Article

Private Equity Disciplines for the Corporation

The private equity world has delivered astounding investment returns over the past decade.

Par Dan Haas, Tom Holland and Paul Rogers

First published on décembre 01, 2002
min


The private equity world has delivered astounding investment returns over the past decade. While this trend will unquestionably be affected by the hang over of the big tech and internet fallout, there is still a long-term trend for superior performance when comparing private companies with public ones. After studying over 2,000 private equity transactions, the authors propose that five management disciplines outline the essential difference between public and private companies: defining a limited investment thesis; getting managers to act like owners; focusing on a few measures; making capital work hard; making the center an active shareholder. Download PDF

The private equity world has delivered astounding investment returns over the past decade. While this trend will unquestionably be affected by the hang over of the big tech and internet fallout, there is still a long-term trend for superior performance when comparing private companies with public ones. After studying over 2,000 private equity transactions, the authors propose that five management disciplines outline the essential difference between public and private companies: defining a limited investment thesis; getting managers to act like owners; focusing on a few measures; making capital work hard; making the center an active shareholder.

Download PDF