Reported 9 months ago
Goldman Sachs Group Inc. is signaling the end of easy profits in private equity by focusing on creating better earnings growth rather than financial engineering and multiples expansion. The Wall Street firm's asset-management arm head, Marc Nachmann, highlighted a shift in strategy by hiring former Honeywell International Inc. CEO Darius Adamczyk to help improve operations in portfolio companies. The move comes as the private equity industry faces challenges with higher interest rates affecting acquisition costs and valuations, requiring a focus on operational improvements for higher returns.
Source: YAHOO