Note: The securities mentioned in this podcast are not considered a recommendation to buy or sell and once should not presume they will be profitable. In this episode of The Private Equity Podcast , Alex Rawlings welcomes Scott Neuberger , Co-Founder and Managing Partner of Karmel Capital , a private equity firm investing in late-stage software and AI companies. Scott shares deep insights into how Karmel Capital leverages AI within its investment process , how they identify and evaluate late-stage tech businesses , and why they’re placing strategic bets in the infrastructure layer of AI . Scott explains the firm's capital efficiency-focused strategy , how they rank companies, and what metrics truly distinguish iconic businesses from the rest. He also discusses how AI is transforming internal operations and why firms must go beyond the hype to truly implement impactful AI solutions. Later in the conversation, Scott offers practical advice to portfolio company leaders on how to begin leveraging AI meaningfully—starting with labor-intensive areas like customer support. He finishes by outlining Karmel’s top-down investment approach to sectors like cybersecurity and why infrastructure plays offer value and growth. Whether you're investing in tech, operating a portfolio company, or just curious about how AI intersects with private equity, this episode is packed with real-world insight. ⌛ Episode Highlights & Time Stamps: 00:03 – Introduction to Scott Neuberger and Karmel Capital 01:00 – Scott’s journey: entrepreneur turned investor 02:19 – The mistake of investing too early in venture capital 03:47 – Why Karmel focuses on measurable, repeatable metrics 04:45 – How they assess capital efficiency in tech companies 06:41 – Key metrics and importance of experienced management teams 08:38 – Evaluating human capital and talent within portfolio companies 10:05 – Zooming out: The “mosaic theory” of identifying strong investments 10:33 – How Karmel Capital uses AI internally for data collection & analysis 13:22 – AI investing: why infrastructure is Karmel’s focus 15:49 – Pick-and-shovel strategy: betting on infrastructure vs. applications 17:44 – Advice for portfolio execs on where to begin with AI 18:43 – Customer support as a high-impact AI use case 21:09 – Navigating noise in AI investing: how Karmel decides where to play 22:34 – Case study: AI in cybersecurity and the top-down analysis approach 24:59 – The arms race in cybersecurity: AI on both offense and defense 25:29 – Scott’s reading and listening habits (inc. 20VC podcast) 26:56 – How to contact Scott Connect with Scott Neuberger: 📧 Email:
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