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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

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

Harvard Business Review

We classify private equity as buyout or growth equity investments in mature companies. Private equity as we define it in this paper does not include venture capital investments.). Rather, they rely on internal rates of return and multiples of invested capital.

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