The investment chief at a $70 billion private-equity behemoth explains how the rise of Amazon and Uber forced him to make a 'scary' change to his strategy

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Jonathan Coslet, CIO of TPG Capital, explains how he changed his investing approach in response to the rise of Amazon and Uber.

Jonathan Coslet, chief investment officer of the $70 billion private-equity behemoth TPG Capital, has been at the firm since its founding in 1993.

It's a quandary that's faced many a successful investor as they try to stretch their outperformance across multiple decades. ."As good of investors as we may all be, there has never been a time when interest rates have gone from 12% to 2%.": "When we're in an environment like we're in today — where everyone is complacent, and everyone thinks the 10-year cycle will become a 15- to 20-year cycle — I'm trying to think about where I'm going to see inflections," he said."Today, the inflections are mostly driven by disruption, technology, demographic and social changes, and science and medical changes.

He continued:"But we have an example in Amazon, and we have an example, perhaps, in Uber. It will be a $100 billion company willing to lose more money than anyone else. That's really scary. We would've never done that 27 years ago."

 

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