When Red Lobster went bankrupt, a lot of people blamed private equity, and in that case I think they have a point. The firm that bought the chain sold the real estate under the restaurants and leased it back, took money off the table early, and left the operators handcuffed. That is short-term gain creating long-term pain. It is also only half the story.

In this episode I explain what private equity actually is, why venture capital is a subset of it, and how buyouts, growth capital and exit strategies work. These are terms people hear every day and are too embarrassed to ask about. By the end you will understand them well enough to explain them at the dinner table.

Then I tell you about Reginald Lewis. When traditional lenders would not back him, he found alternative financing, bought Beatrice International, ran it with discipline and patience, and built generational wealth that still supports his family and community. I also share my own experience building the Promise Homes Company with private investors, including the day the deal closed while I was sitting in a Taco Bell drive-thru. Private equity, done with the right priorities, creates companies and jobs. Done with the wrong ones, it hollows them out.

Here is the part I most want you to hear. When a young athlete hands a cousin thirty thousand dollars to open a club, that is private equity too. We have been doing it for years without a business plan. It is time to move private equity from the streets to the suites, and to understand the tools well enough to use them ourselves.

🎧 Listen now — wherever you get your podcasts, or simply click below.

Prefer to watch? The full episode is on YouTube.