An Interview with Aman Kapadia
During the 49th annual International Conference, I was lucky enough to catch Aman Kapadia, founder of Akaris Global, for a short interview after his seminar. Kapadia started as an undergraduate at Princeton University and graduated magna cum laude in 1998 with a degree from the Woodrow Wilson School of Public and International Affairs, now simply known as the School of Public and International Affairs, or SPIA. After Princeton, Kapadia attended Harvard Business School, worked for several investment firms, such as Fir Tree, and eventually founded Akaris Global, in 2018. During our interview, he shared some valuable insights gained from a rich career trajectory, including both academic and professional experiences.
During his time at Princeton, Kapadia served as the President of Business Today, which provided a unique platform for developing management skills, organizational acumen, and executive function. Back then, Business Today was much smaller than it is today, and Kapadia’s time as president was characterized by hard work, camaraderie, and the opportunity to interface with executives. This exposure to business leaders left an indelible mark, fostering a love for business and shaping his career choices.
Following Princeton, Kapadia spent two years at McKinsey, an experience likened to a business school education in itself. The decision to pursue an MBA at Harvard Business School was driven by a desire to advance in the business world and eventually lead a company. Reflecting on the current perception of business school, Kapadia highlighted that he never hires MBAs. Instead, he values the apprenticeship model, where open-mindedness, receptiveness to learning, and a focus on practical skills often take precedence over formal education.
Kapadia spent 11 years at Fir Tree Partners, a large multi-strategy value fund that invested across various asset classes globally. While the experience was enriching, the decision to start Akaris Global was motivated by a desire to implement the best practices from Fir Tree and embark on an entrepreneurial journey.
Akaris Global focuses primarily on public equities, occasionally venturing into public credit and short securities. With a portfolio consisting of 10-15 companies, the firm prioritizes "structural winners" – companies with a secular growth outlook, long runway for growth, high margins, and a high return on capital. The investment philosophy centers around reinvesting capital for sustained success.
Discussing the evolving macroeconomic landscape, Kapadia notes the significant impact of low-cost capital over the past 15 years. This environment has allowed businesses to thrive without necessarily turning a profit, leading to the creation of innovative yet financially unsustainable ventures. Looking ahead, he predicts a shift as the cost of capital increases. In this increasingly unforgiving environment, companies will most likely be required to generate cash to attract investments.
In summary, Aman Kapadia's journey from Princeton to founding Akaris Global reflects a pragmatic approach to business and investment. His experiences at Business Today, McKinsey, and Fir Tree Partners have shaped a focused investment philosophy. Kapadia's insights on the changing macroeconomic landscape underscore the importance of financial sustainability, and this concise yet insightful glimpse into his career offers valuable lessons for professionals aspiring to follow similar career paths.