Private equity

A hybrid model can balance the short term with long-term continuity.

They don't use the financial tools they learned in B-school.

Deals ultimately succeed or fail because of the people involved.

The unique benefits of private equity investment

It prioritizes short-term profits over patients’ health.

In good times and bad, the top private equity firms have outperformed most businesses over the past forty years–even during down cycles. Clearly, PE firms have had to adjust their deal flow but the way that leading players operate their portfolio companies serves as a model for public firms, especially during an economic squeeze. That’s […]

As the dust settles on the recent frenzy of private equity deals (including transactions topping $20 billion), what lessons can companies glean? Directors...

A year ago, most of us couldn’t name a single asset in the Cerberus Capital Management portfolio. Today, we know them as the private equity firm that bought controlling interests in Chrysler, General Motor’s financing arm, and — as of this week — United Rentals, one of the world’s largest equipment rental companies. In spite […]

Instead of casting a wide net, try a more strategic approach.

If you want to be successful, you have to harness the talent. The top private equity firms have a genius for hiring superior talent. All organizations need great people, but PE measures talent with one test only: performance. It’s not that private equity firms are heartless. Rather, their three- to five-year time horizon doesn’t allow […]

A study of 42 leveraged buyouts produced surprising findings that should guide policy reforms.

They overvalue smarts and urgency.

Private equity fund performance is most often reported in a way that exaggerates the truth. A modified calculation gives a more accurate read of performance...

A new study of private equity buyouts shows that, on average, U.S. acquisitions made in "red" (Republican) states deliver significantly higher returns...

The huge sums that private equity firms make on their investments evoke admiration and envy. Typically, these returns are attributed to the firms' aggressive...

Despite their reputation in the 1980s as corporate raiders, most private equity firms attempt to improve the performance of their portfolio companies...

Doing business starts with building mutual trust and respect.

Historically, the efforts of private equity firms to address leadership challenges have been limited primarily to replacing portfolio-company CEOs. Now,...

How to identify and attract investors who will support your long-term, stakeholder-focused plans.

Private equity investors in Asia are fine-tuning the art of the turnaround using three principal strategies.