Joe Zappulla

Private Equity

The Growing Interdependence of Private Equity Return Metrics

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Private equity underwriting has become materially tighter. A business acquired at 11x–13x EBITDA with 5.5x–6.5x leverage and underwritten to a 20%+ IRR historically had room for moderate operational underperformance if exit multiples expanded or financing remained accommodative. Many funds are dealing with flat or lower exit multiples, elevated borrowing costs, and portfolio company performance below […]

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Private Equity

Rising Debt Costs Are Changing the Economics of Leveraged Investing Beyond Private Equity

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Rising debt costs are changing the economics of leveraged investing well beyond private equity. As government borrowing absorbs more capital, financing costs across the economy continue to rise, forcing investors to reassess valuation assumptions, refinancing risk, and return expectations. The pressure is increasingly visible across commercial real estate, infrastructure and high growth technology sectors. Higher

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Private Equity

Rebuilding Value in Healthcare Private Equity

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Private equity investment in healthcare scaled aggressively over the past decade—500+ deals annually and ~$150B at peak. The model was consistent: consolidation drove pricing power, labor costs were manageable and leverage amplified returns. That model is now under pressure. Historically, PE ownership drove 7%–16% price increases post-acquisition, but insurers and government payors are now pushing

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SaaS Market

The SaaS market has reset.

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Deals underwritten on 20–30% growth and multiple expansion are now facing slower growth, tighter budgets, and lower exit comps. The gap between assumptions and performance is clear. Underperforming assets look the same: Growth isn’t enough anymore. It’s about the quality of growth — repeatability, pricing discipline, and cash conversion. The fix is operational: Product strategy

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SaaS Market

From Growth to Cash Flow: The Repricing of SaaS

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The SaaS market has repriced sharply. At the peak, investors paid 15x–25x forward revenue for growth, underwriting future profitability that, in many cases, never materialized. Today, that assumption has broken. Most SaaS assets now trade in the 4x–8x range, with subscale or lower-quality businesses clearing at 2x–5x, if they clear at all. Exit markets are

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Private Equity

The Gap Between Paper Value and Realizable Value Is Reshaping PE Credibility and Returns

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The next phase of private equity is being defined not only by how value is created, but by how it is measured. With secondary market discounts widening and exits occurring below prior marks, LPs are increasingly questioning whether reported valuations reflect reality. As market multiples stagnate and leverage becomes less effective, the gap between paper

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MOIC

Fixing returns in aging PE portfolios through execution

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Maximum Multiple on Invested Capital (MOIC) is no longer achieved through structuring alone—it is built through EBITDA growth, cash flow conversion, and disciplined leverage. While the core equations of private equity remain unchanged, delivering target returns now requires greater precision in underwriting and execution. MOIC is driven by EBITDA growth, multiple expansion, and deleveraging, but

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Private Equity

The End of Financial Engineering: Can Private Equity Still Deliver Returns?

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Private equity’s playbook—cheap debt, multiple expansion, and clean exits—no longer works. From 2015–2021, low rates (0.5%–2.5%) fueled leveraged buyouts and growth. By 2023, rates rose ~500 bps, pushing borrowing costs to 7–9% and compressing returns. At the same time, private credit is tightening, refinancing is harder, and EBITDA growth is less reliable. Margins are under

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