Operational Velocity
Ep 2. Operational Alpha: Private Equity's Main Lever
34:55
In finance, alpha is the excess return on an investment relative to a benchmark, the portion of performance that can't be explained by market exposure or beta alone. It's the measure of whether a manager actually outperformed, or simply rode a rising market. For decades, private equity manufactured alpha through cheap leverage and multiple expansion, buy at a discount, add debt, wait for the…