What strong deal-level diversification looks like

In this episode, host Alex Rawlings is joined by Joe Basrawy, Managing Director at Partners Capital, a global multi-asset investment firm serving some of the world's most sophisticated investors — including private equity founders, endowments, and family offices.

Joe offers a rare and in-depth look at the Limited Partner (LP) perspective — covering common pitfalls private equity firms make, what LPs are really looking for, and how to stand out in a crowded market. He also shares a masterclass on co-investments, including how LPs assess alignment, avoid adverse selection, and punch above their weight in deal flow.

This episode is packed with actionable insights for fund managers, deal professionals, operating partners, and anyone looking to better understand what makes a top-performing PE firm in the eyes of institutional investors.

⏱️ Timestamps:

00:00 – Welcome and guest intro: Joe Basrawy, Managing Director, Partners Capital
01:00 – Joe’s background: From investment banking to multi-asset investing
01:25 – What drew Joe to Partners Capital and what’s kept him there
02:21 – Biggest mistakes PE firms and portfolio companies make
03:15 – Raising too much capital: Overstretching and going off-spec
04:13 – Deal-level diversification: What LPs want to see
05:39 – Co-investing 101: Why it's attractive and the risks of adverse selection
06:37 – How LPs like Partners Capital avoid adverse selection in co-investments
07:33 – Being a reliable and speedy co-investment partner
08:31 – Why LPs say “no” to co-investments — alignment, conviction, and deal partners
09:57 – Referencing employees and internal conviction in deals
10:56 – What makes the best private equity firms? Joe’s four pillars
11:25 – #1: Strategy differentiation – A case study in healthcare PE
13:22 – #2: Value creation edge – Organic growth vs market tailwinds
15:18 – #3: Ownership dynamics – How GP stake sales affect firm culture
17:15 – #4: People – Why leadership and succession planning matter
19:05 – Referencing portfolio executives: The most revealing feedback
20:28 – What LPs learn from talking to portfolio CEOs
21:56 – What LPs look for in fund managers – Discipline, detail, and passion
23:52 – Joe’s reading recommendations – Fiction and finance
25:47 – How to connect with Joe
26:17 – Outro from Alex

📘 Recommended Reading by Joe Basrawy:

• The Children Act by Ian McEwan (also a film adaptation with Emma Thompson)
• The Money Kings – History of Jewish-American families who founded Wall Street firms

🔗 Connect with Joe Basrawy:

• LinkedIn
  (search Joe Basrawy)
• Partners Capital Website

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