AGM Unscripted: Goldman Sachs' Michael Bruun - Driving Value in Private Equity Through Network and Innovation
Episode
28 min
Read time
2 min
Topics
Product & Tech Trends
AI-Generated Summary
Key Takeaways
- ✓Return Formation Evolution: Private equity returns shifted dramatically from 2021 to 2022 as cost of debt rose from 7% to 11%, eliminating multiple expansion strategies. Firms now generate returns through EBITDA growth via revenue scaling and margin expansion rather than financial engineering. Recent credit market improvements have reduced debt costs back to 7%, creating more room for equity returns when combined with operational value creation capabilities.
- ✓AI Value Creation Priority: Data and AI consume more value creation hours than any other initiative across Goldman's portfolio. The diagnostic process evaluates company data quality, tech stack configuration, and AI enablement potential. AI applications now drive both margin expansion through operational efficiency and revenue growth through improved customer experience, with some companies discovering AI solutions for one problem simultaneously solve adjacent business challenges.
- ✓Network Activation Model: Goldman's "One GS" structure, implemented seven years ago, activates employees far from investment decisions to support deal sourcing and value creation. The firm deploys over 100 people across six value acceleration sectors: revenue scaling, operational excellence, technology, talent, ESG, and finance strategy. Talent, revenue scaling, and technology consume the most implementation hours across the portfolio, with talent upgrades considered essential for future-proofing companies.
- ✓Strategic Exit Focus: Goldman maintains discipline by underwriting every deal with a strategic buyer or financial sponsor exit in mind, avoiding reliance on continuation vehicles or evergreen funds as primary exit strategies. While evergreen vehicles provide flexibility and quick deployment for investors less familiar with private equity, they represent a small portion of capital and supplement rather than substitute traditional closed-end fund structures to prevent strategy drift.
- ✓Collaboration Over Solo Dealmaking: The skill set for private equity investors has shifted from singular deal-making ability to orchestrating resources across large teams. Predicting whether a company remains relevant five years out requires collaboration across public and private investment teams, strategic corporate relationships, and engineering resources. Goldman's CEO AI Academy trains portfolio company leaders to drive AI adoption top-down rather than delegating it solely to technology departments.
What It Covers
Michael Bruun, global co-head of private equity at Goldman Sachs Asset Management, explains how the firm leverages its network and value creation resources across an $83 billion platform. He discusses the shift from financial engineering to operational excellence, the critical role of AI implementation, and how Goldman's "One GS" approach activates employees across the firm to drive deal sourcing and portfolio company growth.
Key Questions Answered
- •Return Formation Evolution: Private equity returns shifted dramatically from 2021 to 2022 as cost of debt rose from 7% to 11%, eliminating multiple expansion strategies. Firms now generate returns through EBITDA growth via revenue scaling and margin expansion rather than financial engineering. Recent credit market improvements have reduced debt costs back to 7%, creating more room for equity returns when combined with operational value creation capabilities.
- •AI Value Creation Priority: Data and AI consume more value creation hours than any other initiative across Goldman's portfolio. The diagnostic process evaluates company data quality, tech stack configuration, and AI enablement potential. AI applications now drive both margin expansion through operational efficiency and revenue growth through improved customer experience, with some companies discovering AI solutions for one problem simultaneously solve adjacent business challenges.
- •Network Activation Model: Goldman's "One GS" structure, implemented seven years ago, activates employees far from investment decisions to support deal sourcing and value creation. The firm deploys over 100 people across six value acceleration sectors: revenue scaling, operational excellence, technology, talent, ESG, and finance strategy. Talent, revenue scaling, and technology consume the most implementation hours across the portfolio, with talent upgrades considered essential for future-proofing companies.
- •Strategic Exit Focus: Goldman maintains discipline by underwriting every deal with a strategic buyer or financial sponsor exit in mind, avoiding reliance on continuation vehicles or evergreen funds as primary exit strategies. While evergreen vehicles provide flexibility and quick deployment for investors less familiar with private equity, they represent a small portion of capital and supplement rather than substitute traditional closed-end fund structures to prevent strategy drift.
- •Collaboration Over Solo Dealmaking: The skill set for private equity investors has shifted from singular deal-making ability to orchestrating resources across large teams. Predicting whether a company remains relevant five years out requires collaboration across public and private investment teams, strategic corporate relationships, and engineering resources. Goldman's CEO AI Academy trains portfolio company leaders to drive AI adoption top-down rather than delegating it solely to technology departments.
Notable Moment
Bruun reveals that Goldman Sachs engineering has become one of his most critical partnerships, working to productize insights from portfolio company case studies so every CEO and functional leader can access learnings without individual discovery journeys. This approach accelerates implementation across the portfolio, particularly valuable during periods of market volatility when rapid data-driven decisions separate outperforming managers from average returns.
You just read a 3-minute summary of a 25-minute episode.
Get Alt Goes Mainstream summarized like this every Monday — plus up to 2 more podcasts, free.
Pick Your Podcasts — FreeKeep Reading
More from Alt Goes Mainstream
Bridgepoint's Xavier Robert - building a "middle market global champion"
Apr 23 · 41 min
Masters of Scale
Possible: Netflix co-founder Reed Hastings: stories, schools, superpowers
Apr 25
More from Alt Goes Mainstream
AlphaCore Wealth Advisory's Dick Pfister - Wealth management with alpha at its core: live from iCapital Connect
Apr 21 · 30 min
This Week in Startups
The Defense Tech Startup YC Kicked Out of a Meeting is Now Arming America | E2280
Apr 25
More from Alt Goes Mainstream
We summarize every new episode. Want them in your inbox?
Bridgepoint's Xavier Robert - building a "middle market global champion"
AlphaCore Wealth Advisory's Dick Pfister - Wealth management with alpha at its core: live from iCapital Connect
HarbourVest's John Toomey - over 40 years of "earning investors' trust"
Stonepeak Credit's Ryan Roberge - building an infrastructure credit strategy
Bloomberg's Brad Foster - driving the convergence between public and private markets
Similar Episodes
Related episodes from other podcasts
Masters of Scale
Apr 25
Possible: Netflix co-founder Reed Hastings: stories, schools, superpowers
This Week in Startups
Apr 25
The Defense Tech Startup YC Kicked Out of a Meeting is Now Arming America | E2280
Marketplace
Apr 24
When does AI become a spending suck?
My First Million
Apr 24
This guy built a $1B+ brand in 3 years. The product? You'd never guess
Eye on AI
Apr 24
#338 Amith Singhee: Can India Catch Up in AI? IBM's Amith Singhee on What It Will Take
Explore Related Topics
This podcast is featured in Best Investing Podcasts (2026) — ranked and reviewed with AI summaries.
You're clearly into Alt Goes Mainstream.
Every Monday, we deliver AI summaries of the latest episodes from Alt Goes Mainstream and 192+ other podcasts. Free for up to 3 shows.
Start My Monday DigestNo credit card · Unsubscribe anytime