| TZP is named after the first private equity dealmaker in history -- the biblical figure Joseph.
As chronicled in the Book of Genesis, the Egyptian Pharaoh has several dreams that he is unable to interpret. After exhausting his available advisors, he offers Joseph the opportunity to solve his quandary. Pharaoh describes his visions of seven fat cows being swallowed by seven skinny cows followed by seven full sheaves of wheat swallowed by seven skinny sheaves of wheat. Joseph explains that the dreams portend seven years of great abundance followed by seven years of severe famine. He also offers Pharaoh a plan for dealing with the upcoming events. He suggests that Pharaoh collect into storehouses the excess wheat and other crops during the seven years of plenty so that there would be reserves to sustain the people during the years of famine.
Pharaoh rewards Joseph’s creativity and vision by appointing him viceroy with wide discretion to implement the plan. As part of Joseph's coronation, Pharaoh gives Joseph an Egyptian name "TZofenat Paneach” (Genesis 41:45), which translates into “revealer of hidden things.”
When the years of plenty arrive, Joseph carries out his economic plan and the storehouses are filled to capacity in time for the famine. When the famine arrives, it is so severe that the Egyptians exhaust all their savings purchasing food from Pharaoh’s storehouses. Desperate for sustenance, the Egyptian people offer to become slaves to Pharaoh in exchange for food. Joseph offers an alternative plan. "Here is seed for you, sow the land. And it will be at the ingatherings that you will give a fifth to Pharaoh and the four parts shall be yours.” (Genesis 47:23-24). The fifth - or 20% - represents the first recorded carried interest in history.
We believe that "revealing hidden things" in due diligence and unlocking value in a business post-investment are critical skills for a private equity firm. We also believe that the creativity demonstrated by Joseph in developing the first carried interest in history represents another valuable quality. Therefore, we selected the beginning letters of TZofenat Paneach as the name for our firm. |