Private equity, from a financial model to a genuine company builder

From finance to business: initially perceived as a form of financing, private equity has become a genuine business structure, where the main objective is to create long-term operational value.

An efficient governance model: unlike listed companies, which are subject to quarterly results, private equity funds can take a long-term view. This makes it possible to recruit the best talent, remunerate them appropriately and develop companies over cycles of five to ten years.

Resilience in the face of market conditions : since the 1980s, when interest rates were at 15%, the most resilient private equity firms have proved that they can adapt and thrive whatever the economic conditions.

According to Steve Klinsky, the private equity managers who will succeed will be those capable of becoming true company builders, far from a mere financing role.