How Smart Buyers Create Alpha Without Cheap Debt

For the last 20 years, private equity followed a simple formula: buy with leverage, cut costs, rely on multiple expansion, exit at a higher valuation.That playbook worked incredibly well.But it no longer does.In this episode, I break down why the old private equity model is structurally broken - not just cyclically - and why a new model is emerging. A model where cheap debt doesn’t save you, multiple expansion can’t be assumed, and real value creation matters more than spreadsheets.TIMESTAMPS:00:00 Why the old private equity playbook is dead and why buy at 8x sell at 12x no longer works02:05 What the old PE model was and why it worked for 20 years06:25 Why the old playbook is failing structurally as rates rise and leverage weakens09:18 The shift from capital deployment to capability deployment11:00 How the industrial builder mindset creates real alpha today14:10 Why specialization beats being a generalist buyer18:30 How founders should diligence buyers in the new model22:15 The opportunity for HoldCo builders and small buyers in the lower middle marketSponsors:https://capitalpad.com/ - A deal-by-deal private equity investing platformhttps://www.spacebarstudios.co/inquireFollow Mikk/PrivateEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.