E209: $70B AUM: How Cresset Delivers Alpha at Scale
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this insightful episode, Avi Kaminetzky shares his remarkable journey from Kirkland & Ellis lawyer to running Willis Stein and ultimately founding Crescent, which now manages $100 billion in assets. He explores the evolution of private equity from a scrappy entrepreneurial business to today's institutionalized landscape, revealing why (03:09) sector-specific and smaller funds often outperform their mega-fund counterparts. Kaminetzky delivers actionable insights on deal sourcing, relationship building with GPs, and the critical importance of culture in scaling organizations—offering both emerging investors and seasoned professionals a roadmap for long-term success in alternative investments.
Speakers
Avi Katz
Founder and CEO of Crescent Capital Group, managing $100 billion in assets for ultra-high net worth clients. Former private equity veteran who co-founded Willis Stein & Partners, with prior experience as a lawyer at Kirkland & Ellis and entrepreneur across multiple industries including oil & gas and alternative energy.
David Chen (Host)
Host of the HowInvest podcast, interviewing leading investors and entrepreneurs about their strategies and insights. Focuses on bringing actionable investment wisdom to ambitious professionals and business leaders.
Key Takeaways
Master the Full Business Puzzle
Don't just execute your assigned piece perfectly—understand how it fits into the complete picture. From your specialized perch, actively learn how every component connects and functions. This holistic perspective accelerates advancement more than hyper-focusing on narrow expertise alone. (42:42)
Seed Early, Reap Long-Term Partnership Rewards
Position yourself as a "great partner" to emerging managers by providing early capital, strategic advice, and consistent support. When they launch new vehicles or spin out, they'll think of you first—creating differentiated access and potential GP economics that sovereign funds leverage. (23:24)
Culture Cards Beat Culture Chaos
Distill organizational culture into a single-page document through intensive off-site sessions with experts. Review annually, hire against these factors, and decisively remove cultural misfits. Crescent's "built by clients for clients" principle with extreme accountability creates sustainable competitive advantage. (29:08)
Industrial Psychology for Executive Hires
Deploy professional assessment tools like GH Smart for senior positions—personality profiles aren't enough at the top. Complement with scenario-based questions that reveal behavioral patterns under stress. People don't change, so hire based on track record of behavior, not interview narratives. (32:06)
Be Present When Present
Work-life balance isn't about equal time—it's about full attention. When coaching your child's hockey game or attending family events, be completely there rather than fielding deal calls. Then return to work mode. Presence trumps time allocation for meaningful relationships. (43:57)
Statistics & Facts
- 59% of all private equity capital raised last year was raised by just six multi-strategy groups like Carlyle, Apollo, and Ares. (05:19)
- There's $12 trillion in private market investments expected between now and 2030 by individual (non-institutional) investors alone. (37:54)
- Average sponsor credit returns in the middle market are approximately 11% today, with 11.5% or higher in the lower middle market for senior debt risk. (35:12)
