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

Harvard Business Review

In financial engineering, PE investors provide strong equity incentives to the management teams of their portfolio companies. Furthermore, few PE investors explicitly use the capital asset price model (CAPM) to determine a cost of capital. Private equity as we define it in this paper does not include venture capital investments.).

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Stop Trying to Predict Which New Products Will Succeed

Harvard Business Review

And, if prediction falls outside of an acceptable range, we should hold our teams accountable for predicting poorly. In contrast, when performance cannot be predicted, a process geared for prediction makes no sense. Outcomes will usually be much worse than predicted, and we will waste design, production, and distribution resources.