Private Equity’s New Phase

Harvard Business

The types of private equity firms and the approaches to managing these firms has evolved over the last 40 years through three general phases. In phase one (buy and sell), PE investors looked for the equivalent of a “fixer-upper house” — a dilapidated company in a good industry that could be purchased at a discount and, after the business equivalent of some fresh paint and new appliances, resold for a profit.

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