This week we continue our conversation with Tim Kelly, a 30+ year veteran of private equity and capital markets. Since retiring as a senior investment Partner with Adams Street Partners, Tim has completed his Ph.D. in Organizational Psychology. His focus is what investors, LPs, GPs, and capital market participants can learn by applying new perspectives on people, culture, decision-making, and performance. Second of two parts – View part one
The Lead Left: Anyone paying attention to presidential primaries this year would agree with that.
Tim Kelly: In a comical sense, people are as irrational as the moth that flies into a candle flame. We commonly use cognitive shortcuts, or heuristics, when we make decisions. We rely on past experiences, our perceived judgment, and other factors to arguably inform our decision whether to invest or not, and at what price. But, many investment committees display similarly common techniques and, yet, experience varying results.