Private Equity in Asia Lags in Operational Value Creation

 GPs ranked finding talented operation experts first as their biggest challenge in creating operational value today in Asia …

Additionally, the study points out that implementation of operational value-creation strategies is particularly challenging in Asia. According to 86% of GPs, the reason for this is that minority ownership stakes, which are common in Asia, tend to limit the ability of a private-equity firm to drive true operational change.

As a result, says the study, GPs need to build a close working relationship with players such as the company founder and existing top management; in fact, the majority of GPs surveyed (61%) cite this strategy as the most effective way of carrying out operational improvements at such portfolio companies.

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