Call —
Transcript batch
0:00 Caller: This call is being routed by Google.
0:00 You: This call will be recorded.
0:09 Caller: The cost of this call is 1 cents per minute.
0:12 Caller: I don't know.
0:19 Caller: Oh, sorry, one second.
0:25 Caller: Hi, Dad. How are you?
0:30 You: Hello.
0:37 You: I'm well and yourself.
0:42 Caller: I'm all right, happy 4th of July, well, two days after 4th of July, but happy 4th, I'm guessing.
0:42 You: Thank you.
0:45 You: Thank you.
0:51 Caller: Yeah, so I just wanted to quickly catch up with you, see where you're at, how it was last week post conversations with some of the friends we were working with.
0:59 You: I'm pretty much waiting for the Elliot process to finish.
1:00 Caller: And yeah, just to see how things go.
1:09 Caller: Yeah, all the offers have come in now.
1:09 You: Two are in hand, one more expected and then Elliot.
1:11 Caller: come in now? And what are your thoughts with the two in hand?
1:17 You: Assume the Elliot extends one.
1:21 Caller: Yeah, but in the sense of, yeah, but in the sense of, yeah, but in the sense of IP and trading and everything, almost results.
1:22 You: I don't know yet until Elliot comes through.
1:26 You: Part of the trouble is that Carrie is very
1:28 You: Carry is represented differently from a cash bonus, for example.
1:39 Caller: No, I mean with the other offers.
1:40 You: I assume they'll be comparable to whatever Brett will be sharing tomorrow.
1:47 Caller: Okay, makes sense.
1:47 You: Yes, I assume they will be comparable to what Brett would share tomorrow.
1:52 You: There are restrictions. They are not onerous.
1:54 Caller: Mm-hmm.
1:55 You: There are intended.
1:57 Caller: Okay.
1:57 You: intended uses of them, so I assume Elliot has a similar set.
1:58 Caller: Mm-hmm.
2:01 Caller: Okay.
2:02 Caller: All right.
2:02 You: I get the impression this is not simply a lunch.
2:05 Caller: Okay.
2:06 Caller: And in terms of tomorrow, is there anything that you're strict?
2:08 Caller: that you're strictly going to focus on, or are you just going to almost kind of go with a flood?
2:15 Caller: Yeah.
2:20 You: So I'm just treating it like any other loop in this process and see what I could answer for Brett.
2:26 You: answer for Brett. I do have Ben's original documents, so at least I have a sense of how Ben interpreted the way Brett is thinking.
2:34 Caller: Okay.
2:35 Caller: And with the two offers already in how?
2:37 Caller: offers already in hand. I guess now this is kind of the question that we've been probing at, but I haven't really known.
2:45 Caller: For Elliot to get to kind of a position whereby it would almost guarantee a yes from you, what would they need to do?
2:56 You: To guarantee a yes, $600,000 first year, whether or not they'll go that far to be seen.
3:05 You: Beyond that, I'm trying to understand what restrictions would come as a result of employment with Elliot.
3:07 Caller: Okay.
3:10 You: I expect at least some restrictions.
3:13 You: My hope is they are not onerous.
3:14 Caller: Okay. So I guess I'm guessing from one of the offers, there's practically a 600k earning threshold
3:24 Caller: that's near guaranteed for you currently.
3:26 You: I don't know if I'd call it guaranteed.
3:29 You: It's based on the fund performing well, the PE fund, and then the carry component of that fund, which would come to me.
3:32 Caller: Yeah.
3:36 Caller: Okay. No.
3:39 You: So do you know how the PE lifecycle works?
3:43 You: Okay.
3:45 You: So fund manager raises a bunch of money. They use that to invest in private companies.
3:51 You: They apply improves, financial, operational, etc., to raise the earning capacity,
3:55 You: raise the earning capacity of the company. And then they sell that company, I believe,
3:59 You: for the same or higher multiple that they bought it. So you buy a million dollar company
4:03 You: for a 10x multiple for you. So suppose, I'm company earning a million dollars. You buy a
4:06 Caller: Um.
4:08 Caller: Mm-hmm.
4:11 You: 10x multiple, that's $10 million you're paying for the company. You improve the company
4:14 You: so that you get it to earning $1.5 million and you take, let's say, six years to do it.
4:20 You: And you sell that company for effectively $15 million. So you realize over the
4:25 You: course of six years, a $5 million return. Some portion of that return will go to the fund
4:30 You: fund holders. The remaining portion is then split between management fees and carry, the portion
4:36 Caller: Okay.
4:36 You: that goes to the fund manager. So the carry portion, think of it as a bonus pool, but in this case
4:41 You: realized over a six-year stretch instead of every year, unlike a hedge fund. So that's the part that I'd be
4:43 Caller: Mm-hmm.
4:46 Caller: Okay.
4:47 Caller: Okay.
4:48 Caller: Okay.
4:48 You: trying to model. And again, the figure is based off of the fund manager's projections. So that's something
4:54 You: I'm still trying to fuss out how that compares with the reality and how it's rate
4:59 You: sensitive, the willingness for buyers for these kinds of businesses in this space, how AI impacts
5:04 You: it all. There's a lot of uncertainty. To take away that uncertainty is to simply beat the number
5:06 Caller: Yeah.
5:09 You: and the headline number is 600,000 is that, I recognize it's higher than the 400 you submitted
5:16 You: before. I believe it's still within the range, Elliott's 400 to 700,
5:18 Caller: Mm-hmm.
5:19 Caller: Mm-hmm.
5:20 You: unclear if they're willing to go that far from my profile.
5:22 Caller: Mm-hmm.
5:24 Caller: Yeah.
5:24 You: Thank you.
5:26 Caller: So what I would say is with Elliot, we can let them let them know.
5:26 You: Thank you.
5:27 You: Thank you.
5:30 You: Thank you.
5:35 Caller: And obviously let them know that this is not you saying that you would want a higher number of sorts.
5:39 Caller: Obviously, the conversation with Brett and everything will pretty much carry most of the weight.
5:45 Caller: But we can let them know.
5:47 Caller: And with that, they could pretty much have a sense of, because they need to put a higher number in front of you.
5:54 Caller: They could probably do that, just to essentially kind of close the process with you.
5:59 Caller: So I'll have a chat with Ben.
6:00 You: Thank you.
6:02 Caller: Let me see if Ben is keen on.
6:04 Caller: Ben is keen on that. If Ben's not, then, because it is his client, he would know best practice
6:10 Caller: method of going to gym and kind of sorting that out with them. But I think with that in mind,
6:16 Caller: they might not obviously end up at 600K, but they might come back and say, look, Jed, we really
6:21 Caller: like you, and we'd really want to close you. We'll move the number higher. Does this number
6:27 Caller: look better for you? It's probably not the 600K that you might be, well, not guaranteed, but more
6:30 You: Thank you.
6:33 Caller: and the sense of might be projecting, but with the thought of them saying that this is the number
6:39 Caller: that we think we can give to you now and there's obviously growth and earning potential that
6:43 Caller: will happen in the future, it might be likely that they could potentially guarantee you that
6:48 Caller: you'd hit a point where you're earning close to 600K or a number very similar to 600K in a specific
6:55 Caller: period of time. So if that's the case would...
7:00 You: and the hedge fund is the PE fund carry pays out with every sale of a company.
7:03 Caller: Yeah.
7:05 Caller: Yeah.
7:05 You: So companies tend to go in waves or cohorts.
7:07 Caller: Yeah.
7:08 You: So it basically means, for lack of a better term, a super bonus, every four to six years.
7:15 You: Elliot, at least to my understanding, pays a bonus, maybe not a large one, certainly not always a small one, every year.
7:22 You: So that's, it's a structural difference, I guess. This is the best way to describe it.
7:30 You: Do you have any hints on breath in tension?
7:33 Caller: with us. I don't think it's going to change much in the nature of your conversation
7:37 Caller: tomorrow. So just leave that with us. I'll speak to Ben and see what his thoughts are.
7:41 Caller: And potentially, so Brett's intention is to discuss with you
7:49 Caller: IP, the kind of IP measures that they can implement to allow you the kind of
7:54 Caller: brain that will let you be an independent researcher who developed their own AI
8:00 Caller: toolings on the side or outside of work, just to kind of
8:00 You: Thank you.
8:03 Caller: give you the relative freedom that you need.
8:05 Caller: Eli will be focusing on the scope beyond just AI-S-B-L-C,
8:11 Caller: what the next five to ten years could look like for you.
8:15 Caller: And then that will be the combination of their conversations with you.
8:18 Caller: But at the same time, it's obviously kind of like a odd phrase that is final.
8:23 Caller: You'll be in their office, in their building meeting with some of the people there.
8:29 Caller: So Trees is as pretty much kind of the closing chapter in your interview.
8:30 You: Understood. And then I said you, whenever I sent you, whenever I sent you them, whenever I sent you them,
8:33 Caller: with them. After that, we'll catch up with Jim and see their thoughts and likely.
8:37 Caller: And we have let them, we are made them aware about your offer situation.
8:41 Caller: So chances are we'll be this week or next week that we find out what they're
8:45 Caller: so far and we'll proceed likely end of this week since we've let them know that you do
8:50 Caller: need an answer fairly quickly.
9:00 You: that should when should I tell them to expect the call or what understood okay
9:03 Caller: So I think that will be decided after. It was just Jim told us to let you know in advance so that you have them ready so that there's a quick turnover should that happen.
9:14 You: so I suppose Wednesday at the earliest or potentially Tuesday afternoon
9:19 Caller: Yeah, perfect. All right, leave that with me. Let me catch up with Ben.
9:23 Caller: Yeah, best of luck tomorrow. In terms of questions that you're looking to ask, I think the main focus should be to get the questions that you want answered answered.
9:30 You: I'm going to be.
9:32 Caller: Like, don't worry about the tone of the questioning. What you want to know is whether they're right for you.
9:32 You: You know,
9:33 You: I'm going to
9:35 You: I'm going to
9:37 You: you know,
9:38 You: I don't know.
9:40 You: I don't know.
9:40 Caller: This whole time, we've pretty much focused on making sure that they see you in the way that you want them to see you and how we feel you should be seen.
9:41 You: So,
9:42 You: you know,
9:43 You: and
9:44 You: you know,
9:45 You: so
9:46 You: I'm
9:47 You: and
9:48 You: I'm
9:48 Caller: But now it's about closing the chapter specifically, almost in a selfish kind of light, whereby you need to know how this is the best fit for you versus the other opportunities that you have in line.
9:50 You: you know
9:51 You: I'm
9:52 You: and
9:53 You: I'm
9:55 You: I'm
9:56 You: Thank you.
9:58 Caller: Elliot is a very serious about candidate experience.
10:02 Caller: They want you to have the best experience, whether you have, whether you land the role or not.
10:07 Caller: And part of it is essentially being open in the kind of questions that you need to know an answer
10:12 Caller: of to make sure that you make the informed decisions on whether you're going to say yes or no.
10:17 Caller: So she's tomorrow as the day you can ask almost like whatever you want,
10:23 Caller: that will pretty much get you to a point where you're feeling confident enough to see.
10:26 You: Understood. Thank you, Graham.
10:28 Caller: say, okay, I know enough to make an informed decision, okay?
10:33 Caller: No worries. All right. Thanks for your time, Jit. Catch up too.
10:36 You: Take care.