The Private Equity Podcast, by Raw Selection The investing strategy in the franchising and multi-unit retail sector
Apr 7, 2026
Mike Esposito, co-managing partner of Franchise Equity Partners and former Goldman Sachs leader, explains his move into franchising and multi-unit retail investing. He discusses avoiding copycat PE strategies. He explains why franchising is undercapitalised and attractive. He outlines their minority, permanent capital approach and the role of data science in sourcing and diligence.
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Focused Strategy Beats Me-Too PE Trades
- Private equity suffers from
From Goldman Sachs Retirement To Starting FEP
- Mike left Goldman Sachs after almost 30 years and initially intended to retire during COVID before launching Franchise Equity Partners.
- He spent months fishing and on the beach, then pivoted to build an entrepreneurial firm with a focused strategy and growing team.
Why Franchising Is A White Space For PE
- Franchising and multi-unit retail combine national brand scale with local entrepreneur management, creating large undercapitalised opportunity.
- Many PE firms avoid it because brands resist outside owners and franchisees must accept limited control over the business model.