Over the past few decades, private equity has generated strong absolute returns and has meaningfully outperformed public equity—but that was in a world largely characterized by macroeconomic and geopolitical stability, declining interest rates and equity market tailwinds.

Can private equity continue to generate strong absolute and relative returns against a background of greater uncertainty, higher-for-longer rates and full valuation multiples?

When we identify the range of levers that private equity managers can pull to create value and generate returns, we find that some are likely to remain effective today while others have lost much of their power. We think this has important implications for investors.

The Seven Value-Creation Levers

We identify seven levers that private equity managers use to generate returns depending on the idiosyncrasies of investee companies and general market conditions.

You can now read the full whitepaper at the link below