Dry Powder: The Private Equity Podcast

Karen Harris, Managing Director at Bain's Macro Trends Group, dives deep into the current AI landscape. She distinguishes between price and quantity bubbles, comparing AI to the dot-com era. Harris reveals how early investors may unintentionally subsidize tech shifts and discusses the risks of a significant valuation correction potentially leading to recession. She reassures that while AI may reshape job functions, it won't eliminate jobs entirely. Karen highlights growth areas in healthcare and crypto, showcasing the potential for new opportunities amidst change.

Karen Harris, Managing Director of Bain's Macro Trends Group, delves into the cracks in the U.S. market and what could derail 2026. She highlights the potential impact of tariffs and warns that a stock market pullback could disrupt recovery. The Fed's balancing act between inflation and recession is discussed, alongside China's strategic resource use and tech ambitions. Harris also examines northern Europe's resilient industries and flags emerging trends in Latin America and India, pointing to global shifts investors should heed.

The discussion kicks off with the idea of cleaning out the ‘PE attic’ filled with outdated funds. A snapshot of the market reveals fewer deals but rising values, with larger transactions driving growth. The host argues that current market distortions are cyclical, not structural, and supports a positive outlook for ongoing deals. Concerns about overvalued long-held assets among LPs are addressed, highlighting a timing dilemma for GPs. The conversation ends with optimism for 2026, predicting a rebound in exits and fundraising.

Haitham El-Nazer, Co-managing partner at TA Associates, dives into the intricacies of private equity investment aimed at middle-market growth. He discusses the creation of a Strategic Resource Group designed to enhance value post-deal, highlighting its impressive capabilities in sourcing add-on acquisitions. Haitham shares a fascinating case study of The Access Group, revealing how they scaled from £50M to over £1bn through 100+ acquisitions. He also emphasizes the importance of early capital return strategies and the firm’s unwavering focus on the middle market.

Haitham El-Nazer, co-managing partner of TA Associates, shares insights on sourcing private equity investments in the tech sector. He reveals how TA evaluates a staggering 40,000 companies annually through a dedicated data-driven approach. Haitham highlights the entrepreneurial culture that attracts founders seeking growth beyond just financial offers. Additionally, he discusses the rigorous diligence process and the meritocratic system that shapes future leaders at TA. This compelling conversation sheds light on the strategic minds behind successful investments.

Kristin Olson, Global Head of Alternatives for Wealth at Goldman Sachs, dives into the challenges of democratizing private markets. She discusses the rise of evergreen funds and their liquidity advantages. Kristin emphasizes the importance of scale and diverse strategies in making alternatives accessible. She outlines how technology and operational enhancements are vital for retail investor engagement. With excitement about future accessibility, she also highlights the need for caution regarding pricing and investor behavior.

Kristin Olson, Global Head of Alternatives for Wealth at Goldman Sachs, brings 25 years of experience in alternative investments. She discusses the anticipated 30% annual growth in individual investing and the need for education to boost adoption. Kristin highlights how Goldman curates diverse strategies for ultra-high-net-worth clients and the importance of net returns over fees. She explains appropriate allocations based on risk profiles and liquidity needs, and reveals their secondary marketplace for enhanced liquidity options.

Dipan Patel, Co-CEO of Permira, shares his insights on driving revenue growth across portfolio companies through a unique, sector-embedded approach. He emphasizes the importance of prioritizing revenue over margin, discussing how former operators in their value creation team spearhead growth. Patel reveals strategies for creating clear exit theses that appeal to future buyers and highlights the role of an entrepreneurial culture in attracting top talent. The conversation illuminates how a focus on growth and competitive moats can transform businesses.

Dipan Patel, co-managing partner and co-CEO of Permira, shares insights on successfully scaling operations across Europe and the U.S. He emphasizes the importance of empowering local teams and building relationships. The conversation delves into slow, methodical growth as a strategy for institutional confidence. Dipan also highlights Permira's tech-focused yet diversified approach, integrating AI into core workflows and investment strategies. He outlines their value creation playbook, focusing on under-leveraged growth and product-led expansion.

Steve Ellis, co-managing partner of TPG's Rise Fund, dives into the dynamic world of impact investing and carve-out deals. He reveals how integrating an impact lens enhances deal sourcing and execution. The conversation spans the growth potential in sectors like healthcare and education, highlighting the shift towards sustainable investments. Ellis discusses the critical strategies for navigating carve-outs, showcasing how they can unlock hidden value and create both financial returns and social impact, particularly in underserved communities.