HoldCo Builders I didn't join PE to be an operator
Dec 16, 2025
The podcast dives into the exodus of private equity talent seeking ownership opportunities. It discusses how diluted carry and operational roles are deterring professionals from traditional paths. Many are frustrated with the lack of a clear route to wealth within large firms. Instead, smaller funds offer immediate equity participation and significant influence. Various entrepreneurial models like search funds and self-funded deals are on the rise, promoting a shift that rewards builders and democratizes ownership in the industry.
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Carry's Promise Has Eroded
- Carry no longer guarantees eventual wealth for mid-level PE professionals who face diluted payouts and long waits.
- Mikk argues that theoretical carry lost its glue as funds grew, exits slowed, and many never touch real carry.
A VP Who Walked Away Over Vanishing Carry
- One VP left because he was losing confidence his carry would ever materialize and couldn't hit wealth targets.
- Mikk recounts peers concluding they needed to build wealth outside the traditional PE ladder.
PE Roles Have Become Operational
- Private equity mid-level roles have shifted toward heavy operations work managing troubled portfolio companies.
- Mikk highlights that many didn't join PE to be operators but now spend weeks on ops calls and debt renegotiations.