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What’s up, Fund Launch family? Today, we’re hearing some key points of the conversation between Lincoln Archibald and Krystof Bartos about how to invest in business owners!
Over the last few years, Krystof has recently purchased and sold multiple businesses, and now he’s in the process of launching a private equity firm.
Positive Prediction
Before we jump into the interview, we’re going to hear 3 reasons why Lincoln thinks Krystof will be successful in the launch of his firm:
- Validated proof of concept with his own money: Without outside help, he has invested in businesses and has had enough capital to keep doing it! Investors want to know that you’re not experimenting with their money.
- Confidence in what he knows, and humble about what he doesn’t: Krystof brings in partners and advisors to help him on his weaknesses
- He will keep buying businesses whether he raises the money for his fund or not: I have no doubt that he’ll succeed, but it’d be hard to fail, seeing that his occupation is buying businesses!
Let’s dive into the interview!
Krystof’s Journey in Business
Lincoln: Tell us about your background and career!
Krystof: I went into business the first day after high school. I worked as a financial advisor and invested in the financial and the real estate markets. I started and closed a few businesses but tried my best. Then, I thought…
“Why am I trying to start businesses from scratch if I’m not good at it?”
I found out that I could buy businesses, so I’ve bought 3 to this day. Two of them were minority acquisitions, and then I sold a few!
The Art of Business Acquisition
Lincoln: How did you purchase your first couple of businesses?
Krystof: The first 2 I used mostly by personal capital, and I used seller financing and creative structures to get me into the minority positions. We look for the small percentage of smaller businesses that are successful and have a lot of upside, but that aren’t yet noticed by the big PE or VC firms.
Another thing I want to mention: we are called Guardians of Legacy because we promise owners that when we buy the business, we will carry on the legacy, mission statement, and optimal work culture that the owner imagined. We don’t simply buy the business and fire everyone; we work to keep the culture while improving the business.
Strategic Business Holding
Lincoln: How long do you keep the businesses before you sell them?
Krystof: This is what I tell business owners…
“Run your business today like it could run forever and run it today like you could sell it tomorrow.”
But that’s not what everyone does, so we come in and try to transform the business into something like that. We like to keep it flexible and implement multiple strategies: keeping it forever, taking it public, or rolling it forward to different funds.
Moving to the Fund Model
Lincoln: So, now you want to use the fund model to expedite these acquisitions. Why?
Krystof: Most investments are tied to the stock market: stocks, most private equity, and even REITs. If we can implement the fund model, we can offer investors what others can’t. An investment in us, in small companies, will further diversify anyone’s portfolio. I’m not saying it’s better than the stock market or real estate, it’s just different.
Krystof’s approach to investing in business owners introduces a new way to diversify portfolios. Lincoln is confident that Krystof can make investing in small businesses easier for him and his investors through the fund model.
Conclusion
To listen to the rest of the “Funds that Won” podcast, click here. Or, visit Fund Launch to get help starting your own investment fund!
Thanks for stopping by,
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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.
