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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

We also know that private equity funds have outperformed public equity markets over the last three decades , even after the fees they charge are accounted for. In financial engineering, PE investors provide strong equity incentives to the management teams of their portfolio companies.

CAPM 8
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Stop Trying to Predict Which New Products Will Succeed

Harvard Business Review

Is market performance predictable for a specific product or class of products? Worse still, we will punish employees even if they do everything right, and create incentives to avoid unpredictable products, even though these products are essential for growth. Look at the variance of your new-market products.