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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

This phase was loosely called leverage buy out (LBO) from about 1979 to 1990 and included over 2,000 LBOs. The primary focus was on fixing the acquired firm through financial restructuring, dramatic cost cutting, and strategic slashing. Large private equity firms (e.g.,

LBO 8