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Show Notes:
Welcome, everyone, to episode 20 of Offshoot! Today, I’m joined by Leo Simpser, Founder and Head of LLJ Ventures, a private equity firm specializing in real estate, which he established in 2008. Their tight-knit, 8-person team—whom I like to call a SWAT team—delivers exceptional results. LLJ Ventures, together with LM Capital and LM Advisors, manages over $8 billion of high-net-worth and institutional capital. Through their innovative investment strategies, they’ve consistently provided a 24% IRR and a 2.3x multiple on average for their investors. Despite managing $1-2 billion, their approach remains boutique and bespoke. They eschew funds and prefer tailored investment structures, seeking out attractive risk-adjusted returns.
In our conversation, Leo shares his journey with LLJ Ventures, grounded in the lessons learned from his earlier private company, HNMA, which provided residential mortgages to underserved Hispanic borrowers. With a unique mix of “zoom in, zoom out” as described by Jim Collins, Leo remains community-oriented and purpose-driven while focusing on the finer details of execution. His intellectual rigor and ability to connect strategic vision with day-to-day tactics is a cornerstone of LLJ’s success.
Join us as we explore:
- The essential role of failure in the entrepreneurial journey, revealing who we truly are.
- Why taking a step back from the daily grind can be valuable.
- Identifying distressed opportunities in today’s market.
- The challenges of fund structures and their limitations.
- How institutional vs. private capital can shape investment decisions.
- Crafting innovative investment structures, such as deals with zero preferred returns.
- The importance of local expertise in operating partners.
- Co-GP investing, where LLJ may take up to 97% of the equity.
- Aligning portfolio allocation needs with deal risk profiles.
- Balancing flexibility and focus with opportunistic investing.
- Why relationships matter more than transactions.
- Creating opportunities for long-term employees to achieve wealth.
- Giving back through interest-free loans.
- The power of saying “no.”
- Following your entrepreneurial calling, recognizing that this journey happens just once.
Enjoy the episode!
