Andy Hagans: Welcome to the Alternative Investment Podcast. I’m Andy Hagans, and today we’re talking about private equity and a unique private equity approach from a very unique family office. Joining me today is Rami Cassis. Rami, welcome to the show.
Rami Cassis: Thank you, Andy. Thanks for making the time.
Andy Hagans: Before we even get into private equity, anyone who comes on with a family office, that’s always where it starts. It’s always so interesting. DJ Van Curren— we’ve had him on the show— he has very specific rules for if you consider yourself a family office or not. I would say, as someone who’s not a family office, I think it’s something a lot of us aspire to, right? So we always want to hear, how did it happen? How did you come to be operating your own family office?
Rami Cassis: I’ll probably start off by saying I am not the traditional family office, and I’m happy to talk about what a family office typically looks like. But in answer to your immediate question about how I came to build my own family office, really, I’ve developed enough assets over the period of time that I’ve worked. I’m 54 this year, and I’ve acquired a number of assets that I have the autonomy to run and continue to do more deals using my own funds. One of the things that differentiates family offices from other investment vehicles is that they tend to use their own funds and have the autonomy to decide for themselves how to manage those funds.
The very short answer is, I’ve been working in a private equity type environment using my own funds for about 15 years, and over time I’ve managed to build up enough assets and liquidity to be able to call Parabellum Investments my own family office, even if it’s on the very lower end of the scale. In terms of family offices, they start at around $100 million in assets and go up to several billions, as you know.
Andy Hagans: That’s funny that you and I are aligned exactly on that because I referenced DJ Van Curren. He’s founder of the Family Office Real Estate Institute, and he references $250 million as his point. I’m like, well, maybe, but internally, we all kind of feel like personally, at least $100 million is a pretty big deal, right? If I get to the point where I’m managing $100 million in private equity money, I think I’m going to call myself a family office at that point. So not to argue with DJ, but I’m actually with you, Rami. For me, I’m going to agree with that as a threshold. What’s your background though? Is it in real estate or in operating businesses?
Rami Cassis: Not at all. There’s probably quite a lot to talk about. I started life studying engineering in mathematical physics and worked in industry for about 15 years. I worked in oil and gas for 10 years with a company called Schlumberger, and that took me all over the world. Then I got out of oil and gas and worked in business advisory with KPMG on the business consultancy side. Then I went back into line management with Atos, where I led Atos in the UK and part of Europe. The first 15 years of my working life were spent in industry and were really the foundational years that taught me how to run a business, how to run a P&L, how to lead teams, and how to lead businesses.
In 2008, I resigned from corporate employment and did my first deal. It was a tiny business in the north of England that was scanning checks and old credit card vouchers we used to have before chip and pin. That was a business with 15 employees, turning over about a million dollars and losing $300K. I remember it vividly. I spent quite a lot of time turning the business around and then managed to grow it by acquisition over the course of the coming years. So, if you fast-forward to the last 10 to 15 years, my professional life has been buying lower mid-market firms in a variety of sectors: enterprise software, medical services, pharmatech, and potentially mining. I act as the chairman overseeing and supporting the CEOs of seven businesses, all in different sectors, all with their own management teams, with a view to scaling these companies and driving organic growth at the same time.
Andy Hagans: No, it’s interesting. I think private equity, which we’ll talk about today, can have a bit of an image problem. It never has with me, though, because some deals go well, some don’t, but there’s always change in the economy. Companies grow, go bankrupt, hire, and do layoffs. To me, private equity is almost beside the point. People might look for scapegoats in certain situations, but private equity is a combination of capital and entrepreneurship. Capital comes in for you to buy or invest in a company to be a chairman. You need the capital to acquire a company, and you don’t want something too small. But the entrepreneurial half is you’re not just buying a company, you’re unlocking value, right? If that company was totally successful and optimized, you wouldn’t buy it. It’s almost like flipping houses or a makeover. You see the potential, you purchase it, then enhance the operations. Do you think that’s the right way to look at private equity?
Rami Cassis: I think it’s a very healthy way to look at private equity. We should talk about the differences between private equity and family offices. The fundamentals of private equity are exactly as you described. However, practically, it’s an industry dominated by individuals with banking, accounting, or legal backgrounds. Those professions are admirable, but they tend to focus on looking at businesses under a specific lens. What private equity could benefit from is greater professional diversity in the roles and backgrounds of individuals within those firms.
Private equity often lacks real-life experience in dealing with difficult meetings with clients or employee disputes, or relating and empathizing with the employees of their portfolio companies. They leave that up to the managers, but the CEOs invariably need support. Managing a CEO is lonely. It’s where a chairman like myself or a board steps in because there’s no one beside you on the org chart, and the pressure and stress of that job are enormous.
Andy Hagans: Absolutely. And just as management teams have strengths and weaknesses, so do CEOs. CEOs need development, just like management teams do. Private equity typically manages through board meetings, and the answer isn’t always another investment or acquisition. Often, these acquisitions, if not integrated properly, may turn the company into a green-eyed monster. There’s also the human element—CEOs and employees know the company is private equity-backed and that it may be sold in 3, 4, or 5 years, which is destabilizing for both employees and clients. That timeline, often dictated by LPs, drives many behaviors as they get toward the latter stages of that time horizon.
Rami Cassis: Exactly, Family offices differ because they’re usually not beholden to that strict time horizon dictated by LPs. They use their own funds, which brings a different emotional and practical focus to the investment. The overarching goal of most family offices is wealth preservation, often driven by a mandate not to lose money. There’s an old saying: “It takes two generations to lose the wealth that was made by their great-grandparents.” So, the mindset is often more defensive. The problem with that defensive approach is that it can paralyze the next generation into either taking too little risk or making poor investment decisions. This can lead to overly conservative investments, like putting money into government bonds, and it drives very defensive behaviors, which can be on the opposite end of where private equity and VCs operate.
Andy Hagans: Yeah, I hear what you’re saying, and I think that’s why family offices have that reputation for being more conservative. But it sounds like with Parabellum, you’ve found a middle ground. You’re deploying your own money, you’re comfortable taking risks, but you don’t have that external pressure to flip investments within a certain timeframe. So, you’re not forced into decisions by timelines.
Rami Cassis: Exactly. I don’t have external investors pushing me to hit an exit by a certain date, and my appetite for risk is probably higher than most traditional family offices. My background in operations—having spent years on oil rigs and turning around businesses—gives me confidence in both running a business and providing meaningful support to CEOs. If necessary, I can step into the CEO role, though I don’t do it lightly. My focus is on constructively supporting the CEOs, because no matter how capable they are, they all need some level of support.
Andy Hagans: Right, and that’s a big difference. It sounds like you’re combining the entrepreneurial mindset of private equity with the long-term, patient capital approach of family offices. You’re in it for the long haul, and that’s reassuring for employees and CEOs because they know you’re not just trying to flip the company in three years.
Rami Cassis: Yes, that’s a key difference. I’m not trying to cover my back or push for an exit just to please investors. I’m more focused on building long-term value and making sure the company is sustainable. The issue with many private equity firms is that they tend to be very focused on short-term gains, and that leads to decisions that may not always be in the best interest of the company’s long-term health. It’s about more than just cutting costs or hitting quarterly targets.
Andy Hagans: Exactly. And that’s where I think private equity can get a bad rap. But I think there’s a lot of value in combining capital with entrepreneurship, especially if the incentives are aligned. When you’re investing in a business and committed for the long term, everyone’s rowing in the same direction. There’s no conflict of interest between employees and owners.
Rami Cassis: That’s right. And I’m also more willing to take commercial risks because I’m not operating with a fear of covering my back. Too often, corporate governance and compliance rule the day, especially in public companies, and even to an extent in private equity. But in my case, I’ve lived through difficult board meetings, I’ve run public companies, and I’ve been in the trenches of private equity. My approach is different because I’ve been on both sides of the table, and I know what’s needed to drive real value beyond just the numbers.
Andy Hagans: It’s refreshing to hear. And I think there’s something to be said for having skin in the game, too. When it’s your own money on the line, you’re naturally more careful, but you’re also more committed to making it work for the long term.
Rami Cassis: Absolutely. Having skin in the game is crucial. When it’s your own capital, your approach is different. You’re not just managing someone else’s money with a plan to exit in five years. You’re thinking about what’s best for the business in the long term. That’s why I also believe private equity firms could benefit from bringing in more diverse perspectives. The industry tends to be dominated by bankers, accountants, and lawyers, who often manage through the numbers. But businesses aren’t just numbers. They’re made up of people, and having more professionals from backgrounds in HR, marketing, or operations would provide a more balanced approach to managing portfolio companies.
Andy Hagans: Totally agree. It’s not just about financial engineering; it’s about leadership, empathy, and vision. And, frankly, it’s also about giving CEOs the support they need. It can be lonely at the top, and they need someone in their corner who understands the operational and human side of running a business, not just the financial side.
Rami Cassis: Exactly. Leadership is often expected solely from the CEO, but who’s supporting them? Who’s giving the management team something to look forward to beyond just hitting the numbers for an exit? That’s where I come in. It’s not just about governance or making the next acquisition. It’s about helping the business grow sustainably, and that takes long-term thinking and understanding the human element of business.
Andy Hagans: And that’s what sets Parabellum apart, right? You’ve blended the best of private equity with the patience and flexibility of a family office, but without the ultra-conservative mindset that can stifle growth. That’s a unique position.
Rami Cassis: Yes, I think so. We’re in a bit of a gray area between private equity and a family office. I’m deploying my own funds, so there’s no external pressure, and there’s no fixed exit horizon. But unlike many family offices, I’m not just preserving wealth—I’m actively generating it by taking calculated risks. And because of my operational background, I can provide real, hands-on support to the companies I invest in.
Andy Hagans: That’s a great model. Where can our audience go to learn more about Parabellum Investments or follow your thought leadership?
Rami Cassis: They can visit my website at parabelluminvestments.com or find me personally online. I’m not as active on social media as some, but for those who are interested, my insights and strategies can be found there.
Andy Hagans: We’ll make sure to link it in the show notes. Rami, thanks again for coming on and sharing your unique perspective. It’s been a pleasure talking with you.
Rami Cassis: Thanks, Andy. It was great to speak with you.
