Private equity firms seek out companies in which they believe they can unlock significant value by changing the business strategy, investing new capital or injecting new managerial talent. Private equity ownership fosters a climate in which companies can do what is necessary to achieve increased profitability over the long run.
Winning private equity strategies must differentiate themselves on the basis of fundamental business improvements that often are more difficult to achieve by current managers working under the constraints of public ownership.
Public and private pension funds, endowments and foundations are the largest investors in private equity funds. Returns from private equity have translated into stronger public employee pension programs, more funds for college financial aid and scholarships and more funds for research and other causes supported by charitable foundations.
According to the most recent research, through 2009 private equity funds worldwide have distributed more than $1.6 trillion to limited partner investors.
Private equity delivers superior returns to its investors, including public and private pension funds, university endowments and charitable foundations.
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