Welcome to another insightful episode of The Private Equity Experience podcast! In this episode, Emily Sander, Ed Barton, and Rory Liebhart dive into the controversial question: Is private equity too big to fail? As they discuss the parallels between the banking industry's "too big to fail" concept and private equity's massive influence, they explore the implications for investors, companies, and the broader economy.

Key Topics Covered:

• What does "too big to fail" mean for private equity?
• The role of private equity in the economy and employment.
• Historical precedents and lessons from past financial crises.
• Potential triggers for a private equity crisis.
• The intersection of politics, public perception, and private equity.
• Future outlook and actionable insights for investors and stakeholders.

Is Private Equity Too Big To Fail?

The discussion examines whether private equity firms have reached a stage where their failure could trigger a broader economic crisis, similar to the financial norms observed during the 2008 financial crisis.

Historical Context:

Exploration of historical events from the 2008 financial crisis to the recent banking troubles at SVB, providing context for our "too big to fail" discussion.

Interconnections and Stakeholders:

Conversation about private equity’s interconnection with pension funds, sovereign wealth funds, and the economy, shaping perceptions and potential government responses during crises.

Risk Management and Disruptions:

Analysis of how private equity navigated the 2008 financial crisis and COVID-19, focusing on liquidity and risk premium adjustments.

Potential PE Crises:

Discussion on what might trigger a private equity crisis, touching on the sensitivity to interest rate fluctuations and broader macroeconomic shocks.

Optical Challenges and Perception:

The hosts delve into the public and political perception of private equity, touching on its respective public image among sectors such as banking.

Highlights:

Economic Interconnections:

Discuss how private equity, including the PE-backed companies, can influence and be influenced by broader economic downturns.

Join Emily, Ed, and Rory as they delve into the nuances of private equity's resilience and its potential vulnerabilities, all while embracing the excitement of the upcoming football season!

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🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

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Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory

In this episode of the Private Equity Experience Podcast, we dive into the critical role of operating partners in private equity funding and their impact on the dilution of investment value. Hosts Emily Sander, Rory Liebhart, and Ed Barton break down how operating partners bridge the gap between PE firms and portfolio companies, offering tactical expertise, strategic oversight, and operational efficiencies. From CFOs and CTOs to turnaround specialists, discover why these professionals are a game-changer for PE returns and how they help mitigate risks in high-stakes investments.

Key Topics Covered:

• What are operating partners? Learn how they act as "connective tissue" between private equity funds and their portfolio companies.
• Private equity funding strategies: Explore how operating partners enhance IRR (internal rate of return) and create value through operational expertise.
• Dilution in PE investments: Understand how their role can reduce dilution risks by streamlining deal execution and improving scalability.
• Case studies: Real-world examples of operating partners in action—CFOs, CTOs, and turnaround specialists.
• Future trends: How tech-savvy operating partners (e.g., CTOs, AI experts) are reshaping PE strategies in a rapidly evolving market.

Why This Episode Matters:

• For investors: Insight into how operating partners boost private equity funding efficiency and reduce dilution of returns.
• For entrepreneurs: Learn how PE-backed companies leverage operating partners for scaling, cost-cutting, and strategic growth.
• For professionals: Discover how to transition into a private equity operating partner role and the skills needed to succeed.

Notable Takeaways:

• 70% of PE firms under $1B use operating partners to fill operational gaps.
• Operating partners bring playbooks for turning around distressed businesses or scaling growth-stage companies.
• Their expertise in private equity funding strategies, like technology integration and financial restructuring, contributes to a 3–5% IRR lift.
• The future of PE: More technology-focused operating partners (CTOs, AI specialists) to capitalize on innovation-driven value creation.

#PrivateEquityFunding #OperatingPartners #DilutionInPE #IRRStrategy #CFORole #PrivateEquityTrends #ManagementConsulting #PEIndustryInsights

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🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

================================

Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory

Description:
Tune in to the Private Equity Experience Podcast as we dive into the increasingly controversial topic of private equity making its way into 401(k) retirement accounts. This episode explores the latest developments, including Senator Warren's strong concerns and the potential risks associated with adding illiquid and volatile assets to employee retirement savings.

Key Takeaways:
Senator Warren's Stance: We discuss Senator Warren's critical letter to Empower, highlighting concerns about transparency, high fees, and liquidity risks associated with private equity offerings in managed 401(k) accounts.

The Allure & Risks of Private Equity: Experts Ed Barton and Rory Liehert break down the potential benefits for sponsors seeking to diversify, but also emphasize the significant downsides of private equity – including long lock-up periods, market volatility, and the lack of readily available liquidity.

Dilution in Retirement Savings: We examine how the introduction of private equity could impact the overall diversification and potentially the returns of 401(k) portfolios, especially for average investors.

The Evolution of Private Equity in Retirement: This episode traces the roots of this trend back to Donald Trump's early advocacy and analyzes the current push by organizations like Empower.

Risk Assessment: Private Equity vs. AI Portfolio Management: A lively debate ensues on whether allocating private equity to 401(k)s poses a greater risk than relying on AI-driven portfolio management.

Is This the Right Asset Class? We delve into the fundamental question of whether private equity aligns with the goals and risk tolerance of the average 401(k) participant.

#privateequity #401k #retirementplanning #investments #funding #dilution #fees #liquidity #risks #illiquidassets #senatorwarren #empower #privateequityin401k #financialplanning #assetallocation #marketvolatility

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🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

================================

Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory