The Secret of Success for Private Equity: How Do Private Equity Investors Create Value?

Hosted by: The Ernst & Young Transaction Advisory Services

In 2006, the Private Equity (PE) industry invested a record amount, U.S. $450b, in U.S. and European businesses, a 60% increase on 2005. PE also has become increasingly important for investors acting on behalf of a broad spectrum of the general public. The flow of investment into PE from pension funds increased in 2006 in both the U.S. and Europe, representing more than a quarter of new investment.

This rapid growth in PE success has brought with it increased scrutiny. What is clear is that PE firms are developing new strategies for successful investing, continuing to make PE an important factor in the world’s financial markets.

How Do Private Equity Investors Create Value?, the second annual report by Ernst & Young LLP, provides new facts and perspectives on how PE firms are consistently able to grow and strengthen the companies under their ownership.