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What does private equity do best?- Provides a long-term view for management teams to formulate their investment thesis- Brings a value creation playbook to the table- Ensures alignment of interest, where if the investor does well the private equity manager does well – and, importantly, the management team and the employees do well.
Being able to build longterm relationship is probably one of the greatest gifts I've been given within the industry.
I'm Pierre Barel, part of the investment team at Federated Hermes Private Equity. We are a private markets platform serving a broad range of asset classes including private equity private, credit infrastructure, and real estate.
What really does resonate most with me really is the people aspect of it. It ultimately is a people business um and really you can think of any private Equity manager as a Marketplace but at the core this is all people on the one hand you work with your investors there might be pensions there might be insurance but ultimately you have people allocating capital. On the long term with you partnering on the long term with you on the other hand you've got companies with their family histories their Founders their management teams and being able to build longterm relationship is probably one of the greatest gift I've been given within the industry there really are many different ways where private Equity helps building better companies for the future and really I believe private Equity delivers that on that promise in three ways the first one really is being able to provide a longterm view for fing teams and management teams to formulate but also execute on their investment feces the second one really is being able to bring a Playbook a value creation Playbook to the table be it across new markets expansion new product launchers mamp consolidation type of considerations and last but not least private Equity brings alignment of Interest so we ultimately are in a world where if the investor does well the prate Equity manager does well and importantly the management team and the employees do well all together bringing very good uh alignment of Interest
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