Private Equity Is Broken: How Debt, Fees & Leveraged Buyouts Really Work

Private equity sold itself as the smartest money in the room. Turns out, a lot of that “genius” may have just been 40 years of falling rates, cheap leverage, and somebody else willing to pay a higher multiple. We break down how the model actually works, why roughly 33,000 portfolio companies are now stuck waiting for an exit, and what happens when every leveraged buyout starts looking like an adjustable-rate mortgage that just reset. From Krispy Kreme turning the hot light into a cost center, to Toys “R” Us entering the Amazon fight buried in debt, to Red Lobster selling the building and keeping the rent, this is a tour through what happens when spreadsheets understand the balance sheet but miss the business.

💥 Have you left your "honest ⭐️⭐️⭐️⭐️⭐️" review?

This episode is proudly brought to you by Fridays.

Because real wealth starts with your health. If you want to feel sharper, stronger, and more in control, visit joinfridays.com and use code HIGHER for an exclusive discount.

📩 NEWSLETTER: https://tr.ee/O6FWkv

👕 THS MERCH: http://www.thspod.com

🔗 Resources:

Global Private Equity Report 2026 (Bain & Company)

Private-Equity Firms Are Sitting on a Nine-Year Backlog (The Wall Street Journal)

Global Private Markets Report 2026 — Private Equity: Clearer View, Tougher Terrain (McKinsey & Company)

⚠️ Disclaimer: Please note that the content shared on this show is solely for entertainment purposes and should not be considered legal or investment advice or attributed to any company. The views and opinions expressed are personal and not reflective of any entity. We do not guarantee the accuracy or completeness of the information provided, and listeners are urged to seek professional advice before making any legal or financial decisions. By listening to The Higher Standard podcast you agree to these terms, and the show, its hosts and employees are not liable for any consequences arising from your use of the content.