“He understands Berkshire far better than any investment banker with whom we have talked and—it hurts me to say this—earns his fee,” Buffett wrote in 2004. Trott rose to become vice chairman of investment banking at Goldman Sachs and headed its Chicago office.
In 2008, Trott pulled off one of the most consequential deals in modern Wall Street history, negotiating Berkshire’s $5 billion investment in Goldman Sachs during the peak of the financial crisis, helping shore up the bank’s capital base and restore market confidence.
Waltons, Kochs
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’s funds, sold parts of their business to the private equity firm, or both.
Trott co-founded the firm with William Bush, previously a lawyer at Fulbright & Jaworski LLP. Other long-time partners include fellow Goldman alumni San Orr and Dan Jester. It continues to draw heavily on the bank for talent—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.
While other large private equity firms have moved away from reliance on one person, BDT remains largely synonymous with Trott.
That’s not deterring investors. BDT raised $9.1 billion for its third investment fund last year. Since the Weber deal was struck in 2010, the firm’s assets under management have grown to about $28 billion at the start of 2021, just shy of the $32 billion managed by Bridgepoint Group Ltd., which went public last month at a valuation of about $4 billion.
Trott owns at least 50% of BDT, according to the Bloomberg wealth index, and is estimated to have more than $1.7 billion personally invested in its funds.
Weber was the second BDT portfolio company to go public this year, following Krispy Kreme Inc.’s debut. BDT holds an 8.6% stake in the doughnut-maker. The grill maker raised $250 million, lower than expected, but the stock jumped 18% on Thursday.
The 11-year-old Weber stake illustrates a longer investment horizon than is typical in private equity. The firm’s 2009 fund has other active investments including in publicly traded Keurig Dr Pepper Inc., acquired through a deal with JAB Holdings’ Reimann family.
BDT has “a culture of being a sophisticated thought partner for family-run businesses,” Pritzker said. “That includes confidentiality. It’s a huge deal there—it creates a framework of trust.”
—With assistance from Heather Perlberg.
This article was provided by Bloomberg News.