About the report

Since the private equity heyday of the 1980s, when financial engineering ruled the playbook for this novel type of investing, a lot has changed. This white paper looks into strategies fund managers in private equity use to generate value.

Key highlights

• ‍What makes private equity unique? Private equity is a unique asset class, often distinguished from public equities due to the asset’s illiquidity. This illiquidity has a clear rationale and direct consequences.

• ‍Private equity focusing on the fundamentals In the wake of strong competition and rising valuation multiples, successful fund managers have differentiated themselves by focusing on operational value creation, as a more persistent and replicable way of creating value within their portfolio companies.

• ‍Persistence in value creation Whilst the persistence of performance in private equity funds is a highly debated topic, research has shown that only operational improvement is a replicable source of value creation as compared to the other performance components.

‍‍‍‍‍Important notice: This content is for informational purposes only. Moonfare does not provide investment advice. You should not construe any information or other material provided as legal, tax, investment, financial, or other advice. If you are unsure about anything, you should seek financial advice from an authorised advisor. Past performance is not a reliable guide to future returns. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Subject to eligibility.