Driving Disruption: Rob Finlay Of Thirty Capital On The Innovative Approaches They Are Taking To Disrupt Their Industries

Thank you so much for joining us in this interview series. Before we dive into our discussion about disruption, our readers would love to “get to know you” a bit better. Can you share with us the backstory about what brought you to your specific career path?

Myjourney into CRE began at a young age, immersed in a family business that exposed me to various facets of the industry, from leasing to property management, construction, and development.

After gaining valuable experience, I ventured into Wall Street, where I identified a critical need in the market for streamlining the defeasance process. This realization led to the creation of Defeasance with Ease, which I successfully sold by the age of 36. Subsequently, I transitioned into property acquisition, laying the foundation for Thirty Capital. Alongside partners like Summit Partners, we established multiple businesses, leveraging our expertise to innovate and drive growth in the CRE sector. Today, Thirty Capital combines our deep understanding of real estate with cutting-edge technology and capital markets expertise to empower clients and investors.

What do you think makes your company stand out? Can you share a story?

Thirty Capital stands out in the CRE sector for several reasons. First and foremost, we possess a unique blend of experience spanning CRE, capital markets, data, and technology. This diverse expertise enables us to approach challenges with innovative solutions that transcend traditional boundaries.

One example that highlights our innovative approach is our response to the Jobs Act of 2015, which opened up retail capital for CRE syndicators. Recognizing the significance of this regulatory change, we launched Investor Management Services (IMS) to assist sponsors in navigating this new landscape. By leveraging our foresight and adaptability, we positioned ourselves as leaders in facilitating the transition to retail capital investment, driving value for both sponsors and investors.

You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?

Three character traits that have been instrumental to my success are an innovative mindset, resilience, and a commitment to continuous learning.

Innovative Mindset: Innovation isn’t just about technology; it’s about doing things differently. A prime example of this was my initiative to streamline the loan defeasance process with Defeasance with Ease. By recognizing a niche in the market and developing a more efficient solution, we transformed a complex task into a streamlined process, setting a new standard in the industry.

Resilience: Real estate is inherently cyclical, requiring resilience to navigate through market fluctuations. This resilience was evident during challenging times, such as the aftermath of the 2008 financial crisis, where our ability to persevere and adapt allowed us to emerge stronger and more resilient.

Always Learning: Continuously seeking new opportunities and learning from diverse experiences has been crucial. Whether it’s applying insights from a personal hobby to a business strategy, or recognizing market trends, the commitment to learning has enabled us to stay ahead of the curve and identify growth opportunities.

Each of these traits has not just shaped my career but also fundamentally influenced how I approach challenges and opportunities in the dynamic world of CRE.

Leadership often entails making difficult decisions or hard choices between two apparently good paths. Can you share a story with us about a hard decision or choice you had to make as a leader? I’m curious to understand how these challenges have shaped your leadership.

One challenging decision that stands out in my career was the choice of direction for TCAM, Tax Credit Asset Management.

TCAM was a company I started in 2008, and at a crucial point in its growth, we faced a decision between two paths. Some members of the management team wanted TCAM to become principals in transactions, while others advocated for a role as advisors. This decision was particularly difficult because there were perceived conflicts of interest between the two paths. Ultimately, I had to respect the viewpoints of my senior managers, even though I favored a different direction. This experience taught me the importance of relying on my team’s expertise and having a collaborative decision-making process.

Ok, thank you for that. Let’s now jump to the primary focus of our interview. Let’s begin with a basic definition so that all of us are on the same page. In the context of a business, what exactly is “Disruption”?

“Disruption” refers to a significant change that challenges and alters traditional business methods, models, and industry norms.

How do you perceive the role of ‘disruption’ within your industry, and how have you personally embraced it? Is it a necessity, a strategy, or something else entirely in your view?

In the CRE industry, disruption is both a necessity and a strategic imperative. The traditional methods and models that once defined the industry are being challenged by technological advancements, shifting consumer preferences, and regulatory changes. Embracing disruption is essential for staying relevant and competitive in this rapidly evolving landscape. I’ve embraced disruption by leveraging technology to innovate processes and drive efficiency. Whether it’s adopting AI and data analytics to enhance decision-making or embracing new investment strategies, embracing disruption has been integral to our success at Thirty Capital.

What lessons have you learned from challenging conventional wisdom, and how have those lessons shaped your leadership style?

Challenging conventional wisdom has taught me invaluable lessons that have profoundly influenced my leadership style and approach to business. Here are some key insights:

Embracing Innovation and Technology: By adopting a technology-driven mindset, we can unlock new opportunities, streamline processes, and drive efficiencies across our operations.

Data-Driven Decision Making: Delving deep into advanced analytics and data-driven insights has empowered us with a profound understanding of market dynamics and consumer behaviors. This enables us to make strategic decisions confidently, steering our ventures toward success.

Questioning the Status Quo: Challenging conventional wisdom means not accepting the ‘usual way of doing things’ without scrutiny. It’s about being open to new ideas, perspectives, and approaches, even if they initially seem unconventional.

Focus on Relationships and Team Building: In a field as complex and multifaceted as CRE, having a team that shares a vision and collaborates effectively is crucial. This involves encouraging open communication, mutual respect, and shared learning.

Adaptability and Resilience: In an ever-evolving industry, the ability to adapt to change and navigate uncertainty is critical for long-term success.

Disruptive ideas often meet resistance. Could you describe a time when you faced significant pushback for a disruptive idea? How did you navigate the opposition, and what advice would you give to others in a similar situation?

One instance of facing significant pushback for a disruptive idea was when we launched Investor Management Services (IMS) to assist commercial real estate syndicators in capitalizing on retail capital opportunities.

Initially, there was skepticism surrounding the viability and necessity of such a platform. However, by demonstrating the potential of this approach, we were able to overcome resistance and capitalize on the opportunity. My advice to others facing similar situations is to stay committed to your vision, communicate the benefits clearly, and be prepared to address concerns with data and evidence.