Let’s start this meeting over, Mr. Schwarzman. You say, ‘Mr. Putnam, you’re the treasurer of Harvard University, and I’m starting the largest—what will be the largest—student loan lending business in the United States, and I’ve got you down for $20 million.’ Now, say that.” I said it. “That’s a great idea, Mr. Schwarzman,” he said. “I’m in for twenty.” He had read up on the company before I walked into the room and would not be convinced by me one way or the other on its merits. He just wanted my help in making a quick decision on how much to invest. “Now what you do is take your book, get on the train, go to New Haven, and see Mr. So and So at Yale, and say, ‘Mr. So and So, I’m raising money for the Student Loan Marketing Association, which is going to be the biggest lender to students in the United States. I’ve got Yale down for $15 million.’ Try that. See what happens. After that, get back on the train, go to Princeton. Ask them for $10 million.”
By the end of my university pitches, I had raised the better part of the $100 million, the money that founded Sallie Mae. Putnam gave me a lesson in raising money that would stay with me throughout my career as I raised fund after fund at Blackstone. Investors are always looking for great investments. The easier you make it for them, the better for everyone.
Stephen A. Schwarzman, What It Takes: Lessons in the Pursuit of Excellence
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