Brent Beshore

Brent Beshore, founder and CEO of Permanent Equity who builds forever-owned companies, shares his unconventional path from liberal arts to permanent-capital investing. He discusses rejecting short-term private equity playbooks, designing incentives for long-term thinking, the role of faith and relationships in a meaningful life, and how AI and compounding ideas shape decision-making.

Brent Beshore and I spoke for 10 hours about all things investing and business, and decided to record a 2-hour chunk of our conversation. We start by discussing private equity, venture capital, and the importance of brand. We then explore the difference between public and private company valuation, and the potent idea of peer mentorship.  The conversation wraps up with Brent’s recent experience with one of the greatest investors and thinkers of all time.  Above all, this is a conversation about what is right and wrong in the world of money management and investing, and where the business is heading.  Please enjoy!   For comprehensive show notes on this episode go to investorfieldguide.com/adventures/ For more episodes go to InvestorFieldGuide.com/podcast.  Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag

This week’s guest is Brent Beshore, Founder and CEO of adventur.es, a family of companies that invests in family-owned companies. Brent has a very specific mission with this company, to cultivate a disaster resistant, compound interest machine. At just 33 years of age he has already built a portfolio of private companies that has produced impressive results.  He’s done all this out of the limelight and with no outside investors.  Brent discusses his rewarding but difficult journey and what he has learned, including sourcing and evaluating businesses, how he and his team have improved profitability at his portfolio companies after acquisition and so much more.   For comprehensive show notes on this episode go to investorfieldguide.com/beshore/ For more episodes go to InvestorFieldGuide.com/podcast.  Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag

For the 100th episode, I’ve brought back my good friend Brent Beshore. Brent was the 10th guest on the podcast, after we met because of a mutual interest in capital allocation. I quickly learned that Brent was one of the most unique and thoughtful investors around. He was an entrepreneur from the moment he left school, trying many different things before finding a fit buying smaller business with the intention of owning them forever. What amazes me about Brent is his encyclopedic understanding of business and the nuances of different business models and deal structures. This comes from reps. He and his team have looked at about 12,000 deals over the years, at every kind of business that you could imagine. I’ve been with him when he goes through this process and it’s fun to hear what makes certain businesses stand out from others, which is largely the topic of this conversation. You all know transparency is key for me, so it’s important to know that my family and I are investors in a fund called permanent equity, run by Brent and his firm Adventure.es. To commemorate this milestone episode, I can think of no one better than Brent, because he exemplifies what has made this podcast so fun for me: learning from other people who are willing to share what they themselves have learned through fun, blood, sweat, and tears. Please enjoy our conversation, and thank you so much for coming along on this journey. I can’t tell you how much it means to me. For more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag   Show Notes 2:02 - (First Question) – How does he think about optimizing risk in terms of the capital stack when looking at deals 5:27 – What conditions would they add debt down the road after investing in a company 6:52 – What business sectors are most intriguing for Morgan to invest in right now             6:57 – Trent Griffin Podcast 9:34 – Why no HVAC businesses if it’s such an attractive sector 13:56 – thoughts on rolling up similar businesses and horizontal scale 16:04 – Another industry Brent would focus on 18:02 – Difference between property management in larger cities vs smaller metro areas 18:51 – What role does profit margin play when Brent is evaluating a business 22:46 – The appeal of a hyper cyclical business             22:52 – Brent Beshore Podcast Episode 27:27 – Favorite counter cyclical business 28:14 – How they judge assets, tangible vs intangible assets 33:58 – How does he think about wage inflation when considering the cost of a business 37:21 – His fascination with pet crematoriums 38:57 – History of the permanent equity fund and the changes by having a larger pool of capital 43:48 – Pitching investors on a new structure for the business 46:14 – How will this business model scale   Learn More For more episodes go to InvestorFieldGuide.com/podcast.  Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag

Brent Beshore is the founder & CEO of Permanent Equity. In this conversation, we talk about the types of businesses that he buys, the structure of the firm, how macro environment plays into investment decisions, operating businesses, nuances behind transactions, family relationships, and balancing the success of businesses in the local environment. ======================= Pomp writes a daily letter to over 200,000+ investors about business, technology, and finance. He breaks down complex topics into easy-to-understand language while sharing opinions on various aspects of each industry. You can subscribe at https://pomp.substack.com/

Brent Beshore, Founder and CEO of Permanent Equity, shares his innovative approach to investing that defies traditional private equity norms. He reveals how using permanent capital fosters long-term growth without management fees or planned exits. Brent emphasizes the importance of cash flow over short-term metrics, advocating for a focus on culture and legacy in acquisitions. His philosophy encourages reinvestment and aligns incentives with operators, arguing that patience and steady compounding yield far better outcomes for both businesses and investors.

Brent Beshore, an entrepreneur and investor specializing in acquiring smaller businesses, revisits the podcast to share insights from analyzing over 12,000 deals. He discusses the nuances of financial deal structures and the importance of tailored strategies in business acquisitions. Brent also dives into the unique profitability of pet crematoriums and the challenges of the HVAC industry. Additionally, he explores innovative investment structures, the dynamics of property management investments, and strategies for scaling investment firms, offering a wealth of practical knowledge for aspiring investors.

Brent Beshore, founder of Permanent Equity, discusses the pitfalls of private equity and the importance of long-term ownership. He warns about the common practice of financial engineering that can lead to culture erosion in acquired companies. Beshore contrasts aggressive private equity strategies with sustainable, family-owned businesses, highlighting a people-centric approach. He shares insights on navigating the home services sector, effective marketing, and the significance of transparency in business transactions.

Brent Beshore, founder and CEO of Permanent Equity, discusses their marketing strategy, creating a margin of safety in operations, lessons learned from acquiring family-owned businesses, and the art of deal making. They also share their personal journey of changing beliefs and finding faith, as well as humbling experiences and misconceptions about religion.

Special guest Brent Beshore, Founder and CEO of Permanent Equity, discusses the challenges of businesses being 'loosely functioning disasters', the unique approach of Permanent Equity in acquisitions, and tips for SMB owners on finding quality people. He also talks about avoiding debt, being disaster-resistant, and the complexities of private equity investments in property management companies.