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Do PE firms create value? How?
Uncover the drivers of private equity value creation — revenue growth, multiple expansion, and margin improvement — backed by deal-level data from 10,000+ investments.
Companies with a more active buy-and-build strategy deliver higher returns across all performance quartiles. It contributed to ~40-45% of returns in 2019-21, driven by higher exit multiples and attractive entry valuations. They benefit from higher growth rates and lower entry multiples compared to large, mature enterprises.
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