Firms in the private equity sector are falling short of their operational targets following an investment or acquisition, according to a new survey conducted among 50 mid-sized and large investors in Northern America and Europe.
The private equity sector is on a high. Globally there are now just under 8,000 investment firms – up from 4,000 in 2006 – that together hold around $2.8 trillion of assets under management.
These private equity parties are continuously on the lookout for the best deals in the market. These companies have substantial growth potential on the back of strategic changes, whether they stem from accelerated growth, cost synergies, or (portfolio) restructuring. Last year private equity firms spent, according to Bain & Company, a staggering $440 billion on buyouts worldwide. However, as per a new study by US-based operations consultancy Maine Pointe, much of this value is found to be lost in the execution phase.