The Globalization of Private Equity: What It Means for Founders

Private equity used to feel regional.

You knew the firms in your geography. You knew the bankers. You knew the buyers circling your industry.

That’s no longer the case.

Today, private equity capital moves globally. Funds based in New York are investing in Europe. European sponsors are acquiring U.S. founder-led businesses. Middle Eastern and Asian sovereign-backed capital is flowing into North American platforms. Cross-border deals are no longer exceptions—they’re increasingly common.

For founders, this globalization creates opportunity—but also complexity.

After nearly three decades as an entrepreneur, investor, and advisor, I’ve watched the buyer universe expand dramatically. When I sold my first company, the field of buyers felt narrower. Today, when we run processes at Legacy Advisors, it’s not unusual to engage firms across multiple continents.

As I explain in my book, The Entrepreneur’s Exit Playbook, expanding the buyer universe increases optionality. And optionality increases leverage.

Why Private Equity Has Gone Global

Several forces have driven the globalization of private equity.

First, institutional capital has become global. Pension funds, sovereign wealth funds, and endowments allocate capital across borders. PE firms follow that capital.

Second, competition has intensified domestically. Expanding internationally allows firms to pursue new sectors, diversify risk, and deploy capital more efficiently.

Third, technology has lowered barriers. Cross-border diligence, data rooms, and communication are frictionless compared to a decade ago.

On the Legacy Advisors Podcast, we’ve discussed how globalization has expanded—not replaced—the domestic PE landscape.

More Buyers Means More Competition

From a founder’s perspective, globalization expands the competitive field.

A U.S.-based company may now attract interest from:

• Domestic middle-market PE firms
• European sponsors seeking U.S. exposure
• Canadian pension-backed funds
• Sovereign wealth-backed platforms
• International family offices

More bidders often translate to stronger leverage—if managed correctly.

At Legacy Advisors, we actively evaluate international buyer appetite when positioning founder-led businesses for sale.

Cross-Border Strategic Fit

International PE firms often pursue U.S. acquisitions for strategic reasons:

• Platform entry into new markets
• Currency diversification
• Sector expertise replication
• Access to innovation ecosystems

If your business operates in a scalable or niche vertical, global buyers may view it as an entry point into a broader geographic expansion.

In The Entrepreneur’s Exit Playbook, I emphasize that understanding a buyer’s strategic thesis strengthens negotiation clarity.

Complexity Increases With Geography

Globalization brings opportunity—but also additional complexity.

Cross-border transactions may introduce:

• Regulatory reviews
• Foreign investment scrutiny
• Tax considerations
• Currency exposure
• Cultural differences
• Extended timelines

Deal certainty must be evaluated carefully.

On the Legacy Advisors Podcast, we often stress that valuation strength should be balanced against execution risk.

Governance and Cultural Alignment

International buyers may bring different governance styles.

Board dynamics, reporting cadence, and decision-making norms can vary across regions.

Some global firms operate with highly structured oversight. Others empower local management heavily.

Founders staying involved post-close should assess cultural alignment as seriously as economic structure.

At Legacy Advisors, we prioritize governance clarity when cross-border buyers are involved.

Currency and Valuation Dynamics

Currency fluctuations can create arbitrage opportunities.

A strong foreign currency relative to the dollar can make U.S. assets attractive to international buyers.

Conversely, currency volatility can impact pricing negotiations or deal structure.

Understanding these macro layers adds nuance to valuation discussions.

In The Entrepreneur’s Exit Playbook, I explain that valuation is influenced not just by performance—but by capital flows.

Regulatory Scrutiny

Cross-border deals may trigger regulatory review under foreign investment regulations or national security frameworks.

While most lower middle market deals clear smoothly, founders should be aware that timelines may extend.

At Legacy Advisors, we evaluate regulatory exposure early when engaging international buyers.

The Rise of Sovereign and Pension Capital

Another significant development is the increasing direct involvement of sovereign wealth funds and large pension plans.

These institutions often:

• Invest directly
• Partner with PE sponsors
• Seek long-duration assets

Their capital bases are substantial and patient.

This has introduced new dynamics into competitive processes.

On the Legacy Advisors Podcast, we’ve discussed how large pools of global capital have permanently altered the buyer landscape.

What It Means for Valuation

Global capital increases competition—but not uniformly.

High-quality assets with:

• Recurring revenue
• Strong margins
• Scalable infrastructure
• Clear leadership

benefit most from expanded buyer pools.

Businesses lacking institutional readiness may struggle to capture international interest.

Preparation matters even more when the field broadens.

Strategic Preparation for Global Buyers

Founders preparing for a global buyer audience should ensure:

• Financial reporting meets international scrutiny standards
• Governance documentation is clean
• Compliance protocols are clear
• Leadership depth is demonstrated
• Growth narratives are scalable across markets

In The Entrepreneur’s Exit Playbook, I emphasize that professionalization increases buyer confidence—especially across borders.

The Long-Term Trend

Private equity globalization is unlikely to reverse.

Capital moves toward opportunity.

As emerging markets mature and institutional allocations continue to expand, cross-border deal activity will likely increase.

For founders, this expands the strategic landscape significantly.

On the Legacy Advisors Podcast, we often remind listeners that the buyer universe is larger than it appears locally.

Find the Right Partner to Help Sell Your Business

The globalization of private equity expands opportunity—but also introduces complexity.

Understanding cross-border buyer motivations, regulatory considerations, and governance differences ensures founders capitalize on expanded competition without compromising certainty.

At Legacy Advisors, we help founders position businesses for both domestic and international buyers—so global capital becomes a strategic advantage, not an execution risk.

Because in today’s market, your buyer may not be down the street.

They may be across the world.

Frequently Asked Questions About The Globalization of Private Equity: What It Means for Founders

Are international PE firms really interested in lower middle market founder-owned businesses?

Yes—more than ever. Global capital has moved steadily downstream into the lower middle market, especially in sectors with recurring revenue, fragmentation, or strong growth potential. International PE firms often view U.S.-based founder-led companies as entry platforms into attractive markets. In my book, The Entrepreneur’s Exit Playbook, I explain that expanding the buyer universe increases optionality. And optionality strengthens leverage when managed strategically.

Do cross-border PE deals carry more execution risk?

They can. Cross-border transactions may involve regulatory reviews, tax structuring considerations, currency exposure, and cultural differences in governance style. None of these are insurmountable—but they require preparation. On the Legacy Advisors Podcast, we often stress that valuation strength should be weighed against certainty. A slightly lower domestic offer with high certainty may sometimes be preferable to a higher but more complex cross-border proposal.

How do currency fluctuations impact international PE offers?

Currency strength can create pricing advantages or negotiation leverage for global buyers. For example, if a foreign currency is strong relative to the U.S. dollar, U.S. assets may appear more attractive. However, volatility can also affect deal structuring or timing. At Legacy Advisors, we evaluate macro currency factors early when international interest emerges, ensuring founders understand both upside and risk.

Will governance feel different under an international PE owner?

It might. Governance norms, reporting cadence, and communication styles can vary by region and firm culture. Some global firms operate with highly structured oversight, while others empower local leadership heavily. In The Entrepreneur’s Exit Playbook, I emphasize that governance alignment matters as much as economics. Founders staying involved post-close should assess cultural compatibility carefully.

Should founders proactively pursue international buyers in a sale process?

In many cases, yes—if positioned correctly. Expanding the buyer universe can increase competitive tension and surface stronger structures. But global outreach must be deliberate and well-managed. On the Legacy Advisors Podcast, we often highlight that broader competition drives clarity. At Legacy Advisors, we structure processes to evaluate both domestic and international interest strategically—so expanded access translates into stronger outcomes.