How to face the challenges of the current private equity environment.
Favored by low interest rates, investments in the alternative asset class of private equity have risen to record levels in recent years. As a result, private equity funds currently possess capital at historic highs. In order to generate significant double-digit returns, companies are now being sought in which these free funds can be invested and multiplied over an investment horizon of three to seven years.
Due to the high competition between different private equity investors, prices for company acquisitions have also peaked. However, high purchase prices also jeopardize the achievement of the targeted returns. What strategies are private equity investors currently pursuing to achieve corresponding increases in the value of their portfolio companies? The new strategy paper from Porsche Consulting publishes the results of a study among market participants in the German private equity industry and answers the question about successful private equity strategies.
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