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

Harvard Business Review

” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering. In financial engineering, PE investors provide strong equity incentives to the management teams of their portfolio companies.

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How Facebook Uses Empathy to Keep User Data Safe

Harvard Business Review

Security is often approached as an engineering-led effort in which cross-functional teams from research, design, or product are less important. Research shows that over time, fearful communications designed to scare people actually have a diminishing rate of return in helping consumers avoid online threats.

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Morning Advantage: Can Markets Cure Cancer?

Harvard Business Review

"With proper financial engineering, I am absolutely convinced we can solve cancer," MIT professor Andrew Lo says. Investors will not only have the potential for a decent rate of return but can be secure in the knowledge that they’re "part of the social mission to cure.". So how do you pay for it?

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The Comprehensive Case for Investing More VC Money in Women-Led Startups

Harvard Business Review

But what much of the VC world might not realize, is that female-led firms may have a higher rate of return on average than male-led firms. One such firm, the Perkins Fund, has launched standouts like Goldieblox, a toy company founded by a woman engineer who captured mainstream attention with girl-centric advertising.

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Could a Four-Year-Old Do What Carl Icahn Does?

Harvard Business Review

r>g: Economist Thomas Piketty’s formula for spiraling wealth inequality, in which the rate of return on capital is higher than economic growth, has its critics. stock markets over Icahn’s career, it’s a simple factual assertion — the total return on the S&P 500 has substantially outstripped economic growth.

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American CEOs Should Stop Complaining About Uncertainty

Harvard Business Review

In 1998, Mo was running a highly profitable and stable engineering firm serving European mobile operators. He knows Rwandans and Ivorians will not tolerate a prolonged return to instability now that they have seen sustained growth and food security are within reach. Mo Ibrahim, founding CEO of Celtel.