Private Equity’s New Phase

Harvard Business Review

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.

LBO 16

Corporate Governance Should Combine the Best of Private Equity and Family Firms

Harvard Business Review

We believe so — it is a form of governance that is much older than the public and private equity models, one developed in sophisticated Western capital markets. It takes time and courage to establish a chocolate habit in a completely new market, without compromising the original brand name, quality, or taste standards. In addition to the hybrid alternative, Western governance models are being challenged by a mutation of the classic private equity–leveraged buy-out model.