Sep 16, 2026 · 41 min

AI Forces Private Equity Back to Fundamentals

E430: Goldman Sachs’ Michael Bruun on AI, Private Equity & The War for Talent

The episode connects higher rates, AI adoption, operating discipline, and talent strategy to how private equity creates value in a more demanding market.

3 key takeaways

1Higher rates have revived cash-flow discipline and exposed the risks of assuming financing conditions will remain favorable.
2AI diligence now extends beyond financial statements to technology quality, data integrity, and practical opportunities for operational improvement.
3Successful AI adoption depends on visible leadership, broad employee experimentation, and people capable of navigating organizational change.

Don't miss

Michael Bruun explains why AI adoption must begin with visible senior leadership while giving employees room to experiment across the organization.

The brief

Michael Bruun, Goldman Sachs Asset Management’s Global Co-Head of Private Equity, explains how aligned incentives and a broad network help compete for middle-market investments.

Higher rates have brought private equity back to cash-flow fundamentals, making hedging, resilient business models, and experienced crisis leadership more valuable than complacent assumptions.

Bruun says AI changes diligence by elevating technology stacks and data quality—factors often missing from financial statements but central to future value creation.

Across portfolio companies, AI adoption starts with a CEO treating it as a strategic imperative, then spreads through experimentation in customer acquisition, insight generation, and operations.

The episode’s sharpest tension is that AI may amplify human talent, not replace it: culture and a change mindset increasingly determine who captures its leverage.

Bruun closes with advice to focus less obsessively on the next destination and more on learning from the journey through rapid change.

What was said on this episode

6 statements · 4 positive · 2 negative

Michael Bruunon Artificial IntelligencePositive0:07
AI adoption is essential and will change how businesses operate.
“AI is an absolute must and it's something that will change the way we do our business”
Listen at 0:07
Michael Bruunon Human experimentation with AINegative0:19
Restricting human experimentation makes optimal creative solutions unlikely.
“If humans are not allowed to experiment, it is unlikely that we will get to the most relevant and most creative solution.”
Listen at 0:19
Michael Bruunon War for talentNegative0:37
Competition for talent is currently at an unprecedented level.
“The war for talent is bigger than it's ever been.”
Listen at 0:37
Michael Bruunon AI-enabled employeesPositive0:41
AI-enabled employees with adaptable mindsets can accelerate organizational progress.
“If you can get the right people in with the right change mindset, they can move so much faster because they are AI enabled.”
Listen at 0:41
Michael Bruunon Goldman Sachs client co-investmentPositive1:39
Investing alongside clients creates a unique, trusted relationship.
“And that gives a very unique and trusted relationship.”
Listen at 1:39
Michael Bruunon Goldman Sachs client co-investmentPositive1:46
Few firms can invest alongside clients at Goldman Sachs’s scale.
“Very few firms can do it and no other firm does it at the scale. of Goldman Sachs.”
Listen at 1:46

Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.

Books & mentions

Streetwise

A book-length connection to the episode’s discussion of investing and business judgment.