What happens when you throw out the playbook of traditional private equity and instead build businesses with permanent capital, no exits, and no management fees? In this episode, I talk with Brent Beshore, founder and CEO of Permanent Equity, about a radically different approach to investing that focuses on ownership, compounding, and alignment with operators over decades—not years. Brent explains why avoiding leverage and fees isn’t just philosophically different but materially better for long-term outcomes, how Permanent Equity partners with founders who want legacy and culture to endure, and why patient reinvestment beats short-term optimization. We break down how permanent capital accelerates growth, how to think about cash flow vs. IRR optics, and the unique investor mindset required to succeed outside the traditional private equity model. Highlights: Why Permanent Equity uses permanent capital instead of typical PE fund structures How removing planned exits changes decision-making and drives better outcomes No management fees and minimal debt: aligning incentives with operators The power of long-term compounding inside small businesses Why distribution timing matters less than reinvestment discipline How culture and legacy factor into acquisition decisions The “cell phone test”: evaluating leadership and partnership quality Using downturns to make strategic progress rather than panic reactions Why cash flow is the core driver of long-term wealth creation How Permanent Equity thinks about growth vs. margin optimization Lessons on patience, discipline, and the psychology of long-term investing Guest Bio: Brent Beshore is the founder and CEO of Permanent Equity, an investment firm that acquires and builds small businesses with permanent capital and a long-term orientation. Unlike traditional private equity, Permanent Equity doesn’t plan exits or charge management fees, instead focusing on sustained cash flow growth, minimal leverage, and deep partnership with operators. Brent has spent his career refining this approach to deliver compounding outcomes across cycles by aligning incentives between investors and founders and giving businesses the time horizon they need to thrive. Under his leadership, Permanent Equity has developed a reputation for thoughtful acquisitions, disciplined reinvestment, and a culture-first approach to building enduring companies. Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at [email protected]. Stay Connected with David Weisburd: X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Capital: https://www.weisburdcapital.com/ Stay Connected with Brent Beshore: LinkedIn:https://www.linkedin.com/in/brentbeshore/ Questions or topics you want us to discuss on How I Invest? Email us at [email protected]. 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) Introduction (1:31) Compounding growth and institutional investor perspectives (4:34) No management fee structure and staff incentives (7:05) Responsible use of debt and industry buying opportunities (12:51) Differentiating from traditional private equity (16:02) Portfolio diversity and the cell phone test (20:07) Handling difficult personalities and problematic investments (23:22) LP relationships, trust, and long-term business views (28:28) The importance of quality in investments (30:55) Closing remarks