We asked a $15B Investor how to survive the AI bubble
Graham Weaver, founder of Alpine Private Equity, discussed his firm's remarkable success, achieving a 5x return on capital for its last four funds over approximately six years. He attributed this to a unique "buy and build" strategy that prioritizes talent, often placing military veterans, like Navy SEALs, in leadership roles within acquired companies, particularly in prosaic industries like plumbing and HVAC. Alpine focuses on acquiring smaller businesses, averaging around $30 million per deal, and then expanding them through add-on acquisitions and operational improvements, often financing these with cash flow and debt without requiring additional equity.
Weaver emphasized that Alpine's differentiated approach starts with identifying high-attribute individuals—often those who have come through their training program—and then backing them to run businesses in industries deemed interesting. This model, which he described as a "super-powered search fund," leverages the dedication of these leaders, who are betting their careers on the business, and combines it with Alpine's expertise in sourcing deals and implementing best practices. By acquiring multiple companies in the same sector, Alpine can identify and integrate the "superpowers" or best practices from each, creating a comprehensive playbook that dramatically improves subsequent acquisitions. Weaver highlighted that this approach is more effective than simply backing existing founders, who may be resistant to new ideas.
