The first constant is the use of advancing technologies to make sure productivity benchmarks are made in the companies invested in. Whether it involves making processes more efficient, maximizing efficiency, or improving customer service, private equity managers will always look at ways to improve productivity. This strategy also includes integrating advanced technologies (such as analytical and predictive business tools) into the business that make operations more efficient.
Another constant is that of private equity managers focusing on ways to create organic growth for the business. Again, new technologies will play a role in analyzing the business, but managers do well with a portfolio that has a defined market and a stable, consistent source of revenue.
Finally, the strategy of seeking out acquisition opportunities with competitors that have comparable packages is another constant. A 2012 study reported that mergers and acquisitions was one of the principal ways that managers filled out portfolios. By finding efficient operations that can be combined managers can quickly increase a firm’s market share, especially in mature industries.