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Private Equity’s New Phase

Harvard Business Review

The types of private equity firms and the approaches to managing these firms has evolved over the last 40 years through three general phases. This phase was loosely called leverage buy out (LBO) from about 1979 to 1990 and included over 2,000 LBOs. In this phase, the acquired property is not just managed, but transformed.

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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

And the average long-term ROE is more than 25%, reflecting improved efficiency combined with greater reliance on financial leverage at most companies. Even when an organization has a robust pipeline of growth ideas and manages to keep many of them alive, it may lack the human capital needed to accelerate growth.

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