Why Private Equity Needs to Invest More in Talent Development

Traditionally, private equity companies have created value at the
companies they own by taking on debt, restructuring, and exploiting
underserved opportunities. But surging interest rates and increased
competition have made it much harder to deliver strong
returns. Ted Bililies, a partner and managing director of
AlixPartners, says private equity leaders can no longer count on
financial engineering to drive performance. Instead, they need to
invest in the human capital at their portfolio companies. Bililies
wrote the HBR article “Private Equity Needs a New Talent Strategy.”