This podcast features an interview with Michael Choe, CEO and co-head of Charlesbank Capital Partners, a private equity firm. The conversation explores Charlesbank's evolution, focusing on their shift from simple valuation heuristics to a more sophisticated "Fan of Outcomes" model for investment decision-making. Choe details how this probabilistic approach, emphasizing two-year projections and asymmetric risk/reward profiles, impacts sourcing, due diligence, and portfolio management. A key takeaway is the importance of integrating value creation plans directly into the investment modeling process to improve accountability and decision quality. The interview concludes with Choe discussing future strategies for Charlesbank, highlighting their focus on human capital management and maintaining a research-driven approach.
