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Corporate Governance Should Combine the Best of Private Equity and Family Firms

Harvard Business Review

The public corporation is typically bedeviled by the gap between managers’ and shareholders’ interests. In private equity, managers and shareholders are closely connected. Over the years, governance has attempted to close that gap by aligning incentives with measures of performance. These attempts have often failed.

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Private Equity’s New Phase

Harvard Business Review

The types of private equity firms and the approaches to managing these firms has evolved over the last 40 years through three general phases. This phase was loosely called leverage buy out (LBO) from about 1979 to 1990 and included over 2,000 LBOs. In this phase, the acquired property is not just managed, but transformed.

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