A Man of Speed and Action:
- Justin Ishbia, the 46-year-old billionaire founder of Chicago-based private equity firm Shore Capital Partners, is a man of constant motion. Known for his quick pace and boundless energy, he navigates through a whirlwind of activities, from high-profile sports events to portfolio company meetings, all while maintaining a relentless focus on his firm’s growth.
- Ishbia’s schedule reflects his commitment to success, often blending business with pleasure, such as courtside seats at Bulls games, catered lunches with Forbes and top executives, and private flights to watch football games with old law school friends. His dedication to his work is evident in his round-the-clock availability, answering emails and texts promptly, regardless of the hour.
Shore Capital: A Speedy Success Story:
- Shore Capital Partners mirrors Ishbia’s rapid pace, sealing an impressive 801 deals between 2020 and 2023 in the healthcare-focused microcap investment space. Despite its relatively small size compared to giants like Apollo and Blackstone, Shore’s assets under management surged to $7 billion during this period, attracting investments from prestigious institutions like the University of Notre Dame and Sequoia Capital.
- Ishbia’s strategic approach to staying small in the vast private equity landscape has paid off handsomely. Shore boasts an average internal rate of return (IRR) of 53% on its 14 exits, nearly triple the average net IRR of U.S. buyout funds. This stellar performance has translated into impressive returns for investors, with exits multiplying their money by 5.5 times on average.
Investing in Main Street:
- One of Shore Capital’s key strategies is acquiring and consolidating small businesses across America, with a focus on mom-and-pop shops. These acquisitions, averaging around $15 million each, are then integrated into larger chains spanning various industries, from autism treatment clinics to bakeries and exterminators.
- Ishbia emphasizes a growth-focused approach, investing in technology, bolstering boards with industry experts, and expanding into adjacent markets. Despite the common perception of private equity firms cutting services and jobs, Ishbia highlights Shore’s commitment to growth, boasting a workforce of almost 35,000 employees and continuous hiring.
A Quiet Impact and Contrasting Fortunes:
- Despite his significant achievements, Justin Ishbia often operates in the shadow of his younger brother, Mat, the CEO of United Wholesale Mortgage (UWM) and a fellow billionaire. Mat’s prominence in the financial world, particularly in the mortgage industry, often garners more attention.
- However, Shore Capital’s impact on America’s economy is substantial, with its portfolio companies employing five times as many people as UWM. Ishbia takes pride in the role Shore plays in bolstering small businesses nationwide, pushing back against criticisms that private equity diminishes competition and raises prices.
- To Ishbia, Shore Capital represents an investment in “Main Street,” focusing on local businesses and communities across cities like Akron, Pittsburgh, and Birmingham. His firm’s approach of growth, investment in technology, and strategic acquisitions stands as a testament to the potential for success in the microcap investment landscape.
In a world where speed and agility often define success, Justin Ishbia and Shore Capital Partners continue to navigate the fast-paced realm of private equity, leaving a significant mark on the business landscape while focusing on sustainable growth and community impact.