Episode Details
| Title | Peter Lacaillade - Backing The Best Managers In Private Markets - [Invest Like the Best, EP.437] |
|---|---|
| Date | 8/12/2025 |
| Podcast | Invest Like the Best with Patrick O'Shaughnessy ↗ |
Key Insights
Bullish:
- 🟢 $LOWERMID - Lower middle market buyouts offer significant value creation potential due to multiple expansion as businesses scale. Typically, small businesses trade at 5-8x EBITDA, but can reach 12-18x EBITDA multiples when scaled to $20M+ EBITDA, potentially doubling the initial investment.
- “Lower middle market, this varies depending on the business model and industry dynamics and growth, etc. But say, a typical small business will trade for, say, five to six times EBITDA on the low end, maybe if it's a really great business with high growth, maybe it's say five to eight times EBITDA. Whereas when you scale that and you take that from somewhere in the two to seven of EBITDA grows to 20 plus, then that is valued by the market somewhere between 12 to sixteen eighteen times, the multiple you can sell that business at is twice as big as what you paid or significantly ahead.” - Peter (26:57)
- 🟢 $INDSPONSOR - 🔒
- 🟢 $BOOTGROWTH - 🔒
- 🟢 $AI - 🔒
Bearish:
- 🔻 $LARGECAP - 🔒
- 🔻 $INTERVAL - 🔒