Alt Goes Mainstream: AGM Unscripted

Goldman Sachs' Michael Bruun – Driving Value in Private Equity Through Network and Innovation

Host: Michael Sidgmore
Guest: Michael Bruun, Global Co-Head of Private Equity, Goldman Sachs Asset Management
Date: February 13, 2026

Overview: Episode Theme

This episode offers an in-depth conversation with Michael Bruun, global co-head of private equity at Goldman Sachs Asset Management. The discussion explores how Goldman Sachs leverages its scale, global network, technology innovation (especially AI and data), and collaborative culture to drive value creation in private equity. Bruun shares fresh perspectives on the evolving dynamics of PE, including operational value creation, the importance of network effects, AI’s transformative power, the impact of new capital sources (like evergreen funds), and how skillsets for investors are changing in a volatile macroeconomic environment.

Key Discussion Points & Insights

1. Evolution in Private Equity

• Industry Growth & Shifts in Value Creation

  • PE is “dramatically bigger” and has matured from financial engineering (leverage and multiple expansion) to operational value creation due to rising rates and credit spreads since 2021.
  • “The returns had to rely significantly more on operational value creation. And that’s one of the biggest thematics.” (03:30)

• Cost of Leverage Today

  • Cost of debt for buyouts has dropped (e.g., from 11% in 2022 down to 7% in recent quarters), creating more room for equity returns if supported by strong value creation resources.
  • “If you then combine that with very, very strong value creation resources, you can actually generate very, very healthy returns without relying on the multiple expansion that had helped prior vintages.” (03:50)

2. Value Creation: The “Resource Battle”

• Resource Intensity & Multi-Segment Platforms

  • Value creation is a “resource battle,” and scaled, multi-segment platforms have an advantage by spreading resources across multiple funds.
  • “Those who bring the most value creation resources are likely winners.” (04:36)

• Six Pillars of Value Creation at Goldman Sachs

  • Revenue scaling
  • Operational excellence (margin improvement)
  • Technology (including data and AI)
  • Talent optimization
  • ESG
  • Finance & strategy
  • Over 100 dedicated portfolio professionals. Talent, revenue scaling, and technology consume the most resources. (05:55)

3. Data and AI as a New Value Creation Frontier

• AI’s Preeminence

  • “Data and AI is the single most important aspect of any value creation plan at this moment in time.” (07:03)
  • Diagnostic begins with evaluating a company’s data hygiene, tech stack, and how AI can enable growth and margin expansion.

• B2B vs. B2C Applications

  • AI yields value in both sectors—efficiency gains (call centers), improved customer experience, and even revenue uplift.
  • “Through AI you give a better customer experience...you can use AI to scale revenue.” (09:40)

• Goldman’s Commitment

  • GS invests both client capital and its balance sheet in AI-related initiatives, taking a forward-looking approach to future-proof its portfolio. (10:51)

4. Power of the Goldman Sachs Platform

• Four Core Strengths

  • Network
  • Insights
  • Value creation
  • Alignment (including co-investment alongside clients and putting in firm/employee capital)
  • Application varies by segment and market, such as leveraging U.S. presence for European company expansion. (12:00)

• The 1GS Network

  • “No entity that we are aware of have a network like our network…It’s not just a network in theory, it's a network in action.” (20:11)
  • 1GS, launched 7 years ago, activates employees firm-wide in sourcing and value creation, creating a unique flywheel effect.

5. Changes in Capital Formation: Evergreen Funds & Continuation Vehicles

• Co-Investments & Diversification

  • “Co-investment has become incredibly important…very good for diversification.” (15:24)

• Evergreen Funds

  • Evergreen vehicles allow quicker scaling/mark-to-market for clients but are supplements—not substitutes—for closed-end fund mentalities.
  • “What we want to avoid is a significant strategy drift just because the ultimate packaging of the investment is now in an evergreen fund.” (16:22)

• Market Impact

  • Evergreen and continuation vehicles add flexibility, allowing some investors longer holds and others to exit; emphasizes the importance of operational value creation as the core of return formation. (17:56)

6. Investment Process in a Volatile World

• Micro vs. Macro Skills

  • “Today, I think it’s more about being able to conduct an orchestra” (22:22) rather than being a lone deal-maker. Collaboration is now a critical skill alongside traditional investment acumen.

• Data & Tech Stack

  • Advanced portfolio technology and data productization (with help from Goldman Sachs Engineering) empower rapid, informed responses to macro shifts and post-investment operations. (25:09)

7. What Differentiates Goldman Sachs Private Equity

• Scale and Network-in-Action

  • “No entity that we are aware of have a network like our network and that’s very important for sourcing and it’s very, very important for value creation…The more we activate it, the more of a flywheel we create.” (20:11)

• Combining Public and Private Insights

  • Close interaction with both GS’ public market and private market teams provides unique market intelligence, helping navigate volatility and anticipate trends. (21:20)

8. Future of Private Equity and Excitement Ahead

• Opportunity Amidst Change

  • Constant change creates new investment thematics for outsized returns, e.g., AI as both threat and opportunity for recent portfolio companies.
  • “If you have the resources to take that opportunity and do something about it, then I think you can generate extraordinary returns.” (26:12)

• Leadership & Organizational Readiness

  • Top CEOs must drive tech adoption (AI) top-down. Goldman’s CEO AI Academy helps ensure their portfolio’s leadership is equipped for future challenges. (27:14)

Notable Quotes & Memorable Moments

• On Network as a Differentiator
  • “No entity that we are aware of have a network like our network. And that's very important for sourcing and it's very, very important for value creation…but it's not just like a network in theory, it's a network in action.” – Michael Bruun (00:00, 20:11)
• On AI’s Role in Value Creation
  • “Data and AI is the single most important aspect of any value creation plan at this moment in time.” – Michael Bruun (07:03)
• On Evolving Investor Skillsets
  • “Today, I think it's more about being able to conduct an orchestra rather than just necessarily being a very singular deal maker.” – Michael Bruun (22:22)
• On Volatility
  • “There's no doubt that even this year so far we have had several kind of thematic shifts in the market that…very few people had predicted those shifts. So…you need to stay agile.” (23:38)
• On ESG, Data, and Talent
  • “Between these six sectors of excellence, we have more than 100 people now working in our portfolio…talent, revenue scaling and technology are some of the areas that are consuming the most hours.” (06:14)

Timestamps for Key Segments

• Goldman’s Unique Network/1GS – 00:00, 20:11
• Evolution of PE Value Creation – 02:33–04:12
• The “Resource Battle” & Value Creation Pillars – 04:36–06:48
• AI as Central to Value Creation – 07:03–09:40
• AI in Consumer vs. Enterprise Contexts – 08:55–11:07
• Differentiation & Platform Strengths – 11:34–14:10, 20:11
• Impact of Evergreen Funds & Co-Investment Trends – 14:56–17:18
• Collaboration as a Key Skill – 22:22–23:32
• Handling Volatility with Technology/Data – 23:38–25:42
• Future Themes & CEO AI Academy – 26:06–27:46

Final Thoughts

This episode provides a masterclass in how leading PE firms like Goldman Sachs are responding to the shifting landscape post-2021—emphasizing collaboration, technology, scale, and network effects as the new cornerstones of value creation. Michael Bruun’s candid observations and real-world examples highlight why adaptability, resourcefulness, and integrated capabilities are more critical than ever for private equity investors and portfolio companies.