Meerkatt, H.; Liechtenstein, Heinrich von
As the financial crisis made its mark two years ago, Heinrich Liechtenstein and Heino Meerkatt predicted a significant shakeout in the private equity industry. In their new white paper, the two experts now offer private-equity firms the key to survival: by creating business value through operational performance.
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Meerkatt, H.; Liechtenstein, Heinrich von
Having predicted a major shakeout in the private-equity industry in the wake of the twin crises of 2008, authors Heino Meerkatt and Heinrich Liechtenstein have more news. Capital is still available and most investors will deliver. Yes, there will be more casualties: cash-strapped anchor investors may drag their firms down. Yet, by gaining power, investors will continue to force the industry through a necessary evolution.
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Meerkatt, H.; Liechtenstein, Heinrich von
With many private-equity firms not expecting to raise the next fund, between 20 and 40 percent of LBO firms could go under within the next three years as a result of the economic crisis. Amidst this dire outlook, Heino Meerkatt of BCG and Heinrich Lichtenstein of IESE suggest three main steps that firms can take to confront the crisis.
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Liechtenstein, Heinrich von; Meerkatt, H.; Prats Moreno, Mª Julia; et al.
Despite turmoil in global credit markets, private equity is alive and well, with ample funds for investment. So says a new study from The Boston Consulting Group and IESE Business School, noting that rather than creating value through leverage, the sector's focus seems to be shifting to operational improvement and growth. The shift away from credit dependency means that the current crunch will affect the sector less than predicted. Although private equity does not, on average, outperform the public capital markets on a risk-adjusted basis, the best private-equity firms do consistently "beat the fade," says the study. In short, the funds avoid reverting to average returns and are likely to outperform the market over time.
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