Private Equity and Venture Capital in Europe

19.3. Strategies and Business Models of Private Equity Firms

To analyze strategy within private equity firms it is useful to identify business models that are common in Europe. A focus–ownership–positioning (FOP) approach is helpful to distinguish the

• Focus of investment made by the private equity firm, related to the country/countries area of investment
• Ownership of private equity firms, which conditions the style of investment and the long-term profit goals
• Positioning of the private equity firm on the market, related to the competitive strategy to select investment

Focus, ownership, and positioning are the three dimensions of a business model in the private equity industry and every private equity firm has a different combination of ...