E348: Why “Boring” Businesses Beat Venture Capital

Is private equity alpha really about picking great deals—or about executing the same playbook better than everyone else? In this episode, I discuss with Monty Yort, Managing Partner at GenNx360 Capital Partners, about how disciplined execution and consistency drive long-term outperformance in private equity. We break down how GenNx360 approaches proactive sourcing, why lower middle market investing creates structural advantages, and how operational improvement and buy-and-build strategies compound value over time. Monty also shares lessons on leadership, mentorship, and why the best firms continuously refine their process rather than chase new strategies. Highlights:

• Why proactive sourcing leads to better deals and more opportunities
• The shift to industrial services and fragmented markets
• Buy-and-build as a repeatable value creation strategy
• Why organic growth is the primary driver of returns
• How to evaluate founders and build leadership teams
• The importance of discipline in fund size and strategy
• Why continuation funds extend the best investments
• How repetition and consistency outperform complexity
• The role of mentorship in accelerating careers
• Why private equity is about people as much as process

Guest Bio:

Monty Yort is a Managing Partner at GenNx360 Capital Partners, a New York–based private equity firm with $2.5 billion in assets under management focused on middle-market industrial and business services companies. He has more than two decades of experience leading acquisitions and recapitalizations totaling over $3 billion, specializing in operational improvement and growth in fragmented industries. Prior to joining GenNx360 in 2009, Monty was a Managing Partner at Schroder Ventures and a Principal at Aurora Capital Group, with earlier roles at Morgan Stanley and Salomon Brothers. He holds an MBA from UCLA Anderson and serves on multiple portfolio company boards

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Sponsor:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more.

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X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Capital: https://www.weisburdcapital.com/

Stay Connected with Monty Yort:

LinkedIn:https://www.linkedin.com/in/monty-yort-8236043/

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Why Private Equity Doesn’t Need Power Laws to Win (1:09) Proactive and AI-driven sourcing strategies (5:57) AI's impact on industries and investment strategies (6:55) History, evolution, and fund strategy at Genexx (9:25) Capital markets, continuation vehicles, and fund challenges (13:16) Leadership, management, and upscaling portfolio teams (17:19) Friction in investing and selling businesses (18:48) Lower middle market and future of private equity (23:37) Motivations and advice for private equity professionals (26:28) Closing remarks