What happens when a private equity fund reaches the end of its 10-year lifespan and can't sell its assets? Welcome to the era of Zombie Funds.

In Episode 40 of the Private Equity Experience Podcast, hosts Emily Sander, Ed Barton, and Rory Liebhart break down the alarming $348 billion backlog of net asset value trapped in aging PE funds past their standard 10-year expiration date.

The team examines why private equity firms are holding assets longer than ever, how frozen M&A markets affect Limited Partners (LPs) and General Partners (GPs), and what creative financial instruments (like continuation vehicles and net-asset-value loans) are emerging to solve this liquidity bottleneck. Plus, they explore how institutional capital is expanding into unexpected markets like NFL franchise ownership!

What is a "Zombie Fund"? Standard private equity funds operate on a 10-year life cycle (5 years to invest, 5 years to exit). Zombie funds are those past their decade mark still holding significant portfolio assets because market conditions prevent an profitable exit.

The Valuation Gap: Sellers want to maintain valuations based on peak post-COVID multiples, while buyers are adjusting for higher interest rates, creating a bid-ask spread that freezes M&A volume.

LP Pressure: Institutional investors (pension funds, endowments) are starving for cash distributions to reinvest in new funds, leading to a fundraising crunch across the industry.

Alternative Liquidity: Continuation vehicles and secondary market sales are moving from "last-resort options" to core strategic tools for GPs trying to return capital to LPs.

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🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

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Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory

In Episode 39 of the Private Equity Experience Podcast, the hosts answer listener questions and discuss the biggest topics shaping today's Private Equity landscape. From AI and recession concerns to valuation trends, venture capital changes, and investment strategies, they break down complex topics into practical insights anyone can understand. The conversation also reflects on what listeners have learned from the podcast, why Private Equity is becoming more relevant to business leaders, and where the show may go next. Whether you're a founder, executive, investor, or simply curious about PE, this episode offers valuable perspectives on today's market and the opportunities ahead.

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🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

================================

Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory

In Episode 38 of the Private Equity Experience, hosts Ed Barton, Rory Leaphart, and Emily Sander break down the cautionary tale of Leslie's Pool Mart. They dive into an Inc. Magazine feature detailing how a successful regional brand expanded nationwide through the classic private equity playbook, only to find itself mired in debt as market conditions shifted.

The crew uses this real-world case study to unpack critical financial concepts, including the dangerous intersection of high operating leverage and high financial leverage. You'll learn the core differences between fixed and variable cost structures, how corporate store roll-ups risk brand dilution, and when a franchise model might protect a parent company from overextension.

Stick around until the end for a lightning round on "shark strategies" and an exciting personal update on Rory's journey to the amateur Strongman nationals!

Key Takeaways from This Episode

• The COVID Boom & Reversion to the Mean: Many industries experienced unprecedented growth during the pandemic, resulting in inflated 2021–2022 valuations that did not hold as consumer behavior normalized.
• Operating vs. Financial Leverage: Operating leverage represents your ratio of fixed to variable costs. When a business stacks high operating leverage (such as owning 1,000 retail leases) with heavy debt, a minor dip in revenue can create a catastrophic cash crunch.
• The Pitfalls of National Expansion: Taking a local or regional business national often dilutes the unique brand DNA and eccentricities that made the founder successful in the first place.
• Franchising as a Risk Mitigator: Licensing intellectual property to independent franchisees shifts capital expenditures and lease liabilities away from the corporate level, protecting the overarching brand during downturns.

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🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

================================

Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory