{"id":283137,"date":"2023-03-07T17:10:47","date_gmt":"2023-03-07T22:10:47","guid":{"rendered":"https:\/\/qa.bluevaultpartners.com\/?p=283137"},"modified":"2023-09-16T20:49:19","modified_gmt":"2023-09-17T00:49:19","slug":"cais-evolving-drivers-of-private-equity-value-creation","status":"publish","type":"post","link":"https:\/\/qa.bluevaultpartners.com\/cais-evolving-drivers-of-private-equity-value-creation\/","title":{"rendered":"CAIS: Evolving Drivers Of Private Equity Value Creation"},"content":{"rendered":"
March 7, 2023 | Andrew Snyder | CAIS<\/p>\n
Once considered by some to be \u201ccorporate raiders\u201d who used junk-bond financing to take over companies, slashing spending and cutting workforce in an attempt to generate outsized returns, private equity has evolved.<\/p>\n
As our analysis here aims to unpack, how private equity managers have driven value for their investors has changed over time as the industry has matured and managers have attempted to differentiate in an increasingly competitive environment.<\/p>\n
As private equity has developed as an asset class through multiple market cycles, a variety of value creation strategies has emerged, going in and out of style and effectiveness. These strategies may focus on a portfolio company\u2019s operations, capital structure, or governance\u2014the combination of which may impact the company\u2019s revenue, margins, cashflow, and ultimately, its valuation. Over time, as the private equity industry grew, certain strategies have become more commoditized; in other words, tactics that were once differentiators for an asset manager may have since lost their competitiveness.<\/p>\n