He suggested that European buyouts continue to hold an advantage over the U.S. because they generate more alpha. That statement is easy to overlook, but it explains why so much institutional capital continues flowing into Europe.

Most people think investment returns come from finding markets that grow the fastest. In reality, there are two ways to make money:

The first is beta—simply riding the market higher. If every company becomes more valuable because the economy is growing, everyone benefits.

The second is alpha—creating value that wasn't there before.

Alpha comes from buying better, operating better, and selling better than everyone else.

That is where Europe becomes interesting.

Unlike the United States, Europe isn't one market. It is dozens of markets with different languages, regulations, business cultures, and ownership structures. Thousands of successful companies remain family-owned, many businesses are never broadly marketed for sale, and relationships often matter more than auction processes.

For experienced investors, that creates opportunity.

A great company purchased at the right price can produce significantly better returns than an equally good company purchased after competing against twenty other bidders.

In many parts of the U.S., almost every attractive private company is widely marketed, heavily intermediated, and bid on by numerous private equity firms. Competition pushes valuations higher and compresses future returns.

Europe looks different.

The inefficiencies create room for skilled investors to generate alpha through sourcing, operational improvements, and patient execution. As Rob Lucas pointed out, that advantage continues to exist today.

For me, this is one of the strongest long-term investment arguments for Portugal.

Portugal's hospitality sector remains highly fragmented, with many exceptional owner-operated hotels, tourism businesses, and serviced apartment platforms. These businesses are often overlooked by larger institutional investors, yet they benefit from one of Europe's strongest long-term tourism markets. The opportunity isn't simply that tourism continues to grow.

The opportunity is finding businesses before everyone else does, helping them operate more efficiently, improving the guest experience, increasing profitability, and ultimately creating enterprise value that didn't exist before.

That's the difference between investing in growth......and creating alpha.

Sometimes the best opportunities aren't found in the fastest-growing markets. They're found in the markets where expertise, relationships, and execution still matter.