#17 - Launching a Traditional Search Fund: Long Horizon Partners

In this episode, we have with us two extraordinary individuals, Rafaell Caldas and Zach Krumholz, co-founders of Long Horizon Partners. These ambitious Columbia MBA graduates took the leap immediately after graduation and plunged headfirst into starting a traditional search fund.Zach, a Yale alum, comes with a rich background that comprises leadership experiences, a stint in financial analysis, and an in-depth understanding of investing. Hailing from South Florida as the fifth of six children, his journey has led him from the tennis courts of Yale to the intense pace of Goldman Sachs and Crestview Partners before making his way to Columbia Business School. Here, destiny led him to meet Rafaell and forge the foundations of Long Horizon Partners.Rafaell, on the other hand, a Rio native and a mechanical engineer by trade, brings his own distinct flavor to the table. After acquiring professional experiences with world-class organizations like Boeing, Shell, and Bain, he, too, found his way to Columbia University for an MBA.Together, they share their vision of identifying growth-oriented companies with high resilience, barriers to entry, and returns on investment. They speak about their future plans as co-CEOs, their commitment to their chosen business, the cultural perspective they bring to the table, and their preferred company culture. Key QuotesThe Impact of Small Businesses: "So my godfather had a small restaurant. My older brother, as I mentioned, has started his own real estate brokerage firm. And so we know the impact that a small business can have in one's life and in the community and in people's careers."— Rafaell Caldas 00:07:57-00:08:13Learning from the Field: "I think it was the first time that I realized that when you're sitting on a desk, and you're designing something, or you're coming up with ideas, you can never truly appreciate how hard it is to implement those ideas. Until you go down to the factory shop like I had to do and talk to the people, the operators in the factory and really understand that your drawing doesn't make sense or the sequence of assembly that you put together. It's not feasible."— Rafaell Caldas 00:18:11-00:18:35Growing Leaders: "The most exciting thing about leadership to me is seeing people grow."— Rafaell Caldas 00:25:00-00:25:04Timestamps[00:00:46] Rafa Caldas: Engineer turned management consultant and entrepreneur.[00:05:25] Learning from cultural diversity strengthens leadership abilities.[00:10:12] Ideal work culture values communication, psychological safety, learning, development, meritocracy, celebration, and fun.[00:12:27] Qualities for good company acquisition: growing, resilient, barriers, recurring revenue, leverage, high return[00:17:53] Learning from engineering and consulting experiences.[00:20:21] Merging companies face culture and process challenges.[00:24:18] Exciting deal, family backgrounds, leadership excitement.