EY: How Can Private Equity Transform into Positive Equity?

The private equity (PE) industry is at an integral turning point, with the new focus on business transformation in PE firms’ portfolio companies linked with technological, market and administrative alterations. This is pushing PE firms to reconsider their strategies, products, and processes for doing business in a rapidly-developing global environment. EY commissioned ESI ThoughtLab (formerly Roubini ThoughtLab) to create a vision of the future of private equity based on strategic understandings from industry founders, leaders, and market visionaries.

 

Our research methods included:

  • Conducting high-level interviews with industry pioneers and top executives
  • Conducting interviews with pension fund executives, academic pundits and economists
  • Speaking with EY professionals and partners

 

Through our research, we found that in order to succeed in this next business phase, PE leaders must come to terms with numerous challenges that will proceed to modify the industry. Some of these key changes to the future state of PE include the evolving competitive landscape, the value imperative, and the globalization backlash, among others. This report outlines recommendations from PE industry pioneers that will help PE firms continue their success when facing these fundamental challenges