Keep pulling the thread on Graham Weaver.
Alpine's primary objective is to be the number one performing private equity fund in the world, as measured by Multiple on Invested Capital (MOIC).
Alpine targets a 5x Multiple on Invested Capital (MOIC) for every fund it raises.
Alpine has achieved or is marking a 5x Multiple on Invested Capital (MOIC) on its last four funds.
Around 2010, Alpine made a strategic decision to install its own management teams in 100% of its new platform acquisitions.
Alpine's HVAC platform, Apex, is projected to generate $500 million in EBITDA this year from an initial equity investment of $50 million, with no additional equity contributed by the fund.
In the past year, the Alpine CEO-in-training program was the most applied-to job at Harvard Business School, Stanford Graduate School of Business, and the Kellogg School of Management.
Alpine's HVAC platform, Apex, grew from an initial acquisition with $40 million in revenue and $8 million in EBITDA to a projected $3 billion in revenue for the current year.
Alpine's foundational belief is that placing exceptional leaders and management teams into companies is the primary driver of alpha.
Alpine's investment strategy involves pairing "A+" management teams with companies in "B+" industries that are often overlooked by other investors.
The speaker predicts that private equity firms delivering median returns will struggle to raise subsequent, larger funds over the next decade.
The pressure to raise the next fund incentivizes private equity firms to sell their best-performing companies early to show realized returns, while holding onto underperforming assets.
Alpine underwrites its individual deals to a 3x to 3.5x gross MOIC over a five-year period, without assuming any multiple expansion.