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What 100 Years of American Finance Tells Us About Today
9 segments available
In this episode of Invest Like The Best, Patrick O'Shaughnessy is joined by Alan Waxman, CEO of Sixth Street Partners. Alan dives deep into the evolution of the American financial system, explaining the historical guardrails and incentives that led to the modern boom in private credit. He introduces the "Factory Model" of investing, warning against the dangers of asset-liability mismatches and deteriorating underwriting standards in today's wealth channel. Beyond high-level macroeconomics, Alan shares his highly effective one-page personal organization system for maximizing return on time and balancing left-brain tactics with right-brain creativity. They also discuss the rapid adoption of AI, navigating career stages from your 20s to your 50s, redefining personal success, and the firm’s core ethos of always "facing the tiger." Timestamps: 0:00 Intro 13:48 The Rise of Private Capital 16:29 The Factory Model 22:19 The Wealth Channel 30:53 Asset-Liability Mismatches 44:17 AI & Creative Destruction 47:30 Personal Organization System 54:02 Career Eras & Success 59:19 Face the Tiger #Investing #PrivateCredit #Finance #AlanWaxman #SixthStreet #PrivateEquity #Economics #WealthManagement #Productivity #Podcast Presented by Ramp: https://ramp.com/invest Sponsored by Vanta, WorkOS, Rogo, and Ridgeline: https://www.vanta.com/invest https://workos.com/ https://rogo.ai/invest https://www.ridgelineapps.com/ ****** Patrick O'Shaughnessy is the CEO of Positive Sum. All opinions expressed by Patrick and podcast guests are solely their own and do not reflect the opinion of Positive Sum. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Positive Sum may maintain positions in the securities discussed in this podcast. To learn more, visit psum.vc
Segments Timeline
Intro
"This is a unique conversation. It's my second with Alan Waxman, the founder and leader of Sixth Street, one of the largest private capital investment firms in the world. Him and I have been going back..."
The Rise of Private Capital
"Okay. So then what happens? So obviously we know about you know global financial crisis is terrifying and um the reaction is uh is many things but what is installed post GFC that sets the seed for I g..."
The Factory Model
"resulted in the growth of the private capital industry because it was filling in the gap. So think about principal risk-taking activities. private capital was filling in the gap and with the except ex..."
The Wealth Channel
"investor had the option to call their money back. That would probably be something you want to be talking about a lot. By the way, prior to 2018, going back to just the the the financial system, the p..."
Asset-Liability Mismatches
"have really good risk management. I mean, that's why you if you look at commercial banks, I mean Jamie Diamond is one probably one of the best risk managers of all time. What he can do from a risk man..."
AI & Creative Destruction
"um when there was only two of us. So we've watched this and we could have gone to the wealth channel and raised all the same vehicles because of our track record and we have you know how many dollars ..."
Personal Organization System
"about like AI and software. I can't help myself. Um yeah, what do you This just feels like such a uh what a time to be alive, but also, you know, opportunity and danger. >> I mean, there's lots of opp..."
Career Eras & Success
"I'm curious what the different boxes are. And one of the things that I found very powerful was that when you run out of space, like one of one of the segments is a list of people to call. So there's l..."
Face the Tiger
"just selfishly curious about it at this age feels like the right time to ask is uh around the measurement of success. And uh Kevin Kelly, the former the one of the founders of Wired magazine has this ..."