Orlando Bravo

Now groups like us, we started small.

We started producing 25% margin.

Now 35.

Now 40 to 45, because we're also buying better businesses and we've learned.

But that is so intense that it gives you very little time to pursue internal projects.

Both.

It's pretty controversial.

LPs have gotten used to it.

They've accepted this.

I think you should do that as the exception rather than the rule.

You can also do so many in your fund.

You mentioned valuations.

In our world, say you are looking at a 15% growth company.

that has high quality of revenue, that is a market leader in its space, that is now highly profitable because it's been owned by private equity.

Those companies used to trade in the private markets for 20 to 25 times EBITDA, something in that range, from one firm to another.

Now the valuations of those companies are 15 times EBITDA.

So as an owner,

the opportunity is that you can buy other companies add-on acquisitions much cheaper than you had in your model.

So you always try to use these things as an owner to your advantage.

You then have to create more value so that at 15 to 17 times exit, you can produce the returns that your investors expect.