Turn, Turn, Turn: A New Season Of Private Equity Performance
- Topics:
- Equity
- Tags:
- Finance,
- Financial Accounting,
- Financial Services,
- Financing,
- Investment,
- Investment Opportunity,
- Private Equity,
- Venture Economics
- Source:
- Venture Economics
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Overview: The article asserts that private equity appears to be emerging from perhaps the most difficult period in recent memory. While there has been some improvement in the availability of attractive investment opportunities and more reasonable availability of financing alternatives, a tone of temperance remains. Several useful conclusions has been drawn from these observations as funds consider their strategies and efforts to generate superior returns in the future. It suggests people to more aggressively manage the postacquisition portfolio, embrace an increased, but manageable, level of risk, divest more strategically, etc. Private equity will continue to play an important role as a catalyst for change and as a valuable financier of growth and innovation. As the economy regains its footing, financing becomes more reasonable, and as multiples stabilize and grow, the number of attractive investment opportunities will rebound. Traditional approaches will likely prove insufficient in what may be a maturing market. Like the companies in which they invest, private equity funds must develop differentiated strengths, new strategies and a new set of capabilities to generate superior returns and sustained growth.
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Format: PDF | Size: 454KB | Date: May 2002 | Pages: 2
