Harvard Business Review

JUNE 18, 2015

What have been less explored are the specific actions taken by private equity (PE) fund managers. In a survey of 79 PE firms managing more than $750 billion in capital, we provide granular information on PE managers’ practices and how firms’ strategies relate to the characteristics of their founders.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

AUGUST 5, 2014

There are, of course, individual firms that succeed in generating venture rates of return. But they are too small in size and too few in number to make up for the vast majority of funds that fail to generate attractive returns (or any returns) for investors. LPs pay VCs like asset managers, not investors.

Venture Capitalist 17

Venture Capitalist Asset Management Rate of Return Industry 17

Harvard Business Review

FEBRUARY 26, 2016

Founding teams eager to raise capital to grow their companies enter into long-term partnerships with VC firms they don’t know well. After all, the best performing VC firms, by definition, have experience identifying and working with high-performing teams, helping startup companies grow rapidly, and guiding them through successful exits.

Due Diligence 8

Due Diligence Entrepreneur Rate of Return Long-term 8

Harvard Business Review

DECEMBER 16, 2016

Data scientists continue to be in high demand, but companies are also scrambling to attract or develop “business translators” who can ask the data science team the right questions and apply the results to practical business problems. Another critical piece of the puzzle is acquiring the right capabilities.

Industry 8

Industry McKinsey Early Adopters Rate of Return 8

Harvard Business Review

SEPTEMBER 18, 2017

But what much of the VC world might not realize, is that female-led firms may have a higher rate of return on average than male-led firms. Indeed, fewer than 5% of all VC-funded firms have women on their executive teams, and only 2.7% While this is true of start-up’s in general, recent data show that in the U.S.,

Venture Capitalist 8

Venture Capitalist Entrepreneur Sample Rate of Return 8

Harvard Business Review

JANUARY 26, 2012

Bill Ackman's hedge fund Pershing Square, for example, has $9 billion in assets under management and fewer than ten investment professionals. There are parallels with the music, publishing, and movie industries where returns are still largely driven by blockbusters rather than the long tail.

Disruptive Innovation 14

Disruptive Innovation Hedge Venture Capitalist Venture Funding 14

Harvard Business Review

APRIL 30, 2015

You’ve got an idea for a new product line, a way to revamp your inventory management system, or a piece of equipment that will make your work easier. You’ll likely be asked to show that the return on the investment will be better than your company’s cost of capital. . or 11% as the discount rate.

Cost of Capital 8

Cost of Capital Cost Finance Discount 8