People First Investing

Alpine Investors has one of the most unique models in private equity. Instead of backing existing executive teams or founders, they purposely seek out businesses where the CEO needs or wants to be replaced.

They've pursued this strategy since the Great Financial Crisis, when founder Graham Weaver realized that people are the greatest source of leverage in any business. This insight led him to create an in-house CEO school for MBA students—a bold move that has paid off handsomely.

The results speak for themselves. According to Graham, Alpine's last three funds have achieved 5x returns, which in the world of private equity is almost unheard of.

I recently listened to a podcast featuring Scott Cook, who has completed over 100 M&A transactions during his time as an operator. When asked what aspect of integrations gets overlooked most often, his answer was simple: "people."

He meant this in two ways.

First, people are the best source of ground truth information about what's actually happening in a business. We can't make effective changes if we don't understand what's working and what's not—intervention without diagnosis is malpractice.

Second, the immediate reaction any person has when their company is acquired by private equity is generally, "What will happen to me?" In these moments, authenticity and transparency become crucial, yet so many leaders choose to operate in the darkness for fear of potential backlash.

It's remarkable how often we overlook what should be obvious: people are the most important part of any business. We obsess over financial models, market dynamics, and competitive positioning—all important factors. But at the end of the day, it's people who execute strategy, build relationships with customers, and drive innovation.

Alpine's success isn't just about finding better deals or having superior financial engineering. It's about recognizing that the right leadership can transform an entire organization. Scott Cook's insights remind us that even in the complex world of M&A, the human element remains paramount.

Perhaps the most counterintuitive aspect is that this people-first approach isn't just the right thing to do—it's also the most profitable. When we truly invest in understanding and developing our people, the returns follow naturally.

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