Buyout firms’ returns: The image may not reflect the reality

A booming leveraged finance market has raised questions about the industry’s commitment to the operational improvement model

Monday 22 September 2014 at 17:00

Buyout firms have long claimed they produce better companies. It is an assertion that became particularly pronounced in their marketing and investment strategies post-crisis, from 2009.

Increasingly concerned about the ability to generate superior returns during the downturn, swathes of operating partners - industry specialists dedicated to hands-on transformation of portfolio companies - joined some of Europe's biggest private equity houses.