After more than 30 years in investing—including 20 years at BC Partners and a decade as CIO—Jean-Baptiste Wautier joins Alex Rawlings to share the lessons that have shaped his approach to private equity.
Jean-Baptiste explains why trying to time markets is a mistake, how GPs should think about exits, and why time and DPI can matter just as much as MOIC. He also argues that private equity has entered a consolidation phase where scale, institutionalisation and permanent capital will increasingly separate the long-term winners from the rest.
The conversation also explores how firms should diversify, the tailwinds behind AI and the US economy, and Jean-Baptiste’s three requirements for a great investment: a strong moat, an exceptional management team and multiple layers of optionality. He breaks down what he looks for in CEOs, where operating teams can genuinely create value, and why the skill set required to lead tomorrow’s private equity firms is changing.
Key Takeaways
Don’t try to perfectly time deployment or exits; invest steadily and price for the environment.
Exit decisions should start with fund-level needs, including DPI, the J-curve and the cost of time.
Scale is becoming essential as private equity shifts from entrepreneurial partnerships toward large institutions.
New strategies should be capable of becoming meaningful, multi-billion-dollar businesses and leverage existing infrastructure.
Permanent capital can provide GPs with strategic stability and longevity.
Great investments combine moat, management and optionality across both value creation and exit routes.
The strongest CEOs tend to excel in one core dimension—charisma, operations or finance—while also creating trust and alignment.
Functional operating expertise such as working capital and procurement can be more repeatable than broad “sector expertise.”
Timestamps
00:00 – Introduction to Jean-Baptiste Wautier 01:28 – The mistake of trying to time private equity markets 03:21 – When is the right time to exit? 04:17 – DPI, the J-curve and the cost of holding assets 05:15 – The current state and future of private equity 06:42 – Why subscale firms face consolidation 09:39 – Why performance alone is no longer enough 13:04 – Where displaced private equity talent may go next 14:31 – How GPs can scale AUM 16:57 – Why permanent capital is the “Holy Grail” 18:22 – When firms should diversify into new strategies 20:17 – What helped BC Partners scale 23:45 – Where the next investment tailwinds may come from 27:10 – Moat, management and optionality 32:23 – What the best private equity CEOs have in common 35:42 – What makes a strong value-creation strategy 39:03 – How private equity firms are becoming institutions 44:44 – Books and investors that shaped Jean-Baptiste’s thinking 46:33 – How to connect with Jean-Baptiste
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