In this episode, Drew Murphy joins Brandon Sedloff to break down the evolving landscape of GP solutions and what it means for private markets firms navigating growth, capital needs, and strategic partnerships. Drew shares a comprehensive view of how the market has developed over the past two decades, why today’s environment offers more optionality than ever, and how firms should think about timing, structure, and long-term alignment. The conversation dives into valuation frameworks, operational readiness, and the real drivers behind successful transactions, offering a practical lens for GPs considering their next move.
They discuss:
- How GP solutions evolved from hedge fund minority stakes to a broad ecosystem of financing, minority, and control transactions
- Why most transactions today are driven by growth and strategic alignment rather than distress
- The key components of GP valuation, including fee-related earnings, carry, and balance sheet capital
- What separates top-performing firms, including talent, fundraising consistency, diversification, and operating margins
- Why founders should continue investing in people and infrastructure even while preparing for a transaction
Links:
Berkshire Global Advisors - https://berkshireglobal.com/
Drew on LinkedIn - https://www.linkedin.com/in/drewrmurphy/
Brandon on LinkedIn - https://www.linkedin.com/in/bsedloff/
Juniper Square - https://www.junipersquare.com/
Topics:
(00:00:00) - Intro
(00:02:06) - Drew’s background and career
(00:09:48) - Size and scale of the Berkshire private markets team
(00:12:29) - The evolution of transactions around GP solutions
(00:22:57) - The state of the credit space
(00:25:45) - Solutions available to GPs
(00:31:15) - Patterns between venture, PE, and real estate
(00:32:58) - How firms are valued
(00:39:01) - Growth rates
(00:46:34) - Operational infrastructure
(00:48:08) - What makes a successful deal
(00:50:59) - What needs to happen for GPs thinking about solutions
(00:53:12) - Thoughts on 2026-2027 on the buy side
(00:56:26) - The state of GP fundraising
