Misconceptions about private equity are so common that some investors try to avoid using the term itself. But it’s important to avoid sweeping generalizations and separate truth from myth when exploring the opportunity to partner with private equity.
Among the myths? Private equity investors rely too much on leverage or they’re not in it for the long haul. But that diminishes the value private equity can provide. The following article also addresses four truths, including:
- They can provide valuable growth capital with an entrepreneurial spirit
- They provide domain expertise and operational resources
- They have acquisition experience
- They highly value company leaders