How NFL Legend Steve Young Built a $10 Billion Fund | The Deal

Steve Young, the NFL Hall of Famer, discusses his transition from professional football to private equity and co-founding HGGC, a $10 billion firm. He reflects on the initial challenges of shifting careers, emphasizing the importance of humility and starting from the ground up, much like in sports. Young shares how he initially tried to downplay his athletic fame when meeting investors, but eventually realized it could be a useful tool for connection, as exemplified by an investor who asked to play catch. Young explains his motivation for entering private equity stemmed from his law school studies and a board position at PowerBar. This led him to meet his long-time partner, Rich Lawson, and together they built a business, which eventually led to sponsorship from Bain Capital to start their own private equity firm. He contrasts the early days of private equity with today's highly competitive landscape, noting the significant growth in the number of firms. When discussing the concept of imposter syndrome, Young admits that despite his accomplishments, he still sometimes feels awkward or out of place. He attributes this to his own insecurities, which he believes also fueled his drive as a football player. He emphasizes the importance of surrounding himself with smart people, acknowledging that his success is not solely dependent on him. Young draws parallels between the pressure of a Super Bowl huddle and a boardroom meeting, highlighting that both require clear communication and strategic execution. He references his former coach, Bill Walsh, and his philosophy of winning through shared experiences and mutual love among team members. This concept of deep connection and shared purpose, Young believes, is crucial in business as well. He elaborates on his ability to connect with people on a deep level, attributing it to his own vulnerability and an intense interest in human behavior, honed by years of observing it on the football field. He describes football as a game with immediate feedback, where human behavior is transparent and tells the truth. The conversation then shifts to the commonalities between sports and business, particularly the concept of failure. Young and the interviewer agree that athletes, accustomed to facing and overcoming failure, are well-suited for the business world, which is also a "sport of failure." He emphasizes that while failure is inevitable, the ability to learn from it and get back up is paramount. In a segment called "Asking for a Friend," Young offers advice to someone who has bought basketball teams. He stresses the importance of treating one's position as "highly fireable," even when secure, to avoid complacency and hubris. He advises against acting with arrogance, as it can alienate others. Young recounts a pivotal moment with his former coach, Mike Shanahan, who empowered him by flipping the script and asking Young to take care of him, rather than the other way around. This empowerment led to acceleration and a feeling of being unstoppable. He advocates for empowering individuals in business to take risks and learn quickly, iterating as needed. He then discusses two influential figures from his football career: Eddie DeBartolo and Bill Walsh. DeBartolo, he notes, was a pioneer in treating players as partners rather than chattel, fostering a sense of shared purpose and accountability. Walsh, on the other hand, was a visionary coach who not only developed the West Coast offense but also meticulously documented and shared his knowledge, creating a tactical advantage for his proteges for years. Young describes Walsh's generosity in handing over his proprietary knowledge, even to those who would become competitors, as a form of abundance. Young applies this concept of abundance to private equity, suggesting it can be more than just transactional. He believes that businesses can be built on a foundation of partnership and shared goals, leading to lasting legacy rather than just zero-sum outcomes. He emphasizes the need for aspirational thinking, daily commitment, and a belief in finding ways to create abundance together. Finally, Young reflects on his father's advice about having a dream and a plan. His own dream for the future is to live to 110 years old and to "pay it forward" to his children and others. He expresses his admiration for the interviewer and Alex, suggesting a shared perspective and a desire for continued connection.