Contributed by: Show Editorial Team
- Stone Point Capital’s trident funds seek to make equity investments between $50-$500 million
- Stone Point managed 8 private equity funds with aggregated committed capital of $25 billion
- Chuck Davis has over 30 years experience in private equity investing
INTERVIEW TRANSCRIPTS: Chuck Davis, CEO of Stone Point Capital with Matt Bird
Matt Bird – Host, Traders Network Show: 00:00
Welcome back to the Traders Network Show broadcasting worldwide from Greenwich, Connecticut. I’m Matt Bird. We’re here at the 2019 Greenwich Economic Forum and my next guest needs very little introduction on the economic development stage. Chuck Davis, welcome to the show. You know what, you’re a legend in the industry. You just came off the panel with a lot of other thought leaders. Can you tell us a little bit about what you talked about up there? Give us a little recap, your eyes and ears.
Chuck Davis – CEO, Stone Point Capital: 00:28
Well, we, I represent a private equity firm called Stone Point Capital and we’ve created a lot of jobs and a lot of businesses in Connecticut and around the world. We’ve done 47 startups and we’re very excited about the future and the opportunity to continue to grow the economy and create jobs and wealth for people.
Matt Bird – Host, Traders Network Show: 00:49
That’s, that’s amazing. What part does public private partnerships play in the economic development of all of this?
Chuck Davis – CEO, Stone Point Capital: 00:55
You know, one of the biggest things for us is most of our investors are pension funds, state pension funds, city pension funds, fire police teachers. We have the vast majority of the States in the United States and as everybody knows, they’re struggling with pension deficits. So if we can give them good returns that does well for the public sector. And so we use private sector skills to hopefully help the public sector in that way.
Matt Bird – Host, Traders Network Show: 01:23
You know, it’s terrific. I’m taking away from the panel up there. Can you give us a couple of sound bites from some of the comments you made up there?
Chuck Davis – CEO, Stone Point Capital: 01:42
I’d say the sound bites are that we’re at late stage of the economic cycle. So you’ve got to be cautious and you got to be careful pricing right now in almost every asset category is very, very high. And this is the first decade since I’ve been in business in the seventies eighties nineties and two thousands that hasn’t had a major correction. We’ve got two months to go. I don’t expect to happen in the next two months. So this will be the first decade in my adult lifetime that we haven’t had a recession or a major stock market debacle. And that’s just something that’s going to happen at some point. And I think people have to get ready for it and be prepared to manage through it because it usually creates a lot of dislocation.
Matt Bird – Host, Traders Network Show: 02:17
Is there any advice that you have for the masses that they’re watching? Any advice from a personal standpoint, they should take any consideration when looking at something like that.
Chuck Davis – CEO, Stone Point Capital: 02:25
Yeah, I think you just got to be careful and don’t put yourself to too much at risk and assume that if things do drop, that you’ve got the ability to labor on and so I think people need to be a little more cautious now than a few years ago. Maybe have a little more cash, maybe not borrow so much money and just be, be positioned to take a little bit of a punch.
Matt Bird – Host, Traders Network Show: 02:39
A little roller coaster ride. Markets they have their cycles. What’s next? What’s next for you?
Chuck Davis – CEO, Stone Point Capital: 02:57
We’re trying very hard invest in businesses that will do better in a difficult environment. Counter-Cyclical investments like we own Gordon brothers, which is liquidating a toys R us, Shopko, Gymboree dress barn, forever 21 that’s a business that will, you know, obviously provides a service as these companies close up stores and the Amazon effect. And if the economy turns down, they will be even more needed and their services will be even more involved. We own the largest, the nation’s largest consumer get consolidation company. So someone who gets themselves into credit card debt, signs up for our program and we help them get out of debt and get back to financial safety. And that company is doing very well now. But as consumers have more problems and delinquencies go back up in a softer economy, that company will provide that service. So we’re spending a lot of time on things like that.
Matt Bird – Host, Traders Network Show: 03:43
Where can people find out more about that?
Chuck Davis – CEO, Stone Point Capital: 04:01
That company is called freedom financial and you can Google them and go on their website and it’s a great program. And the average person on the program has $30,000 worth of debt in five or six credit cards. And we can help them get out of debt and they don’t have to pay a fee until and if we help them. So it’s a very good program and unfortunately, you know, a lot of people need that.
Matt Bird – Host, Traders Network Show: 04:23
I know you’d be pulled a bunch of directions. I have one type of, one more question for you. The Greenwich economic forum. What does this mean for the state of Connecticut?
Chuck Davis – CEO, Stone Point Capital: 04:27
I’m very excited about what they’re doing here. Obviously, Connecticut has had a tough go with a lot of things happening that were less than ideal, but this is a real serious attempt to move Greenwich and Connecticut forward alternative asset management. Greenwich used to be the capital of the world, obviously with some of the hedge fund performance and with a lot of people moving out of state to Florida and other domiciles, it’s not as powerful as it once was. But when you get Ray Dalio, Paul Tudor Jones, governor Lamont and all the people that came here today there’s a real opportunity to, to bring this place back and make it really important.
Matt Bird – Host, Traders Network Show: 05:13
I love that. I love that. Listen. Chuck Davis, thank you so much. Chuck Davis, CEO of stone point capital. You’re watching the Traders Network Show. Thanks so much for coming down and we really appreciate it. Special thanks to our affiliate partners, ABC, NBC, Fox and CBS. We’ll be right back after these messages.