Private equity is a heavily-regulated sector with many rules, regulations, and laws to follow. These established practices allow for an acceptable return on investment and ongoing efforts to drive profits. However, due to the growing greediness of modern-day private equity giants, these rules are sometimes ignored or even changed by these corporate entities to obtain greater returns for their shareholders. The following are mistakes made by modern-day private equity giants.
Lack of Innovation & Experimentation
Innovation is a key to distinguishing oneself from legacy firms. Even as early adopters in technology-driven healthcare, retail, and hospitality, private equity players have fallen behind in innovation. This is, in large part, because of the inherent conservatism inherent in private equity firms. Investors and veterans like Peter Comisar are risk-averse and have little appetite for investing in unproven businesses. If you do not innovate, you could end up being just another boring old … Read more