ENTERPRENEURSHIP AT THE CARUTH INSTITUTE

Caruth Graduate: Paul Lee, Cox MBA ’03

After working for several years on M&A transactions and debt and equity financings for a variety of industries – including energy, technology, and manufacturing – Paul Lee, Cox MBA ’03, felt the need to enhance his financial and general management skills. He enrolled in the full-time MBA Program at SMU’s Cox School of Business, where a pioneering venture capital course sharpened his skills while broadening his perspective on the world of high finance.

Why did you choose to attend the Cox School?

The small class size and ability to work closely with professors on projects was quite appealing.As a Dallas native, the Cox School made great sense to me because it afforded me the opportunity to expand my network of business and civic contacts in a town that is likely to be my long-term residence.I was also fortunate to begin working with my current employer, Pioneer Natural Resources, at the start of my last semester in the MBA program.

Which Caruth courses did you take, and who were your professors in those courses?

I was one of seven MBA students who participated in the first offering of the Venture Capital Practicum course.Jerry White and John Terry were the professors.

Why did you take the Caruth course?

The Venture Capital Practicum was a very unique opportunity to work with existing private equity funds and lend an analytical and thoughtful mind to their current transactions.I worked with Capital Southwest on several transactions, one of which resulted in an investment by the Cox MBA Venture Fund.Taking this practicum was an experience unlike any other because I was able to conduct due diligence, value the target investments, and ultimately recommend an investment opportunity. The practicum affords students the unique opportunity to commingle theory with live transactions.

What were the most important skills you acquired and lessons you learned in the Caruth courses?

I gained an understanding of the principal investment points of view versus the investment banking middle-man view.In addition, I learned the value of clear and concise communication, as I had to make presentations to the boards of directors of the Cox MBA Venture Fund and of Capital Southwest.

Thanks to the structure and format of the Practicum, I also learned the importance of communicating the value proposition associated with the investment – whatever the opportunity – and identifying how the potential investment fits with the overall investment strategy of the fund.I already had several years of experience in valuing enterprises and investment opportunities as well as helping management teams execute their business plans. But representing the buy-side perspective was a new and welcomed experience for me.

What are your entrepreneurial goals?

I hope to start my own company some day.As director of Corporate Finance for a large, publicly traded company, I’ve gained tremendous experience on how to implement proper corporate finance decision making to benefit both stockholders and bondholders. Moreover, I’ve gained critical insight into the successful operations of a large company.I plan on leveraging my experiences from Pioneer and investment banking and raise capital to form my own company.

What advice would you give to aspiring entrepreneurs today?

Organization is paramount.Continually build out your network. Surround yourself with people smarter than yourself and with diverse backgrounds and different opinions.Be quick to listen and slow to speak.Know how to clearly communicate your strategy and value proposition to audiences of all levels of sophistication.If presentation skills are a weakness, seek out help quickly and start working on that.Find a trusted mentor or two who will poke holes in your strategy.Be willing to change and explore new avenues for your company.Have fun!

Education BBA, The University of Texas at Austin

MBA, SMU Cox School of Business

Before Cox Mergers and Acquisitions Analyst, UBS

Caruth Courses Venture Capital Practicum

Today Director of Corporate Finance, Pioneer Natural Resources