I put up virtually no capital, just a limited guarantee that I’d feed the deficit of the loan if necessary to keep it current over a three-year perio… - Sam Zell

But by the end, we had raised over $1 billion. I think it was the largest fund of its kind at the time. We focused on turning around companies that had taken on excessive debt in the 1980s. We contributed our own capital in order to align our interests with those of our investors, and we didn’t charge fees on each acquisition like many leveraged-buyout firms did. Instead, we used the funds to share risk with our investors — and to share opportunities. We had a stated objective of holding our investments for ten to twelve years.

I remember this event so clearly because it was at this point in my career that I fully realized the value of tenacity. I just had to assume there was a way through any obstacle, and then I’d find it. This is perhaps my most fundamental principle of entrepreneurialism, and to success in general.

Some might see buying and creating value from others’ mistakes as a form of exploitation, but I see it as giving neglected or devalued assets, in any industry, new life. And often in my career I’ve been the only bidder for them — the last chance for a resurrection. I’m not claiming to be altruistic — just optimistic, and confident that I can turn those assets around.