1. How Private Equity Builds Businesses
Who Benefits?

2. Slide
Private equity invests in bricks and
mortar, employees and management
teams, and entrepreneurs and ideas.
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3. Slide
At its core, private equity
is about strengthening
companies, making them
more competitive and
creating value.
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4. Slide
Have significant potential for growth.
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Are not living up to their full potential.
Are struggling and badly in need of repair.
Private equity and growth capital firms
invest in and often acquire companies
(referred to as portfolio companies) that…

5. Slide
The Investment Model
Private equity firms
invest capital, as well as
time, energy, expertise
and talent to improve
company performance.
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6. Slide
Growing Companies
“Industries where private equity funds
have invested in the past five years have
grown more quickly in terms of
productivity and employment.”
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- S. Bernstein, J. Lerner, M. Sørensen and P. Strömberg

7. Slide
Creating Value
The proportion of private
equity returns that is driven
by strategic and operational
improvements.
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36%

8. Slide
Private equity-backed companies increase
their net earnings through:
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Organic revenue growth
(responsible for over 40% of gains)
Cost reductions
(responsible for 25% of gains)
Acquisitions
(responsible for 25% of gains)

9. Slide
Increasing Competitiveness
Productivity growth at
private equity-backed
companies surpass
non-private equity-
backed companies by
two percentage points.
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10. Slide
Driving Innovation
Private equity-owned
companies pursue more
economically important
innovations than
non-private equity-owned
companies, as measured
by patent citations.
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11. Slide
Private Equity in Practice
Christopher Nassetta, President and CEO of Hilton
Worldwide on working with private equity.
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“From the standpoint of our business, being
owned by [private equity is] the best thing
that ever happened to Hilton. Hilton was a
good company that had the potential to be a
great company and [private equity] has
unleashed the ability for us to do that.”

12. Visit www.PrivateEquityAtWork.org to find out more
about the private equity industry.
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