- Insider’s Banker-of-the Week series appears in our weekday Newsletter 10 Things to Do on Wall Street.
- We’re featuring Graham Weaver, the founder and chief executive officer at Alpine Investors.
- Weaver’s private-equity company was founded in 2001 in a Stanford Business School dorm. The firm now has over 280 investments, and approximately $8 billion in assets.
Graham Weaver does not fit the stereotype of a finance professional.
He continues to A blogStanford Business School. He has entertained more than 283,000 people. TikTokFollowers for topics such as private credit and cryptocurrency
He is also the founder and chief executive officer of Alpine Investors. This private-equity company has $8 billion under management. Weaver created it in his dorm while at Stanford Business School 2001.
Alpine has invested more than 280 businesses, some of which are very busy in recent weeks.
The firm closed a variety of deals in July. Trilon Group is an infrastructure consultant supported by Alpine. Inked a partnership with an engineering firm called the Mannik & Smith Group. Alpine The stake was soldMindful, an automated phoneback company, invested in K-12 online tutoring. Alpine was also involved in the investment. FEV Tutor.
Insider heard Weaver say that “we run very concentrated portfolios that usually hold fewer than ten companies per fund.” “We are primarily focused on building teams and getting the best people when we play with companies.”
Alpine’s investment decisions hinge on the quality of its talent. The investment firm often brings in C-suite executives, and also has a hand in selecting M&A teams at its portfolio companies to manage add-on acquisitions, Weaver said.
Alpine also offers skiing. Program for CEO-in-trainingThe firm trains people it believes are qualified to run an Alpine-backed company.
This creates a path for future leaders but it could also alienate existing staff members at portfolio companies, who might not be open to having an outsider run their business.
Weaver explained that the CIT program works best for Alpine investments in which the current CEOs are retiring, or selling their stake. CIT candidates weren’t just hired. They are coached and come equipped with a ready bench of people who can be instructive.
Weaver explained, “They are reporting to experienced CEOs that have run the Alpine Playbook in the past.” “We prefer to concentrate on situations that involve a management transition. It is difficult to roll it out otherwise.
The “fundless sponsor” model
Weaver was a pioneer in the use of the “fundless sponsors” model. It was risky.
He cold-called labels-printing firms, an industry he was familiar with and was optimistic about. He found an owner who was willing to sell his stake.
However, Weaver hadn’t raised any funds. He relied on friends for investments and borrowed money from his own credit card. After signing a deal, all this was possible.
“I raised nearly the entire capital structure through debt. You could write yourself checks back then. That was how I funded some of my early deals. He said that although I would not recommend it, it was what I did.
This persistence aligns with Weaver’s CIT program in a way. Weaver seeks out individuals who have a “willingness to win”, persistence, and intellectual power when deciding the candidates for the initiative.
He stated, “People can do way more than what you think.” “Attributes are more important than experience,” is one of the basic premises of the program.
Weaver considers Tom Steyer, founder of Farallon Capital, one of his early investors and mentors.
The Banker of the Week series is featured in Insider’s 10 Things on Wall Street — Sign up to receive the newsletter each Monday morning.
