of businesses we just don't have control but we're very involved in building the business. If they don't need a loan we can lease them their own building back in a net lease and have both the credit of the company and the real estate is collateral. It's always been nichy within real estate there was one guy who did it very aggressively who bought every restaurant chain and stuff who overstepped the people

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