BDO Private Equity PErspectives Podcast Lessons Learned, Exits Reimagined: PE's 2026 Playbook - Part B
Mar 13, 2026
Kyle Bethancourt, co-founder of Sallyport Investments, brings family-office discipline and specialty finance know-how. Eliot Kerlin, co-founder of Broadwing Capital, focuses on portfolio readiness and organic growth. They discuss creative exit pathways for longer hold periods. They explore how AI is used inside firms and across portfolio companies. They weigh deal selectivity, leverage discipline, and a cautious 2026 outlook.
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How 2021's Post‑COVID Boom Distorted Valuations
- The 2021 deal boom was driven by post-COVID demand rebound, pricing power from supply squeezes, and abundant low-cost leverage.
- Eliot Kerlin notes volume and pricing growth masked true margin drivers and made later refinancing harder when rates rose.
Underwrite Deals Without Assuming Rate Relief
- Underwrite today assuming rates may not fall; prioritize disciplined leverage and stricter lender expectations.
- Eliot advises focusing on loan-to-value, debt-to-equity, and sponsor equity contributions when modeling deals.
VC Told Us Never To Slow Growth
- Kyle Bethancourt recounts a VC admonishing him for suggesting slowing growth to prioritize cash flow in an energy tech company.
- Five years later both Sallyport and that VC benefited from the investment's free cash flow exit.