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Private Equity Can Make Firms More Innovative

Harvard Business Review

If you ask someone who works in finance (as I had to) about PE and innovation, he or she will likely tell you that PE sponsors aren’t looking for the next big thing—they’re looking for companies that are dominant in a market, aren’t risky, and have a predictable and steady stream of cash to pay back debt.

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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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