Dry Powder: The Private Equity Podcast

Michael Dorrell, Chairman, CEO, and co-founder of Stonepeak, shares his take on where energy and logistics investing are heading. He covers tightening power capacity and gas export projects. He explains data center power pressures, onshoring supply chains, rising demand for warehouses and cold storage, and why palletized logistics can create durable advantages.

Michael Dorrell, CEO and co-founder of Stonepeak and a pioneer in infrastructure investing, shares his journey from early Macquarie deals to founding Stonepeak. He breaks down digital infrastructure needs like data centers, power and fiber. He explains why building often trumps buying, offers a data center risk framework, and discusses power constraints and deglobalization’s infrastructure effects.

Jennifer Choi, CEO of ILPA and leading voice for institutional limited partners. She discusses LPs' uneasy 2026 mood and why allocations and benchmarking are under scrutiny. She explores the rise and governance questions around continuation vehicles. She warns about retail/private wealth entering private markets and what LPs should be asking.

A brisk walkthrough of Bain’s 2026 private equity numbers and whether rising totals mask deeper shifts. The conversation highlights fewer but larger deals, flat fundraising with buyouts under pressure, and why infrastructure and secondaries drew capital. Listeners hear about higher growth needed for target returns, rising costs and fee pressure, and strategic priorities like talent, sourcing and speed-to-value.

David Andrews, Co-CEO of Gryphon Investors, leads a middle-market firm known for its large operating team and expertise in org development and AI. He explains why a 40-person ops group makes sense. He outlines the ops mix, building an AI practice, how CEOs adopt organizational design work, and why culture, incentives, and speed give middle-market firms an edge.

David Andrews, Co-CEO and founder of Gryphon Investors and a longtime private equity veteran, explains how he spotted a harsher cycle early. He discusses early warning signs since 2014 and the risks of pro forma EBITDA tricks. He describes pausing fundraising, protecting portfolio liquidity, mistakes around covenant-light debt, and why better exit conditions may arrive by 2026.

Karen Harris, Managing Director at Bain's Macro Trends Group, dives deep into the current AI landscape. She distinguishes between price and quantity bubbles, comparing AI to the dot-com era. Harris reveals how early investors may unintentionally subsidize tech shifts and discusses the risks of a significant valuation correction potentially leading to recession. She reassures that while AI may reshape job functions, it won't eliminate jobs entirely. Karen highlights growth areas in healthcare and crypto, showcasing the potential for new opportunities amidst change.

Karen Harris, Managing Director of Bain's Macro Trends Group, delves into the cracks in the U.S. market and what could derail 2026. She highlights the potential impact of tariffs and warns that a stock market pullback could disrupt recovery. The Fed's balancing act between inflation and recession is discussed, alongside China's strategic resource use and tech ambitions. Harris also examines northern Europe's resilient industries and flags emerging trends in Latin America and India, pointing to global shifts investors should heed.

The discussion kicks off with the idea of cleaning out the ‘PE attic’ filled with outdated funds. A snapshot of the market reveals fewer deals but rising values, with larger transactions driving growth. The host argues that current market distortions are cyclical, not structural, and supports a positive outlook for ongoing deals. Concerns about overvalued long-held assets among LPs are addressed, highlighting a timing dilemma for GPs. The conversation ends with optimism for 2026, predicting a rebound in exits and fundraising.

Haitham El-Nazer, Co-managing partner at TA Associates, dives into the intricacies of private equity investment aimed at middle-market growth. He discusses the creation of a Strategic Resource Group designed to enhance value post-deal, highlighting its impressive capabilities in sourcing add-on acquisitions. Haitham shares a fascinating case study of The Access Group, revealing how they scaled from £50M to over £1bn through 100+ acquisitions. He also emphasizes the importance of early capital return strategies and the firm’s unwavering focus on the middle market.