What private equity success looks like in 2026 | Flor Kassai, Inflexion | Ep. 86
Florencia Kassai, Managing Partner and Head of Buyout at Inflexion, joins Ross Butler following Inflexion’s latest buyout fundraise to discuss what it takes to invest well in a more selective private equity market.
The conversation ranges from sub-sector depth and buy-and-build execution to direct origination, continuation funds, European expansion and why Flor believes private equity is ultimately a talent business more than an investment business.
Covered in this episode:
- Why 2026 is a tricky but potentially attractive environment for disciplined investors
- How Inflexion repeats sub-sector playbooks across strategies and geographies
- Why talent, trust and local relationships matter in mid-market origination
- How continuation funds can extend ownership of strong assets
- What darts, skincare, TICC and wealth management reveal about mid-market opportunity
The big take
Private equity’s edge in 2026 is the ability to identify resilient companies with pricing power, then support them with sector knowledge, talent upgrades, operational expertise and long-term local relationships.
Flor’s central point is that the best firms are in the talent business. Good management teams identify the next problem before investors do. Strong investors know how to surround those teams with the people, data, commercial support and M&A capability needed to move faster.
Why does 2026 sharpen the private equity playbook?
Flor describes 2026 as a difficult but fascinating environment for investing. Geopolitical pressure, AI disruption and wider uncertainty all make deal selection harder.
But those same conditions also sharpen the focus. Investors need businesses with pricing power, proper margins and a reason to exist. In other words, this is a market that rewards fundamentals.
The implication is clear: in uncertain markets, generalised sector knowledge is not enough. Investors need to understand the specific verticals where they have repeatable experience, relationships and insight.
Why does sub-sector expertise matter more than sector labels?
Inflexion invests across six broad sectors: financial services, business services, industrials, consumer, technology and healthcare. But Flor says the real work happens beneath those labels, in narrow verticals where the firm can build accumulated advantage.
One example is testing, inspection, certification and compliance. Inflexion has invested repeatedly in the TICC space, including Celnor, a platform launched to consolidate a fragmented market.
The point is not just to know a sector. It is to compound knowledge. Each investment teaches the team what works, what fails, how quickly acquisitions can be integrated and where management teams typically need support.
How does Inflexion think about management teams?
For Flor, talent is not one diligence item among many. It is the central variable.
She argues that getting the team right is 95% of the equation. A strong management team will spot problems before the investor does, diagnose what needs to change and ask for targeted support.
That changes the investor’s role. The private equity firm is not there to dictate from the outside, but to provide the infrastructure around the team: talent, commercial support, AI expertise, international expansion, pricing, M&A and specialist operating help.
This is why Inflexion has invested heavily in its Value Acceleration team, particularly its talent capability.
Where do continuation funds fit?
Inflexion’s continuation fund was raised to support four portfolio companies where the firm believed there was still meaningful value to create.
Flor frames this as a practical question. If you already own a business you know well, with a management team that wants to keep working with you and a clear M&A-led growth plan, why sell it only to spend years searching for another business of similar quality?
The continuation structure allowed Inflexion to provide liquidity to existing investors while raising additional capital to support the next phase of growth.
Flor is careful to acknowledge that continuation funds can be used well or badly. The distinction is whether the structure genuinely supports a clear value-creation plan, or merely delays a difficult exit.
Is buy-and-build the whole strategy?
No. Flor is clear that M&A is a tool, not the strategy itself.
In some cases, such as Celnor or Absolute Financial Group, buy-and-build is central to the value-creation plan. In others, such as Medik8, growth can be primarily organic.
M&A can accelerate international expansion, entry into adjacent markets or product-line development. But it also creates cultural risk. If an acquired company is poorly integrated, the value can disappear quickly, particularly in people-heavy businesses.
The challenge is to keep what made the acquired business special, without crushing it under the mothership.
What Flor’s career reveals about private equity
Flor did not set out to become a private equity investor. Originally from Argentina, she studied industrial engineering and initially expected to work in manufacturing.
Her career took her from an internship at ICI Paints to private equity in Latin America, JP Morgan in New York, Wharton, Bain & Company in London, Hg Capital and then Inflexion, which she joined in 2011.
It is a career that combines analytical training, international mobility and commercial judgement. It also reflects one of the themes of the episode: private equity is not only about numbers. It is about people, adaptability and pattern recognition across many different business contexts.
Guest
Flor Kassai is Managing Partner and Head of Buyout at Inflexion. She leads Inflexion’s Buyout Fund and is a member of Inflexion’s Executive, Investment and Responsible Investing Committees. She joined Inflexion in 2011, having previously worked at Hg, Bain & Company and JP Morgan.
You can watch our episode with Flor’s Inflexion-colleague, David Whileman, here.
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