After reading the guest commentary from Ms. Susan Sheu, I’d first like to speak more generally about this trend of individuals and groups irresponsibly spreading misinformation meant to manipulate voters and influence political opinions, with little to no prior research or knowledge on certain topics. I am a firm believer and strong advocate of our democratic process, which often includes intense discussion, debate, disagreement and criticism.
So, I’m going to give you the informed perspective, and the fact-based reality, which you can then use to analyze the approach and intentions of those that wish to influence you with poorly researched narratives aimed to manipulate.
Ms. Sheu’s recent commentary singled out two of the more than 100 investments Bison Capital has made since 2001 and presented them as my “track record.” She did not contact me before publishing, and her research was limited to Reddit posts and websites. I welcome scrutiny, because debate, disagreement and criticism are what our democratic process is for. But voters deserve scrutiny grounded in how these businesses actually work and the facts and circumstances around our investments.
Electronic monitoring. The company we invested in makes software and hardware. Its customer is the government, not the offender, and it makes no enforcement decisions. What it offers is an alternative to incarceration. A person who stays out of jail keeps their job, their family and their housing, and the city, county or state saves millions of dollars.
Los Angeles County is one of the largest electronic monitoring customers in the United States. Ms. Sheu votes on endorsements for the LA County Democratic Party. If she wants the county to end the practice or provide the service itself, she can support candidates who will do that.
Financial wellness. This business is employer-sponsored. The company works with employers to give employees tools and relief that help them avoid bankruptcy and rebuild their credit. Keeping someone out of financial disaster keeps them out of potential poverty.
I would love for cities and states to provide these services free of charge. They don’t, and they can’t: they lack the resources, the technology and the funding. So what is the alternative? Sending people to jail or financially ruining their lives?
The full record. Two investments are not a track record. Since 2001, Bison Capital has created more than 20,000 jobs and protected another 30,000 from being lost. We have invested in healthcare, mental health, long-term care, health insurance, court systems, renewable energy, recycling, logistics and seismic protection technology, among other fields. I am accountable for all of it, and our community impact should be measured across all of it.
Our investments are complicated. They require hands-on involvement, and they usually come with a regulatory, legal or financial problem we were brought in to fix.
Our purpose led investment thesis involves improving the outcomes for everyone, for example – How can we improve the timelines for judicial processes? How can we improve mental health outcomes in facilities? How can we do a better job of long-term care and hospice? How can we keep someone from incarceration for which societal costs are astronomical? How can we keep someone from financial distress or bankruptcy? How can we improve financial wellness for those who need it most? How can we improve efficiency of solar panels? How can we reuse automotive components? How can we take non-renewable resources and make them renewable? How do we make last mile delivery as efficient as possible to avoid the environmental impacts? How do we ensure people with pre-existing conditions get access to health insurance? These are just some of the questions I spend my time trying to answer.
Our investors include CalSTRS (the California teachers’ pension fund), General Electric, Northwestern Mutual, TIAA, Prudential, and numerous state pension funds and college endowments. Some have invested with me for more than 25 years. They would not still be here if my record needed to be “brought to light.”
I have always been open about the fact that our strategy involves challenging situations, and I will stay that transparent. Fixing difficult businesses is the experience I would bring to the challenges Santa Monica faces now.
If Ms. Sheu would like to sit down for a recorded interview about any of our investments, I am available immediately, and she is welcome to publish it in full. Until then, I’ll leave readers with two questions:
Do we want low-level offenders incarcerated with no other options?
Do we want people who are struggling financially pushed into further ruin, without the tools to recover?
My answer to both is no. I hope yours is too.
We have an important election on November 3rd. Let’s get serious about the challenges in front of us, have honest and well-intentioned discussions about how to address them, and right the ship together.
Doug Trussler