Trott\u2019s life runs through the Midwest. He joined Goldman Sachs after graduating from the University of Chicago, where he played varsity baseball as an undergraduate before securing his MBA from the Booth School of Business. He started as a stockbroker and then worked as a wealth manager in St. Louis, where he caught the eye of Hank Paulson, then manager of the bank\u2019s Midwest operations. Paulson, who would become the firm\u2019s CEO and later US Treasury secretary, tapped him to join the investment-banking group.<\/p>\n
Even after the move, Trott kept his focus on rich families, with Midwestern fortunes a specialty.<\/p>\n
\u201cI loved bringing the investing and investment banking disciplines together and soon realised the value added that I could provide, especially to entrepreneurs and the leaders of family-owned companies,\u201d Trott said in a 2011 biographical sketch for his acceptance into the Horatio Alger Association. \u201cIt didn\u2019t take long to realise that I had found my passion.\u201d<\/p>\n
Trott made a name for himself orchestrating a series of deals for Buffett\u2019s Berkshire Hathaway, prompting the Omaha billionaire to praise him in a letter to investors.<\/p>\n
\u201cHe understands Berkshire far better than any investment banker with whom we have talked and \u2013 it hurts me to say this \u2013 earns his fee,\u201d Buffett wrote in 2004. Trott rose to become vice chairman of investment banking at Goldman Sachs and headed its Chicago office.<\/p>\n
In 2008, Trott pulled off one of the most consequential deals in modern Wall Street history, negotiating Berkshire\u2019s $US5 billion investment in Goldman Sachs during the peak of the financial crisis, helping shore up the bank\u2019s capital base and restore market confidence.<\/p>\n
Waltons, Kochs<\/h3>\n
His Rolodex, though, extended far beyond Buffett. The Waltons, Kochs, Wrigleys and Pritzkers have all been linked to Trott, and many of these dynasties have invested in BDT\u2019s funds, sold parts of their business to the private equity firm, or both.<\/p>\n
<\/p>\n
Weber\u2019s successful IPO has been a bonanza for Byron Trott.<\/span>Credit:<\/span>AP<\/cite><\/p>\n Trott co-founded the firm with William Bush, previously a lawyer at Fulbright & Jaworski. Other long-time partners include fellow Goldman alumni San Orr and Dan Jester. It continues to draw heavily on the bank for talent \u2013 LinkedIn data show 28 individuals working for BDT who previously worked at Goldman. The company also has offices in New York, Los Angeles, Dallas, London and Frankfurt, and employs 157 people, according to a filing.<\/p>\n While other large private equity firms have moved away from reliance on one person, BDT remains largely synonymous with Trott.<\/p>\n That\u2019s not deterring investors. BDT raised $US9.1 billion for its third investment fund last year. Since the Weber deal was struck in 2010, the firm\u2019s assets under management have grown to about $US28 billion at the start of 2021, just shy of the $US32 billion managed by Bridgepoint Group, which went public last month at a valuation of about $US4 billion.<\/p>\n Trott owns at least 50 per cent of BDT, according to the Bloomberg wealth index, and is estimated to have more than $US1.7 billion personally invested in its funds.<\/p>\n Weber was the second BDT portfolio company to go public this year, following Krispy Kreme\u2019s debut. BDT holds an 8.6 per cent stake in the doughnut-maker. The grill maker raised $US250 million, lower than expected, but the shares jumped 18 per cent on Thursday and added another 10 per cent on Friday.<\/p>\n The 11-year-old Weber stake illustrates a longer investment horizon than is typical in private equity. The firm\u2019s 2009 fund has other active investments including in publicly traded Keurig Dr Pepper Inc., acquired through a deal with JAB Holdings\u2019 Reimann family.<\/p>\n BDT has \u201ca culture of being a sophisticated thought partner for family-run businesses,\u201d Pritzker said. \u201cThat includes confidentiality. It\u2019s a huge deal there \u2013 it creates a framework of trust.\u201d<\/p>\n