Lessons from Private Equity Any Company Can Use

What Is Going On in Private Equity?

Active investing has set a new standard—one that senior corporate leaders should evaluate and aspire to. Private equity, in particular, is changing the rules of the game. Why does PE matter to the broader corporate world? There are several answers.

There is a veritable flood of money out there, looking to be invested profitably. Part of the flood is owing to the fact that global pensions, institutional endowments, insurance company assets, and other sources of limited partner capital have been growing at record rates and are at all-time highs. In just the past three years, new fund-raising rounds by PE firms have brought in more than $1 trillion of capital globally—more than was raised cumulatively in the industry’s ...